Arada Lists US$450 Million Sukuk On Nasdaq Dubai Amid Strong Demand

2025-10-12 05:08:29

(MENAFN- The Arabian Post)

Nasdaq Dubai has admitted a US$450 million Sukuk issued by Arada Developments LLC under Arada Sukuk 2 Limited's US$1 billion trust certificate programme. The securities carry a maturity in 2030 and were priced at a profit rate of 7.150 percent.

The offering drew orders in excess of US$2 billion, representing over four times oversubscription. The listing increases Arada's cumulative Sukuk outstanding on the exchange to US$1.5 billion across three issuances.

Arada, a UAE-based master developer founded in 2017 and led by Sheikh Sultan bin Ahmed Al Qasimi and Prince Khaled bin Alwaleed bin Talal Al Saud, has in recent years pushed aggressively into capital markets, leveraging its real estate and lifestyle portfolio to raise funds. The company launched its US$1 billion Sukuk programme in 2024, raising US$400 million in its first tranche.

On the listing day, Prince Khaled rang the market-opening bell at Nasdaq Dubai in the presence of Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market. Prince Khaled commented that the transaction underscores“continued rise in international investor confidence in Arada”, citing expansion into new markets and robust performance across sales and deliveries. Hamed Ali said the receptivity from global investors reinforces the depth and diversity of Nasdaq Dubai's Sukuk platform.

Islamic finance analysts view the placement as a signal of resilience in Gulf debt markets. Despite global interest-rate volatility, issuers in the UAE and Saudi Arabia have continued to secure demand at relatively high yields in regional and international investor pools. The oversubscription supports the logic that Sukuk, especially from issuers with strong development pipelines, remain an attractive instrument in the Gulf.

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Total Sukuk listings on Nasdaq Dubai now exceed US$100 billion, with debt securities overall exceeding US$141 billion. Adding Arada's issuance strengthens its presence among corporate issuers on the exchange.

Arada's real estate footprint spans residential, mixed-use, wellness and hospitality assets. It has expanded beyond the UAE with development interests in Australia. The firm also acquired multiple gym brands-FitnGlam, The Platform Studios and Fitcode-to bolster its wellness vertical, integrating them with its existing Wellfit chain.

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