Riyadh, June 24, 2025 — Saudi Arabia’s premier real estate developer, Dar Al Arkan, has taken a bold step to reinforce its funding base by mandating a consortium of leading global and regional banks to arrange a five-year, U.S. dollar-denominated sukuk. The issuance, which will be structured as a senior unsecured Islamic bond under Regulation S, is set to appeal to a wide pool of international investors, marking another milestone in the company’s long-term capital strategy.
This strategic move underscores Dar Al Arkan’s drive to not only diversify its funding channels but also bolster its global presence as a key player in the Islamic finance space. The sukuk, subject to market conditions, is poised to become one of the most talked-about financial instruments from the Middle East this year.
A Syndicate of Trust and Reach
The real estate giant has brought together a formidable team of banking partners, including Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, J.P. Morgan, and Standard Chartered, among others. These institutions have been appointed as joint lead managers and bookrunners.
This strategic mix of Gulf-based and global banks reflects Dar Al Arkan’s intent to reach a broad investor base, tapping into both Islamic and conventional finance markets across Asia, Europe, and the Middle East. The banks are expected to commence a series of investor meetings across key financial hubs starting this week.
Five Years of Growth-Focused Financing
Dar Al Arkan’s choice of a five-year maturity is intentional. In a market where investor appetite leans toward medium-term paper offering a balance of yield and liquidity, the proposed sukuk stands to be well-received. The sukuk will be priced competitively and benchmarked against recent sovereign and corporate sukuk issuances.
The proceeds, as per company guidance, will be directed toward general corporate purposes, including liquidity enhancement, refinancing obligations, and accelerating development projects. This aligns with the company’s broader strategic focus on operational expansion and disciplined financial management.
Reinforcing Market Confidence
The decision to raise capital through sukuk rather than conventional bonds is no surprise. As a developer rooted in the Gulf and serving primarily Islamic markets, Dar Al Arkan remains committed to Shariah-compliant instruments. Over the past decade, the company has built a solid reputation among global investors for honoring repayment obligations and transparent financial practices.
Dar Al Arkan’s previous sukuk issuances have all seen strong participation, especially from investors seeking stable, fixed-income instruments tied to a high-profile Middle Eastern issuer. This latest issuance is expected to further boost investor confidence, given its strategic underpinnings and the credibility of the banking syndicate involved.
Supporting Saudi Vision 2030
The sukuk announcement comes at a time when the Saudi government is actively promoting non-oil economic growth and capital market development. The initiative fits squarely within the objectives of Vision 2030, Saudi Arabia’s national transformation plan that aims to create a diversified and sustainable economic ecosystem.
By tapping into global debt capital markets via Shariah-compliant tools, Dar Al Arkan is demonstrating how private sector companies can support the Kingdom’s broader economic goals. Moreover, this move could serve as a blueprint for other large Saudi corporates considering international sukuk routes.
Islamic Finance on the Rise
Globally, Islamic finance continues to witness double-digit growth, with sukuk forming the backbone of Shariah-compliant fixed income. Analysts predict that global sukuk issuances will exceed USD 200 billion in 2025, fueled by high investor demand, strong sovereign support, and attractive yields relative to traditional bonds.
This latest offering by Dar Al Arkan will likely attract interest from a wide spectrum of investors, including Islamic banks, Takaful providers, sovereign wealth funds, and ESG-focused institutional buyers. In particular, the company’s history of timely redemptions and its ongoing profitability add to the sukuk’s appeal.
Real Estate Ambitions Backed by Strong Funding
Founded in 1994, Dar Al Arkan has grown to become one of the largest publicly listed real estate companies in the Kingdom of Saudi Arabia. With a portfolio spanning residential, commercial, and mixed-use developments, the company has played a key role in shaping the modern urban landscape of Riyadh and beyond.
In recent years, Dar Al Arkan has expanded its footprint internationally, with projects in Dubai, Qatar, Bosnia, and even Europe. This global expansion necessitates a robust financing strategy—and sukuk represents a fitting tool to fuel this next phase.
With a consistent credit rating and a strong project pipeline, the company remains well-positioned to deliver on its promises to both bondholders and shareholders.
Investors Watching the Roadshow Closely
As the investor meetings begin, market watchers will be keen to assess demand levels. Recent GCC sukuk have shown strong oversubscription trends, driven by low global yields, stable oil prices, and healthy economic outlooks in the region.
Dar Al Arkan’s roadshows will visit key financial centers such as Abu Dhabi, Dubai, London, and Singapore, offering potential investors a chance to engage with company executives and understand the sukuk’s structure in detail.
Given the backing of top-tier banks and a clear use-of-proceeds strategy, market analysts believe the sukuk will attract strong cross-border demand. The final pricing and allocation are expected to be announced shortly after the roadshows conclude.
Human Element: What This Means for Stakeholders
Beyond the headlines, this sukuk is set to bring tangible benefits to Dar Al Arkan’s wide network of stakeholders. For employees, it means greater job security and the assurance of growth. For contractors and suppliers, it translates to faster project deliveries and improved payment cycles. For homebuyers and tenants, it signals trust and continuity in the properties they invest in or inhabit.
For investors, this sukuk is more than a fixed-income asset. It’s a stake in the growth of one of the Middle East’s most recognized property developers—backed by the ethics of Islamic finance and the ambition of Saudi Vision 2030.
A Defining Moment
As the sukuk enters its pricing phase, Dar Al Arkan is once again proving its agility and ambition in a rapidly evolving financial landscape. This is not just about raising money—it’s about reinforcing leadership, expanding impact, and demonstrating how Islamic finance can empower modern corporations.
The next few weeks will be crucial in shaping market response, but early indicators suggest that Dar Al Arkan’s latest move could become a landmark issuance in the region’s capital markets.
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