UAE developers tap bond market as real estate boom accelerates

Property developers in the UAE are raising billions through bonds and private credit to take advantage of the ongoing real estate boom, as banks tighten lending to private developers.

Dollar bond and sukuk issuances have grown more than 12 times to $6 billion since 2021, Bloomberg reports.

Heavyweight developers Emaar, Aldar and DAMAC, as well as emerging names like Sharjah’s Arada, have been regularly issuing Islamic bonds as they compete to buy prime land.

The rise in issuances has seen maturities due by 2030 grow to about $8 billion and some analysts are now flagging risks from the boom-time spending.