Sharjah-based real estate firm Arada Developments is planning to raise up to $500 million through an Islamic bond (sukuk), according to two sources familiar with the matter. The move aligns with the wider regional trend of property developers leveraging debt markets to support expansion during a sustained construction boom across the Gulf.
Bond Launch Planned Amid Strong Market Momentum
Arada intends to launch the sukuk next week, with proceeds expected to go toward acquiring new land. However, the sources noted that the plan remains subject to finalisation. The company has yet to issue an official comment on the matter.
If successful, Arada will join other Gulf developers like Sobha Realty and Omniyat, both of which secured $500 million through Islamic bonds in May. The broader MENA region has witnessed strong momentum in sukuk issuance, with $32.2 billion raised in the first half of 2025 alone, according to data from LSEG. This growth continues despite geopolitical tensions and fluctuating oil prices.
Arada’s Expansion Strategy and Market Performance
Arada previously tapped the debt market in September 2024, issuing a $150 million tap on its $400 million sukuk maturing in 2029. That issuance saw strong demand and offered a yield of more than 7%.
Founded in 2017 by Sharjah’s Deputy Ruler Sheikh Sultan bin Ahmed Al Qasimi and Prince Khaled bin Alwaleed bin Talal Al Saud, Arada has expanded rapidly. It currently holds a diverse portfolio of projects across the UAE and plans to launch both sales and construction activity in Australia by the end of 2025.
The developer reported a significant revenue increase last year, reaching $1.1 billion—approximately 40% higher than its 2023 performance, according to a company presentation.
Regional Growth Fuels Demand for Capital
As Gulf countries push ahead with diversification strategies and infrastructure investment, real estate firms are increasingly turning to Islamic finance tools like sukuk to meet their capital needs. Arada’s upcoming issuance reflects growing investor interest in the region’s property sector, driven by both domestic demand and international expansion plans.
