Arada's USD 450M Sukuk Lists on Nasdaq Dubai

In a significant move that underscores the growing strength of the UAE's debt capital markets, Arada Developments LLC has successfully listed a USD 450 million Sukuk on Nasdaq Dubai. This latest issuance was met with overwhelming investor interest, being more than four times oversubscribed and attracting orders exceeding USD 2 billion from both regional and international investors. The Sukuk, issued under Arada Sukuk 2 Limited’s USD 1 billion Trust Certificate Issuance Programme, is set to mature in 2030 and offers a profit rate of 7.150%.

This listing marks Arada's third Sukuk on Nasdaq Dubai, bringing its total outstanding Sukuk on the exchange to USD 1.5 billion. The ceremony to mark the listing was attended by HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, who rang the market-opening bell alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).

Prince Khaled expressed his delight at the successful listing, noting that it reflects a continued rise in international investor confidence in Arada. He highlighted the company's strategic expansion into new markets and its record-breaking results in launches, sales, and deliveries as key factors driving global demand for its Sukuk programme.

Hamed Ali, CEO of Nasdaq Dubai and DFM, emphasized the depth and diversity of the exchange's Sukuk market, noting that this latest listing reaffirms the confidence of issuers and expands the range of opportunities available to global investors. He reiterated Nasdaq Dubai's commitment to connecting issuers with global capital and supporting the growth of leading UAE corporates.

The listing aligns with Arada's strategic expansion plans, enabling the company to capitalize on growth opportunities within the UAE and internationally. The total value of Sukuk listed on Nasdaq Dubai has now reached USD 100.6 billion, with the overall value of debt securities on the exchange standing at over USD 141.6 billion.

For investors, Arada's successful Sukuk listing presents an intriguing opportunity. The oversubscription and strong investor demand highlight the company's robust market position and growth potential. However, as with any investment, potential investors should consider their risk tolerance and conduct thorough due diligence.

In conclusion, the listing of Arada's USD 450 million Sukuk on Nasdaq Dubai is a testament to the company's strong market presence and the growing attractiveness of the UAE's debt capital markets. Given the robust investor interest and Arada's strategic growth plans, a hold position may be advisable for existing investors, while potential investors may consider entering the market with caution, keeping an eye on future developments.