Arada Secures $100 Million Shariah-Compliant Sustainability-Linked Financing With FAB for Real Estate Development

UAE-based master developer Arada has signed a $100 million Shariah-compliant, sustainability-linked financing facility with Abu Dhabi Commercial Bank (FAB), with the agreement guaranteed by Italy's export credit agency SACE, the company announced May 14, 2026.

The five-year Islamic financing facility will be used for general corporate purposes and to support development at Arada's projects, marking the company's first sustainability-linked financing arrangement.

Deal Structure and Sustainability Targets

The financing has been structured to align with Arada's internal sustainability targets and is linked to the company's Sustainability Performance Targets (SPTs), which will be measured on an annual basis throughout the tenure of the facility. The structure is designed to help Arada reduce its carbon footprint by using sustainable building materials wherever possible, while also assisting key suppliers in understanding the environmental impact of materials.

Arada's sustainability targets under the facility also include the ongoing integration of green certifications — such as LEED and WELL — into upcoming projects, as well as continued improvements to health and safety practices at existing and future developments.

Ahmed Alkhoshaibi, Group CEO of Arada, said the transaction underlines the company's approach to diversifying its funding sources. "This new financing underlines Arada's strength in diversifying our funding sources while reinforcing our determination to work harder to meet our sustainability goals," Alkhoshaibi said. "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."

SACE's Role and Italy-UAE Trade Ties

SACE, Italy's export credit agency, guaranteed the facility and identified Arada as a key strategic partner for Italian companies operating in the UAE, citing the master developer's commercial track record and future order book.

Ciro Aquino, SACE Regional Manager Middle East and Head of Dubai Office, said the transaction reflects the agency's broader ambitions in the region. "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," Aquino said. "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."

Arada's existing ties to Italian companies include its partnership with The Armani Group on the Armani Beach Residences at Palm Jumeirah, launched in 2024. That partnership alone is expected to result in the import of luxury Italian furnishings valued at up to AED250 million into the UAE over the next five years.

Financing Context

The sustainability-linked facility follows Arada's activity in global debt markets since 2022, during which the company raised over $1.5 billion through sukuk issuances after securing ratings from Moody's and Fitch. The new agreement with FAB and SACE represents a diversification of Arada's financing sources beyond the sukuk market.

Arada's development pipeline spans a global portfolio valued at AED130 billion, comprising 55,000 units. Since its founding in 2017, the company has launched 11 projects in the UAE and expanded into the UK and Australia, delivering 15,000 homes to date.