Arada Signs $100 Million Shariah-Compliant Sustainability-Linked Financing With FAB, Backed By Italian Export Credit Agency SACE

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.

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.”

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 reduce 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.

In addition, Arada’s targets also include the ongoing integration of green certifications such as LEED and WELL into its upcoming projects, as well as continuing to improve health and safety practices at existing and future developments.

Arada has been identified by SACE as a strategic partner for Italian companies due to the master developer’s track record in working with local corporates in recent years, including partnering with The Armani Group over the Armani Beach Residences at Palm Jumeirah project, which was launched in 2024. That partnership alone will result in the import of luxury Italian furnishings valued at up to AED250 million into the UAE over the next five years.

The sustainability-linked financing follows Arada’s successful forays in the global debt markets since 2022, where the company has raised over $1.5 billion through sukuk issuances, after securing favourable ratings from Moody’s and Fitch in 2022.

Since its launch in 2017, Arada has launched 11 successful projects in the UAE and expanded into the UK and Australia. The master developer has a global pipeline valued at AED130 billion featuring 55,000 units and has delivered 15,000 homes.