Arada has successfully signed its first sustainability-linked financing, a $100 million facility that has been agreed with First Abu Dhabi Bank and guaranteed by Italy’s export credit agency SACE. The financing agreement has been structured to align with Arada’s internal targets to achieve local impact and underscores the master developer’s commitment to pursuing green investment and sustainable construction practices.
Industry sources added that this five-year Islamic financing facility will be used for general corporate purposes and to support development at Arada’s projects. The financing has been linked to Arada’s Sustainability Performance Targets (SPTs), which will be measured on an annual basis through the tenure of the facility. This structure will help Arada to curb its carbon footprint by using sustainable building materials wherever possible, while also assisting the company’s key suppliers to understand the environmental impact of materials.
Arada continues to boost its position as a global master developer by integrating futuristic sustainability with strategic international partnerships. With a multi-billion dollar pipeline and a commitment to ESG-driven growth, the company is redefining the corporate landscape of the Middle East and beyond.
Strategic Milestones & Global Footprint
- Expansion & Delivery: Since 2017, Arada has successfully launched 11 landmark projects in the UAE, while expanding its footprint into the UK and Australia.
- Scale of Operations: The developer manages a massive global pipeline valued at AED 130 billion, comprising 55,000 units, with over 15,000 homes already delivered to residents.
- Capital Market Leadership: Arada has raised over $1.5 billion through Sukuk issuances since 2022, backed by favorable credit ratings from Moody’s and Fitch.
ESG Integration & Sustainable Innovation
- Green Standards: Future developments are anchored in the integration of LEED and WELL certifications, ensuring that urban living meets the highest international benchmarks for environmental and human health.
- Operational Safety: A rigorous commitment to evolving health and safety practices remains central to both existing portfolios and upcoming high-profile projects.
Elite Global Collaborations
- The SACE Partnership: Identified by SACE as a premier strategic partner, Arada serves as a gateway for Italian excellence.
- Luxury Lifestyle Angle: A flagship collaboration with The Armani Group for the Armani Beach Residences at Palm Jumeirah will drive the import of AED 250 million in luxury Italian furnishings over the next five years, bridging high-end European design with UAE’s ultra-luxury real estate sector.
The five-year Islamic financing facility will be used for general corporate purposes and to support development at Arada’s projects.
Ahmed Alkhoshaibi, Group CEO of Arada, said: “This new financing underlines Arada’s strength in diversifying our funding sources while reinforcing our determination to work harder to meet our sustainability goals. I’m pleased to see that our vision has been supported by our valued partners at FAB and SACE, and that the agreement strengthens our existing partnerships with Italian companies, contributes to Italy’s economic growth and additionally enhances trade between the UAE and Italy.”
Ciro Aquino, SACE Regional Manager Middle East and Head of Dubai Office, said: “We are proud to stand alongside Arada, a leading player with a strong vision and strategic projects capable of opening up new opportunities for Italian companies in the United Arab Emirates. By supporting this Shariah-compliant sustainability-linked facility, SACE reaffirms its commitment to being close to Italian businesses operating in the region, even in a complex and evolving global environment. This transaction reflects our ambition to continue enabling sustainable growth, fostering new business opportunities for Italian excellence and supporting companies as they navigate international markets, while further consolidating the economic ties between Italy and the UAE.”
