Sobha and Omniyat, two major Dubai-based real estate companies, are planning to enter the Islamic bond (sukuk) market, aiming to capitalize on the strong demand for real estate in Dubai, according to Bloomberg.
Sobha has started gauging investor interest both within the UAE and abroad, particularly in London, in preparation for a potential dollar-denominated sukuk issuance. The company plans to use the proceeds from the issuance to acquire new land in Dubai, in order to strengthen its portfolio and keep pace with the current real estate boom. Notably, Sobha ranked as the third largest property developer in Dubai for the 2024 financial year, with sales reaching AED 21 billion (USD 5.7 billion).
Meanwhile, Omniyat is considering an initial dollar-denominated sukuk issuance in the current quarter to finance upcoming luxury projects. A spokesperson for Omniyat stated that the company continually evaluates strategic opportunities that align with its long-term vision. Last year, Omniyat reported sales of AED 2.94 billion, and in January, it secured a USD 100 million loan from Japan’s Nomura Holdings to support one of its projects in Dubai.
Strategic Timing Amid Market Uncertainty
These moves come at a time when global markets are experiencing instability due to the sweeping tariffs imposed by U.S. President Donald Trump’s administration. Nevertheless, both companies view sukuk issuance as an opportunity to attract sharia-compliant financing and appeal to new segments of investors.
Such steps reflect the confidence of Dubai’s property developers in the continued momentum of the real estate market, as well as their drive to expand through innovative financial tools that meet the expectations of both local and international investors.
