Property developer Arada Developments LLC has returned to the international capital markets after closing a $400 million Senior Unsecured Sukuk.

The issuance represents the first debt offering by a UAE real estate developer since the start of regional conflict in February 2026. Listed on both the London Stock Exchange and Nasdaq Dubai, the five-year fixed-rate paper was priced with a coupon of 8.875 per cent, down from initial price thoughts of 9.375 per cent.

Investor demand led to a final order book exceeding $700 million, excluding Joint Lead Manager interest, with subscription levels reaching twice the offered amount at peak. The Sukuk has received expected credit ratings of BB- from Fitch and B1 from Moody’s.

Arada plans to use a portion of the capital to fund a capped tender offer of up to $180 million for its existing debt. The move forms part of a strategy to manage obligations prior to the maturity of its $411.7 million 8.125 per cent Sukuk in June 2027. The transaction is expected to remain largely leverage-neutral.

HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, said: “Our return to the international debt markets is a testament to the resilience of Arada’s business and the enduring confidence of regional and global investors not just in our story, but in UAE real estate more generally. Despite a period of significant disruption across the region, we were able to attract strong demand from a diversified investor base, and we are grateful for that continued trust as we pursue our next phase of growth.”

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank served as Joint Global Coordinators. Joint Lead Managers and Bookrunners included Arab Bank, Arqaam Capital, Bank ABC, Goldman Sachs International, JP Morgan Securities, Sharjah Islamic Bank and Warba Bank.

Established in 2017, Arada has expanded beyond the UAE into Australia, the UK, Syria and Saudi Arabia, holding a development pipeline valued at over AED185 billion. The group has sold more than 20,000 units valued at over AED40 billion, delivering over 17,000 properties globally.