Binghatti Holding Launches $500M Sukuk, 5x Oversubscribed

Binghatti Holding Ltd, a rapidly expanding real estate enterprise in the UAE, has successfully launched a $500 million 5-year Senior Unsecured Sukuk, which falls under its $1.5 billion Trust Certificate Issuance Programme.

This significant financial movement attracted attention far beyond its initial scope, garnering an order book that surpassed $2.5 billion, effectively making it five times oversubscribed.

The sukuk, bearing an 8.125% profit rate, which aligns with a 418 basis points spread above the 5-year US Treasury yield, witnessed a substantial tightening from its preliminary guidance, buoyed by the robust demand from investors.

Ratings from Moody's and Fitch—Ba3 and BB- respectively, both with stable outlooks—further cement the company's esteemed position in the market.

Muhammad BinGhatti, the Chairman of Binghatti Holding, stated, "Binghatti's landmark sukuk marks a pivotal milestone in our journey, reinforcing our position as one of the region's most dynamic and diversified developers. The strong demand and investor trust shown in the $500 million issue from our sukuk programme highlights Binghatti's unique model, a vertically integrated platform underpinned by phenomenal growth and market leading execution."

The successful issuance and the enthusiasm it garnered from both regional and international investors demonstrate the allure of Dubai’s real estate market, as well as specific confidence in Binghatti Holding’s growth trajectory and strategic initiatives.

Ahmed Abdelaal, CEO of Mashreq Group, praised the company's market position and the role his organization played in facilitating the return to the sukuk market.

He stated, "The exceptional investor response—both regional and international—underscores the strong appetite for the Dubai growth story and confidence in Binghatti's trajectory. This landmark issuance not only affirms their access to global capital markets but also establishes a new 5-year benchmark for the sector. Mashreq continues to lead in advising regional corporates on accessing international capital markets from inception. Our partnership with Binghatti reflects the trust placed in our expertise and capabilities."

In the first half of 2025, Binghatti Holding reported a substantial increase in its net profit, reaching DHS1.82 billion, a figure more than three times its previous amount.

This financial growth was propelled by the consistent demand within the Dubai real estate sector, with the Group's total sales hitting DHS8.8 billion and revenue soaring by 189% year-on-year to DHS6.3 billion.

These figures not only demonstrate Binghatti’s robust financial performance but also its pivotal role in the thriving Dubai real estate landscape.

Binghatti Holding has not just excelled financially; it has also made significant strides in project development and expansion.

Within the first half of the year alone, the company launched seven new projects and completed five, with a total of 15 projects delivered over the past 18 months.

Boasting a revenue backlog of DHS12.5 billion and a development portfolio exceeding DHS70 billion, Binghatti stands as a leading developer in Dubai.

Currently, the company is developing around 20,000 units across 30 projects in prime locations such as Downtown, Business Bay, Jumeirah Village Circle, and Meydan, including flagship branded residences in partnership with luxury names like Bugatti, Mercedes-Benz, and Jacob & Co.

Adding to its expansive portfolio, Binghatti recently acquired approximately 9 million sq. ft. megaplot in Nad Al Sheba 1 for its inaugural master-planned community, projected to have a development value exceeding DHS25 billion.

This move not only amplifies Binghatti’s presence in the Dubai real estate market but also signifies its commitment to innovation and luxury.

The company's success in the sukuk market, combined with its strategic investments and developments, positions Binghatti Holding as a formidable entity in the real estate sector, showcasing a blend of financial acumen, market insight, and developmental prowess.