Saudi-based Dar Al Arkan Real Estate Development Company on Wednesday rang the market-opening bell to celebrate the listing of a $500 million sukuk on Nasdaq Dubai, the region’s international exchange.

The listing provides strong support for Dar Al Arkan’s capital-raising strategy as it prepares for further property development activities across Saudi Arabia, including commercial real estate and integrated residential communities.

Company chairman Yousef Bin Abdullah Al Shelash rang the bell in the presence of Essa Kazim, the governor of Dubai International Financial Centre (DIFC), secretary general of Dubai Islamic Economy Development Centre (DIEDC) and chairman of Dubai Financial Market (DFM), and senior representatives of the Saudi company as well as Nasdaq Dubai chairman Abdul Wahed Al Fahim and CEO Hamed Ali.
The sukuk was two times oversubscribed and received significant interest from international as well as regional market participants, said a statement from the Saudi developer.

It brings the total value of Dar Al Arkan’s sukuk currently listed on Nasdaq Dubai to $1.35 billion, including two listings in May 2014 that totaled $850 million, it added.

Al Shelash said: "The substantial demand shown for our latest sukuk underlines the confidence that investors have in our company and its plans for further development in commercial and residential projects."

"Our listing on Nasdaq Dubai, the international exchange based in our own region, provides us with excellent visibility to investors across the Middle East and around the world as well as a respected listing environment regulated to international standards," he added.

Kazim pointed out that this listing from a prominent Riyadh-based real estate developer further strengthens the close capital markets ties between the UAE and Saudi Arabia, which benefit economic development in the GCC.

Dar Al Arkan’s choice of Dubai as a listing venue also represents a further step in the emirate’s growth as the global capital of Islamic Economy, he noted.

Dubai’s sukuk listings have now reached a total nominal value of $53.81 billion, the highest amount of any listing venue in the world, he added.

Al Fahim said: "As Dubai strengthens its role as the global centre for sukuk in terms of advisory knowhow and depth of professional expertise, as well as listings, the exchange will reinforce its role as a focal point for Sharia’a-compliant capital-raising."

"We will maintain our strategy of attracting high quality issuers of Sukuk and other Islamic asset classes as well as promoting best practices in Islamic markets," he noted.

Ali said Dar Al Arkan is one of the most prominent names in property development in the Mena region with several high quality commercial and residential property projects in Riyadh, Jeddah, Dammam and across Saudi Arabia.

"We are delighted to provide support for the company’s capital markets initiatives and look forward to further strengthening our relationship with Dar Al-Arkan and the investors in its Sukuk through our post-listing relationship, including global visibility and regulatory excellence," he added.-TradeArabia News Service