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Arada raises $400m through five-year sukuk with $700m in orders
The issuance marks the first debt offering by a UAE real estate developer since February 2026.
Arada raised $400 million through a five-year sukuk issuance, attracting more than $700 million in investor orders, according to Forbes Middle East. The transaction represents the first debt issuance by a UAE real estate developer since February 2026.
Sukuk structure and timeline#
The sukuk carries a five-year maturity from the date of issuance. Forbes Middle East reported the transaction closed with oversubscription, with total investor orders exceeding the final issuance amount by $300 million. The publication did not disclose the profit rate or the settlement date. The company structured the instrument as a sukuk rather than a conventional bond, following Islamic finance principles. Forbes Middle East reported the issuance attracted investor demand across the full $700 million order book, though the breakdown by investor category was not disclosed.
Issuer profile#
Arada operates as a real estate developer in the United Arab Emirates. The company has not previously issued sukuk or conventional bonds in the public markets, based on the available reporting. Forbes Middle East identified the transaction as the first of its kind by a UAE real estate developer in recent months. The publication did not name the arranging banks or the legal advisers involved in the transaction.
Market context#
The UAE Treasury conducted a separate auction in October 2026, issuing $300 million in sukuk and bonds with yields of 4.95 percent and 5.05 percent, Arabian Business reported. That auction attracted $1.24 billion in bids, representing an oversubscription ratio of 4.1 times. The Treasury instruments carried an October 2026 maturity. Arabian Business reported the yields applied to the October 2026 maturity date for both the sukuk and bond tranches.
Investor demand#
Investor orders for the Arada sukuk totalled more than $700 million, according to Forbes Middle East. The publication did not break down the orders by investor type, geography or tranche. The final allocation and the identity of the arranging banks were not disclosed in the available sources. The $400 million final issuance amount represented approximately 57 percent of the total orders received.
Sources2 sources across 2 domains
- forbesmiddleeast.comForbes Middle EastArada raised $400 million through a five-year sukuk, attracting more than $700 million in investor orders, and is the first UAE real estate developer to issue debt since February 2026
- arabianbusiness.comArabian BusinessUAE Treasury issued $300 million in sukuk and bonds in October 2026 with yields of 4.95% and 5.05%, attracting $1.24 billion in bids for a 4.1 times oversubscription
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