Latest news with #AradaDevelopments
Arabian Post
2 days ago
- Business
- Arabian Post
Arada Eyes $500 Million Sukuk to Fuel Gulf Land Acquisitions
Arada Developments, the Sharjah-based property developer, is preparing to raise up to $500 million via an Islamic bond as it joins a wave of Gulf real estate firms turning to debt markets to fund expansion. The group plans to launch the issuance next week to finance new land purchases and capitalise on a construction surge across the United Arab Emirates. The proposed sukuk issue represents a strategic step for Arada to strengthen its position amid intensified regional economic diversification efforts and an escalating boom in property development across the UAE. With past sukuk issuances drawing strong demand, the company aims to repeat that success to secure favourable financing terms. Arada previously issued a $400 million sukuk in June 2024 under its $1 billion programme, followed by a $150 million tap in September that attracted an order book exceeding $1.45 billion. In September 2022, the firm also issued a benchmark $500 million debut sukuk, tightening from initial guidance and attracting strong investor interest. ADVERTISEMENT Regional corporate sukuk issuance has surged, offsetting a dip in sovereign debt. LSEG data show corporate bond and sukuk sales climbed 52% year‑on‑year in the GCC during the first five months of 2025, even as total issuance fell overall. UAE debt issuance grew in the first half of 2025, although green bond and sukuk volumes declined sharply. Within the UAE, developers such as Sobha Realty and Omniyat also issued $500 million sukuk in May, highlighting strong appetite in the Islamic finance market for real estate funding. The overall trend underlines a rising preference for sharia‑compliant financing instruments to support both corporate needs and state diversification agendas. Founded in 2017 by Sharjah's deputy ruler Sheikh Sultan bin Ahmed Al Qasimi and Saudi Prince Khaled bin Alwaleed bin Talal Al Saud, Arada has rapidly scaled its presence in Sharjah and Dubai, launching developments valued at AED 60 billion and exploring international expansion into Australia. The company also plans to enter the Australian market fully by the end of 2025. Arada's prior promises to land acquisitions and project funding seem to extend with this latest sukuk. The proceeds will directly support the acquisition of new land parcels, ensuring the company can sustain its pipeline of projects including township developments, wellness‑focused residential schemes and branded hospitality offerings. The firm's decision to revert to debt markets follows its move early this month to seek approval for modifications to financial covenants on its existing $500 million trust certificates due 2027. Arada sought to raise leverage limits—net indebtedness to equity and EBITDA ratios—from current 1.5:1 and 3.0:1 to 2.0:1 and 4.0:1 respectively—prompting a consent solicitation that attracted strong holder engagement. A meeting on July 23 in London will finalise this vote. While global uncertainties—from oil price swings to geopolitical tensions—have weighed on capital markets, Gulf property developers have continued to tap sukuk issuance to spread costs and manage growth. Analysts argue that solid investor interest, particularly from Asia, sovereign wealth diversification and the Emirates' push into non‑oil sectors have sustained this demand.
Business Recorder
3 days ago
- Business
- Business Recorder
UAE developer Arada seeks $500 million Islamic bond as construction booms
DUBAI: United Arab Emirates property firm Arada Developments is seeking up to $500 million from an Islamic bond, or sukuk, two sources familiar with the matter said, as it joins other property firms tapping debt markets amid a construction boom in the Gulf state. Sharjah-based Arada would join a slew of Gulf property firms to issue bonds this year, which have tapped debt markets forfinancing needs and to capitalise on a real estate boom as Gulf countries accelerate economic diversification strategies. Arada plans to launch the bond next week and use funds from the debt sale to acquire new land, the sources said, declining to be named because they were not authorised to speak publicly. The plan was not yet finalised, they said. A spokesperson for Arada did not respond to a Reuters request for comment. Arada last tapped debt markets in September for a $150 million tap of its $400 million sukuk due 2029 which attracted strong demand and offered a yield of more than 7%. In the Middle East and North Africa, issuers raised a record $32.2 billion through sukuk in the six months to June 30, according to LSEG data, defying tariff uncertainty, geopolitical tensions and volatile oil prices. Regional developers which have raised Islamic debt this year include Dubai's Sobha Realty and Omniyat, both raising $500 million in May. Arada was established in 2017 by Sharjah's deputy ruler, Sheikh Sultan bin Ahmed AlQasimi and Prince Khaled bin Alwaleed bin Talal AlSaud, the son of Saudi billionaire Prince Alwaleed Bin Talal. It has projects and assets in its home country, and expects to launch sales and construction in Australia by the end of 2025. The company posted total revenue of $1.1 billion last year, up around 40% from 2023, according to a company presentation.
Zawya
3 days ago
- Business
- Zawya
UAE developer Arada seeks $500mln Islamic bond as construction booms
United Arab Emirates property firm Arada Developments is seeking up to $500 million from an Islamic bond, or sukuk, two sources familiar with the matter said, as it joins other property firms tapping debt markets amid a construction boom in the Gulf state. Sharjah-based Arada would join a slew of Gulf property firms to issue bonds this year, which have tapped debt markets for financing needs and to capitalise on a real estate boom as Gulf countries accelerate economic diversification strategies. Arada plans to launch the bond next week and use funds from the debt sale to acquire new land, the sources said, declining to be named because they were not authorised to speak publicly. The plan was not yet finalised, they said. A spokesperson for Arada did not respond to a Reuters request for comment. Arada last tapped debt markets in September for a $150 million tap of its $400 million sukuk due 2029 which attracted strong demand and offered a yield of more than 7%. In the Middle East and North Africa, issuers raised a record $32.2 billion through sukuk in the six months to June 30, according to LSEG data, defying tariff uncertainty, geopolitical tensions and volatile oil prices. Regional developers which have raised Islamic debt this year include Dubai's Sobha Realty and Omniyat, both raising $500 million in May. Arada was established in 2017 by Sharjah's deputy ruler, Sheikh Sultan bin Ahmed AlQasimi and Prince Khaled bin Alwaleed bin Talal AlSaud, the son of Saudi billionaire Prince Alwaleed Bin Talal. It has projects and assets in its home country, and expects to launch sales and construction in Australia by the end of 2025. The company posted total revenue of $1.1 billion last year, up around 40% from 2023, according to a company presentation. (Reporting by Hadeel Al Sayegh and Federico Maccioni; Editing by Anousha Sakoui and Rachna Uppal)
Bloomberg
11-07-2025
- Business
- Bloomberg
Sydney Is Next Stop for Dubai's Cashed-Up Property Developers
Good morning, it's Ainsley here with all the news you need to round off your working week. Today's must-reads: • Dubai developers eye Australia • New podcast on interest rates • Macquarie-backed LNG developer in limbo Cashed-up Dubai property developers are looking to Australia for expansion. Arada Developments plans to build 2,500 homes and has bought six plots in Sydney and the Gold Coast. Sobha Realty, owned by a tycoon from India, is also looking Down Under.
