Finance World Magazine| Edition: October 2024
This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East." Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE. In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.
This month, we are pleased to present the October edition of Finance World Magazine, focusing on "Embracing the Future of Investment in the Middle East."
Our cover story features Eng. Yaser Al Nuaimi, Acting Head of Infrastructure Partnerships at the Abu Dhabi Investment Office, highlights how the Public-Private Partnerships initiative is reshaping the investment landscape of the UAE.
In this issue, we explore the integration of AI and personal finance, Dubai's strategic vision for FinTech and advancements made in the healthcare sector, followed by a special feature on "Finance in 2040" - a captivating time capsule of financial predictions.
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
In a testament to its financial prowess<br />
and market appeal, Arada has successfully<br />
closed a $150 million tap of its<br />
existing $400 million Sukuk issuance. This<br />
strategic financial manoeuvre, executed<br />
on September 25, <strong>2024</strong>, marks a significant<br />
milestone for the UAE-based master<br />
developer, pushing its total issuance over<br />
the benchmark size to an impressive $550<br />
million. The tap, priced at $102.54 with<br />
a yield of 7.35%, represents a 15 basis<br />
point tightening from the Initial Pricing<br />
Thoughts. This pricing strategy not only<br />
reflects Arada’s strong market position<br />
but also indicates the high demand for<br />
its financial instruments. Notably, the<br />
subscription order book peaked at over<br />
$480 million, excluding Joint Lead Managers’<br />
demand, resulting in a 3.2 times<br />
oversubscription of the offer size.<br />
Arada’s existing five-year fixed rate RegS<br />
debut Sukuk issuance, which forms the<br />
foundation of this tap, carries impressive<br />
ratings of BB- from Fitch and B1 from<br />
Moody’s. These ratings underscore the<br />
company’s solid financial footing and<br />
creditworthiness in the global market.<br />
Ahmed Alkhoshaibi, Group CEO of<br />
Arada, expressed his satisfaction with<br />
the outcome, stating, “In our second visit<br />
to the global markets this year, we have<br />
been delighted to see that the momentum<br />
for investor interest in Arada’s growth<br />
story and future prospects has been<br />
maintained.” He further emphasized that<br />
this successful tap underlines Arada’s<br />
strong governance record, attractive<br />
investor proposition, and credit strength.<br />
The tap issuance follows Arada’s<br />
extensive investor engagement efforts,<br />
including recent roadshows across the<br />
UK and GCC. This proactive approach<br />
to investor relations has clearly paid<br />
dividends, as evidenced by the strong<br />
market response. This tap follows Arada’s<br />
second public financing deal in June<br />
<strong>2024</strong>, which was another major milestone<br />
for the company. Priced at 8.000%, the<br />
June issuance attracted an overwhelming<br />
subscription order book of $1.45 billion,<br />
3.5 times the offer size. The success of<br />
both issuances underscores the effectiveness<br />
of Arada’s financial strategy and<br />
its ability to attract substantial investor<br />
interest through favourable pricing and<br />
strategic engagement. The combination<br />
of strong investor relations, a growing<br />
track record of successful financings,<br />
and a clear vision for expansion has<br />
propelled Arada to the forefront of the<br />
real estate sector. This latest Sukuk tap<br />
Ahmed Alkhoshaibi,<br />
Group CEO of Arada<br />
issuance, following the successful June<br />
deal, further strengthens Arada’s liquidity<br />
position and provides additional capital<br />
to fuel its ambitious growth plans.<br />
The success of this financial endeavour<br />
was facilitated by a consortium of reputable<br />
financial institutions. Abu Dhabi<br />
Commercial Bank, Dubai Islamic Bank,<br />
Emirates NBD Capital, Mashreq, Sharjah<br />
Islamic Bank, and Standard Chartered<br />
Bank served as Joint Global Coordinators<br />
for the tap. The role of Joint Lead<br />
Managers and Joint Bookrunners was<br />
shared among these institutions, with<br />
the addition of Warba Bank.<br />
Arada has earmarked the proceeds<br />
from the Sukuk for general corporate<br />
purposes and to support the development<br />
of its existing projects. This strategic<br />
allocation of funds aligns with the<br />
company’s ambitious growth plans and<br />
commitment to delivering high-quality<br />
real estate projects.<br />
Since its inception in 2017, Arada has<br />
launched six successful projects across<br />
Sharjah and Dubai, boasting a combined<br />
sales value of AED60 billion. These include<br />
landmark developments such as Aljada,<br />
Sharjah’s largest mixed-use megaproject;<br />
Masaar, the UAE’s first forested community;<br />
and the ultra-luxury Armani Beach<br />
Residences at Palm Jumeirah.<br />
The company’s financial success continues<br />
to reflect its growing dominance<br />
in the real estate market. In 2023, the<br />
company reported a remarkable 100%<br />
increase in property sales, reaching<br />
AED 7.02 billion compared to the previous<br />
year. This significant growth is<br />
bolstered by Arada’s ability to deliver on<br />
its commitments, having sold over 14,000<br />
units and completed more than 10,000<br />
units. These figures highlight Arada’s<br />
strong reputation among investors and<br />
homeowners alike, as the developer<br />
consistently meets expectations.<br />
In addition to its impressive performance<br />
in the UAE, Arada’s growth trajectory now<br />
extends internationally. In August <strong>2024</strong>,<br />
the company announced its first overseas<br />
expansion into the Australian property<br />
market, marking a pivotal moment in its<br />
global strategy. With an office established<br />
in Sydney and a project pipeline valued<br />
at AED 6 billion, Arada is diversifying its<br />
portfolio and expanding its footprint in<br />
new geographies. This move underscores<br />
the company’s ambition to evolve from<br />
a leading UAE developer into a global<br />
real estate powerhouse.<br />
The successful $150 million Sukuk tap<br />
issuance serves as yet another testament<br />
to Arada’s market prowess and financial<br />
expertise. The oversubscription of the<br />
offering and tightening of pricing demonstrates<br />
the high investor confidence in the<br />
company’s strategic direction and fiscal<br />
health. As Arada continues to explore<br />
new markets and deliver high-value<br />
projects, this achievement provides a<br />
strong financial foundation for its future<br />
endeavours. With its robust track record<br />
of property deliveries and innovative<br />
financial management, Arada is poised<br />
to seize emerging opportunities in both<br />
domestic and international real estate<br />
markets. This latest milestone solidifies<br />
the company’s position as a key player in<br />
the sector, ready to capitalise on future<br />
growth and development.<br />
Oct <strong>2024</strong> www.thefinanceworld.com 37