Sharjah’s largest developer Arada Developments is set to issue USD-denominated five-year senior unsecured sukuk after hiring banks to advise on the issuance, Zawya reports, citing an IFR report. The sukuk, which would raise a minimum of USD 500 mn, is set to be rated B1/-/BB–, IFR reported. Investor meetings and fixed income investor calls started yesterday.

This would be Arada’s second sukuk issuance: The Sharjah-based developer raised USD 359 mn from its first foreign sukuk issuance back in 2022. The sukuk issuance was set at an 8.1% yield, and attracted USD 720 mn in orders.

ADVISORS- Our friends at Mashreq, along with RAK Bank, Sharjah Islamic Bank, and Warba Bank, are acting as joint lead managers and bookrunners. They are joined by Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, and Standard Chartered Bank as joint global coordinators, together with Arab Bank, Al Rajhi Capital, and Kamco Invest.

News of the issuance follows the awarding of AED 1.48 bn in contract to develop its projects: The developer awarded AED 1.48 bn in contracts to Abu Dhabi-based Pivot Engineering and Sharjah-based contractor Intermass for the development of the last two phases of its AED 9.5 bn woodland megaprojects, Masaar, Wam reports.

Who’s doing what? Intermass received a AED 830 mn contract to build 597 units in the sixth and final phase of the project, named Saro, while Pivot secured a AED 650 mn contract to build 428 residential units in Sequoia, the project’s fifth phase. Intermass previously undertook the development of the first phase, Sendian, and is currently responsible for the construction of Masaar’s third phase.

The timeline: Construction on the two phases is set to start immediately, with both slated for completion by summer 2026. Meanwhile, the second and third phases — dubbed Kaya and Robinia — are on track for completion in the coming months. Once fully finished in 2026, the entire Masaar project will consist of 3k villas and townhouses across its six phases.

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