Nasdaq Dubai welcomed today the listing of a $400 million sukuk by Arada Developments LLC, a UAE-based property developer. This marks the company’s second listing on Nasdaq Dubai and its first under the newly developed $1 billion sukuk program.
Marking the successful listing of Arada’s sukuk, Ahmed Alkhoshaibi, group CEO of Arada, and Hamed Ali, CEO of Nasdaq Dubai and DFM, rang the bell at the market-opening ceremony at Nasdaq Dubai.
Strong demand
“We’re pleased to be returning to Nasdaq Dubai to list our second sukuk after the strong success and increased investor interest that followed the listing of our debut issuance a year ago. Over the past 12 months, we have again delivered record results in terms of new project launches, sales and deliveries, all of which have contributed towards the significant worldwide interest in our new sukuk program,” stated Alkhoshaibi.
Arada’s five-year fixed-rate sukuk attracted strong demand from regional and international investors. The offering was oversubscribed by 3.5 times, attracting interest from a diverse group of investors from Europe, the Middle East and Asia. The listing also saw significant participation from institutional investors, fund managers, high-net-worth individuals (HNWIs), and banks.
Read: 10 most expensive stocks in the world by share price
Value of sukuk issuances rises to $93 billion
Arada’s sukuk listing restates Dubai’s position as a premier global hub for sukuk listings. Moreover, it brings the total value of sukuk issuances to $93 billion. Local issuers contributed 44 percent of this value, while foreign issuers made up the remaining 56 percent.
Hamed Ali added: “The robust demand for this listing reflects the strong confidence that global investors have in the UAE’s Islamic finance market and broader capital markets. This listing further solidifies Nasdaq Dubai’s status as a leading market for sukuk issuances.”
Notably, Nasdaq Dubai boasts a total value of $129 billion in listed bonds and sukuk.
For more markets news, click here.
