Nasdaq Dubai welcomes listing of $400 million Sukuk by Arada
- 01 Jul 2024
Nasdaq Dubai has welcomed the listing of $400 million Sukuk by Arada Developments, a UAE-based master developer. This marks Arada’s second listing on Nasdaq Dubai and its first under their newly developed $1 billion Sukuk programme.
The five-year fixed-rate Sukuk attracted strong demand from regional and international investors.
The offering was oversubscribed by 3.5 times, drawing interest from a diverse group of investors worldwide, including Europe, the Middle East and Asia, with significant participation from institutional investors, fund managers, high-net-worth individuals (HNWIs), and banks.
This listing reinforces Dubai’s position as a premier global hub for Sukuk listings, bringing the total value of Sukuk issuances to $93 billion.
Local issuers contribute 44 per cent of this value, while foreign issuers make up the remaining 56 per cent.
Nasdaq Dubai boasts a total value of $129 billion in listed bonds and Sukuk.
To mark the successful listing, Ahmed Alkhoshaibi, Group CEO of Arada, rang the bell at the market-opening ceremony at Nasdaq Dubai, along with Hamed Ali, CEO of Nasdaq Dubai and DFM.
Alkhoshaibi said, “We’re pleased to be returning to Nasdaq Dubai to list our second Sukuk after the strong success and increased investor interest that followed the listing of our debut issuance a year ago. Over the past 12 months we have again delivered record results in terms of new project launches, sales and deliveries, all of which have contributed towards the significant worldwide interest in our new Sukuk programme.”
Hamed Ali added, “We welcome Arada’s successful listing on Nasdaq Dubai.
The robust demand for this listing reflects the strong confidence that global investors have in the UAE’s Islamic finance market and broader capital markets. This listing further solidifies Nasdaq Dubai’s status as a leading market for Sukuk issuances.”
Arada has awarded two contracts valued at Dhs1.48 billion for the construction of Sequoia and Saro, the final two phases of Masaar, the Dhs9.5 billion woodland megaproject in the Suyoh district of Sharjah.
The company said that it had awarded a contract to build 428 homes in the “Sequoia” valued at Dhs650 million, while the second contract, worth Dhs830 million, to build the 597 units at Saro, the sixth and final phase of Masaar.
Ahmed Alkhoshaibi, Group CEO of Arada, said, “We are thrilled to award these contracts in a timely manner, ensuring that the Masaar community is delivered efficiently and to an exceptional level of quality. Since the project’s launch over three years ago, our buyers have witnessed significant growth in the capital appreciation of their homes.”
Construction on Sequoia and Saro will begin immediately, with all homes expected to be completed by summer 2026.
These awards increase the number of homes under construction at Masaar to 2,570, with 430 homes in Masaar’s first phase completed at the end of 2023.
The second and third phases of Masaar, Kaya and Robinia, which consist of 986 homes, are scheduled to be completed within the coming months.
In January, Arada has reported a doubling of sales during 2023 to Dhs7.02 billion following unprecedented demand for its premium communities in Sharjah and Dubai.
The master developer saw a 100 per cent increase in the total value of property sold compared to the previous 12 months, buoyed by continued international interest in the UAE property markets.
In total, Arada sold 2,824 homes in 2023, a 25 percent gain on the previous year, once again reflecting the recent trend of buyers investing in larger and higher-value villas and apartments.
Arada has announced a partnership with Bright Capital Investment to bring one of the UK’s best-performing independent schools to the Masaar megaproject in Sharjah.
With planned capacity for 2,700 students, Reigate Grammar School Masaar will be the first branch campus of a British school in Sharjah, offering a full K-12 programme and complementing the existing rich variety of high-quality academic institutions in the Emirate.
Scheduled to welcome its first pupils in September 2027, Reigate Grammar School Masaar marks the expansion of the Reigate Grammar School brand into the UAE, after opening seven other schools in the UK, Saudi Arabia, China and Vietnam.
Founded in 1675 near London, Reigate Grammar School was ranked as one the UK’s top 20 private schools by A-Level results in 2023 and has frequently been named ‘School of the Year’ by a range of British industry and education bodies.
Ahmed Alkhoshaibi, Group CEO of Arada, said: “Reigate Grammar School is one of the most established and respected educational institutions in the UK, with an exceptional record of academic excellence and achievement.
