Photo Credit: WAM
Dubai, UAE — Master developer Arada has secured its first sustainability-linked financing facility worth $100 million from First Abu Dhabi Bank, with the agreement backed by Italy’s export credit agency SACE.
The five-year Shariah-compliant financing facility will support Arada’s general corporate operations and ongoing development projects across its growing portfolio in the UAE and international markets.
The financing structure is tied to Arada’s sustainability performance targets, reinforcing the developer’s commitment to green investment, environmentally responsible construction practices, and long-term sustainable growth.
Ahmed Alkhoshaibi, Group CEO of Arada, said the agreement highlights the company’s ability to diversify its funding sources while accelerating efforts to meet sustainability objectives.
He noted that the partnership with FAB and SACE also strengthens commercial ties between the UAE and Italy while supporting collaboration with Italian businesses involved in Arada developments.
Ciro Aquino, Regional Manager Middle East and Head of Dubai Office at SACE, said the agency is proud to support Arada through the sustainability-linked Islamic financing facility, describing the developer as a strategic partner capable of creating new opportunities for Italian companies operating in the UAE.
According to SACE, the agreement reflects its broader strategy to support sustainable economic growth, promote Italian business expansion internationally, and strengthen economic relations between Italy and the UAE.
Under the terms of the financing, Arada’s sustainability targets will be assessed annually throughout the facility period. The goals include reducing carbon emissions through the use of sustainable construction materials and improving environmental awareness among suppliers.
The developer also plans to continue integrating internationally recognised green certifications, including LEED and WELL standards, into future projects while enhancing health and safety measures across existing and upcoming developments.
SACE identified Arada as a strategic partner due to its ongoing collaborations with Italian companies, including its partnership with Armani Group on the Armani Beach Residences project at Palm Jumeirah. The partnership is expected to bring luxury Italian furnishings worth up to AED250 million into the UAE over the next five years.
The latest financing follows Arada’s expansion into global debt markets since 2022, during which the company raised more than $1.5 billion through Sukuk issuances after obtaining ratings from Moody’s and Fitch.
Founded in 2017, Arada has launched 11 projects across the UAE while expanding into the UK and Australia. The developer currently manages a global project pipeline valued at AED130 billion, comprising 55,000 units, with 15,000 homes already delivered.
