By Sam Bridge
Dar Al-Arkan chairman rings market opening bell at Nasdaq Dubai to celebrate latest sukuk listing
Yousef Bin Abdullah Al-Shalash, chairman of Saudi-based Dar Al-Arkan Real Estate Development Company, on Wednesday rang the market opening bell at Nasdaq Dubai to celebrate the listing of a $600 million sukuk.
The company said the listing supports its accelerating development activities, including flagship integrated residential communities across Saudi Arabia, as well as its I Love Florence Tower in Downtown Dubai.
The five-year sukuk was more than 2.5 times oversubscribed and received significant interest from Middle Eastern, European and Asian investors.
It brings Dar Al-Arkan’s total sukuk value listed on Nasdaq Dubai to $1.6 billion, following listings of two sukuks of $500 million each in 2017 and 2018.
This issue was Dar Al Arkan’s 10th issue since 2007 and the 6th tranche of its current $2 billion program.
Al-Shalash said: “With over $1.5 billion of subscriptions, our latest sukuk issuance was very well received by the market. It is a testament to our strong relationship with the global debt capital markets and a big vote of confidence from investors in our stewardship of their capital.
"The funds raised provide us with the capital to dynamically invest in our business activities across Saudi Arabia as we see the market conditions improving and prepare for the next upcycle. As the region’s international exchange, Nasdaq Dubai provides our Sukuk with high visibility to regional and international investors as well as an efficient listing platform regulated to international standards.”
Dar Al-Arkan’s assets include about 12.4 million square metres of projects under development. The company has handed over 15,000 residential units in Saudi Arabia and holds a land bank with a book value of about SR17 billion.
The company’s latest sukuk underlines Dubai’s role as one of the largest global centres for sukuk listings by value with a current total of $64.3 billion.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.