Nasdaq Dubai welcomes the listing of $400 million Sukuk by UAE master developer Arada
News: 1 July 2024
- Arada’s Sukuk issuance on Nasdaq Dubai, saw strong demand from regional and international investors.
- Robust infrastructure and strong investor interest contribute to Nasdaq Dubai’s status as a premier exchange with USD 129 billion in fixed income listings.
Nasdaq Dubai welcomes the listing of $400 million Sukuk by Arada Developments LLC (“Arada”), 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% of this value, while foreign issuers make up the remaining 56%. 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.
Ahmed Alkhoshaibi, Group CEO of Arada, 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, CEO of Nasdaq Dubai and DFM, 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. We are committed to supporting the growth of the Islamic finance market and look forward to more collaborations that will enhance our role as a global financial hub.”
Arada, rated B1 by Moody’s and B+ by Fitch, has successfully launched six projects valued at AED60 billion across Sharjah and Dubai, including Aljada, Sharjah’s largest mixed-use megaproject; Masaar, the UAE’s first forested community; and Armani Beach Residences at Palm Jumeirah.
