Dar Al Arkan’s $500m sukuk helps expansion
dubai — Yousef bin Abdullah Al Shelash, chairman of Dar Al Arkan Real Estate Development Company, rang the market opening bell to celebrate the listing of a $500 million sukuk on Nasdaq Dubai on Wednesday.
The listing provides strong support for Dar Al Arkan’s capital-raising strategy as it prepares for further property development activities across Saudi Arabia, including commercial real estate and integrated residential communities.
The sukuk was two times oversubscribed and received significant interest from international as well as regional market participants. It brings the total value of Dar Al Arkan’s sukuk currently listed on Nasdaq Dubai to $1.35 billion, including two listings in May 2014 that totalled $850 million.
The ceremony took place in the presence of Essa Kazim, governor of Dubai International Financial Centre, secretary-general of Dubai Islamic Economy Development Centre, and chairman of Dubai Financial Market, and senior representatives of Dar Al Arkan, as well as Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, and Hamed Ali, chief executive of Nasdaq Dubai.
Al Shelash said: “The substantial demand shown for our latest sukuk underlines the confidence that investors have in our company and its plans for further development in commercial and residential projects. Our listing on Nasdaq Dubai provides us with excellent visibility to investors across the Middle around the world.”
Kazim said: “This listing from a prominent Riyadh-based real estate developer further strengthens the close capital market ties between the UAE and Saudi Arabia, which benefit economic development in the East and GCC. Dar Al Arkan’s choice of Dubai as a listing venue also represents a further step in Dubai’s growth as the global capital of Islamic economy.”
Dubai’s sukuk listings have now reached a total nominal value of $53.81 billion, the highest amount of any listing venue in the world.
Al Fahim said: “As Dubai strengthens its role as the global centre for sukuk in terms of advisory know-how and depth of professional expertise, as well as listings, the exchange will reinforce its role as a focal point for Shariahcompliant capital-raising.”
Ali said: “With high-quality commercial and residential property projects in Riyadh, Jeddah, Dammam and across Saudi Arabia, Dar Al Arkan is one of the most prominent names in property development in the Mena region.”
Dar Al Arkan’s $500 million sukuk listed on Nasdaq Dubai on April 17, 2017.
— business@khaleejimes.com