Nasdaq Dubai Lists Arada Developments LLC’s USD 400 Million Sukuk

Nasdaq Dubai has announced that it will list a USD 400 million Sukuk issued by Arada Developments LLC, a leading developer based in the UAE.

This is Arada’s second listing on Nasdaq Dubai and the first under their new USD 1 billion Sukuk program. The Sukuk program allows Arada to raise funds by issuing Islamic bonds, which are compliant with Islamic finance principles. This listing on Nasdaq Dubai will help Arada attract investments and expand its financial capabilities to support its ongoing and future development projects.

The five-year fixed-rate Sukuk issued by Arada Developments LLC attracted significant interest from investors globally. It was oversubscribed by 3.5 times, indicating strong demand. Investors from Europe, the Middle East, and Asia showed robust interest in this Sukuk, reflecting its appeal across diverse markets. High-net-worth individuals (HNWIs), banks, fund managers, and institutional investors all took an active part in the offering.

This listing further solidifies Dubai’s reputation as a premier global hub for Sukuk listings. The total value of Sukuk issued from Dubai now stands at USD 93 billion. Local issuers contribute 44% to this total, highlighting the vibrant domestic market, while international issuers account for the remaining 56%. Nasdaq Dubai, where the Sukuk was listed, boasts a substantial platform with USD 129 billion worth of listed bonds and Sukuk.

This successful Sukuk issuance not only demonstrates investor confidence in Arada Developments LLC but also showcases Dubai’s financial market infrastructure and its ability to attract diverse international investments. It positions Dubai as a key player in the global Islamic finance sector, driving economic growth and strengthening its status as a leading financial center in the region.

To celebrate the successful listing, Ahmed Alkhoshaibi, Group CEO of Arada, participated in the market-opening ceremony at Nasdaq Dubai. He rang the bell alongside Hamed Ali, CEO of Nasdaq Dubai and DFM.

“We are delighted to return to Nasdaq Dubai for our second Sukuk listing, following the strong response and increased investor interest from our first issuance last year. In the past year, we achieved record results with new project launches, sales, and deliveries, which boosted global interest in our new Sukuk program,” said Alkhoshaibi.

This event marks Arada’s continued growth and success in attracting investments, highlighting their ongoing contribution to the market and investor confidence in their projects.

Hamed Ali, representing Nasdaq Dubai, expressed his satisfaction with Arada’s successful Sukuk listing on the exchange. The tremendous level of interest in this listing demonstrates how confident foreign investors are in the Islamic finance sector and the UAE’s overall financial environment. This achievement further cements Nasdaq Dubai’s standing as a prominent platform for Sukuk issuances.

Ali emphasized Nasdaq Dubai’s dedication to promoting the evolution of Islamic finance. He looks forward to future collaborations that will enhance the exchange’s role as a leading global financial hub. This listing not only showcases the attractiveness of Dubai as a financial center but also underscores its pivotal position in facilitating international investment in Islamic finance instruments.

Arada, rated B1 by Moody’s and B+ by Fitch, has initiated six projects totaling AED 60 billion in Sharjah and Dubai. These projects include –

Aljada – Sharjah’s largest mixed-use development, designed to transform the cityscape with residential, commercial, leisure, and entertainment facilities.

Masaar – The UAE’s pioneering forested community, offering a unique living environment integrated with nature and sustainability.

Armani Beach Residences – Located at Palm Jumeirah in Dubai, featuring luxury residences designed by the renowned Armani brand, offering unparalleled views and lifestyle amenities.

Arada’s diverse portfolio underscores its commitment to delivering innovative and prestigious developments that enhance urban living and contribute significantly to the real estate landscape of both emirates.

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