OIC Economies

Arada reopens UAE real estate debt markets with successful closure of $400 million Sukuk


  • Transaction marks first post-conflict UAE real estate debt issuance
  • Five-year offering priced with a coupon of 8.875% attracted order book of over $700 million, with subscription reaching 2x at its peak
  • Sukuk assigned expected ratings of BB- by Fitch and B1 by Moody’s

Arada Developments LLC (“Arada”), rated B1 by Moody’s and B+ by Fitch, has successfully returned to the global debt markets via a successful issuance of a $400 million Senior Unsecured Sukuk, which has been listed on the London Stock Exchange and Nasdaq Dubai.

The transaction marks the first issuance by a UAE real estate developer since the outbreak of the regional conflict in February 2026, highlighting Arada’s credit strength via the Company’s continued access to international debt capital markets despite heightened geopolitical uncertainty and a volatile market backdrop.

The five-year fixed-rate Reg S Sukuk issuance, rated BB- by Fitch and B1 by Moody’s, was priced with a coupon of 8.875% from the initial price thoughts of 9.375%.

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