In a remarkable display of market confidence, Dubai‘s Binghatti Holding has successfully secured a $500 million sukuk, which was five times oversubscribed, with total orders exceeding $2.5 billion from both regional and international investors. This surge not only highlights investor faith in Binghatti’s ability to navigate the thriving Dubai real estate market but also indicates a broader trend of optimism surrounding property development in the region.
The sukuk—issued under Binghatti’s $1.5 billion Trust Certificate Issuance Programme—was priced at a competitive profit rate of 8.125 percent, an improvement from the initial guidance set at 8.5 percent. This corresponds to a spread of 418 basis points over the five-year US Treasury yield, signaling robust interest and favorable market conditions for the developer.
Dubai Developer Achieves $500 Million Sukuk Success
Notably, approximately half of the orders for the sukuk originated from international investors, a testament to the escalating confidence in Binghatti’s ambitious growth strategy and the sustained demand in Dubai’s property sector. The company, which holds a Ba3 rating from Moody’s and a BB- from Fitch, plans to list the sukuk on both Nasdaq Dubai and the London Stock Exchange, further expanding its investment appeal.
Muhammad BinGhatti, Chairman of Binghatti Holding, emphasized the significance of this achievement by stating, “Binghatti’s landmark sukuk marks a pivotal milestone in our journey, reinforcing our position as one of the region’s most dynamic and diversified developers.” He attributed the strong demand for the $500 million sukuk to Binghatti’s distinctive model, characterized by a vertically integrated platform that delivers exceptional growth and market-leading execution.
Ahmed Abdelaal, CEO of Mashreq Group, who played a vital role in advising on the transaction, remarked, “The exceptional investor response—both regional and international—underscores the strong appetite for the Dubai growth story and confidence in Binghatti’s trajectory.” This sentiment acknowledges the wider economic revival within Dubai, driven by attractive investment opportunities in real estate.
This sukuk issuance follows Binghatti’s impressive financial results for the first half of 2025, where the company reported a staggering net profit increase that more than tripled to AED 1.82 billion. Revenue experienced a year-on-year surge of 189 percent, reaching AED 6.3 billion, which reflects a total sales figure of AED 8.8 billion. Such performance solidifies Binghatti’s position as a key player in the burgeoning Dubai real estate market.
During this period, the company initiated seven projects and successfully delivered five developments, resulting in a substantial revenue backlog of AED 12.5 billion and a total development portfolio exceeding AED 70 billion. Currently, Binghatti has around 20,000 units under development across 30 projects in Dubai, including exclusive branded residences created in collaboration with luxury names like Bugatti, Mercedes-Benz, and Jacob & Co.
Furthermore, the company has recently acquired a vast 9 million sq. ft. area in Nad Al Sheba 1 for what will be its first master-planned community, with an anticipated development value of AED 25 billion. This ambitious undertaking reflects Binghatti’s commitment to shaping Dubai’s skyline and confirms the strong faith investors have placed in the company’s vision and capacity for growth in the competitive real estate market.