Binghatti Holding’s Major Sukuk Issuance: A Financial Milestone
Overview of the Sukuk Offering
Dubai-based developer Binghatti Holding has successfully raised $500 million through a five-year senior unsecured sukuk. The offering attracted significant interest, being oversubscribed by five times, resulting in over $2.5 billion in orders from a mix of regional and international investors.
Details of the Sukuk Terms
This sukuk was issued under Binghatti’s established $1.5 billion Trust Certificate Issuance Programme. Initially priced with a profit rate of 8.5 percent, the final rate was tightened to 8.125 percent, corresponding to a spread of 418 basis points above the five-year US Treasury yield. Such favorable terms illustrate the strong investor confidence in Binghatti’s business model and the overall strength of Dubai’s real estate market.
Strong International Investor Interest
A notable aspect of this sukuk issuance is that half of the subscriptions came from international investors. This reflects a growing belief in both Binghatti’s strategic expansion plans and the resilience of Dubai’s property market. With the rising interest from global players, the outlook for Binghatti and Dubai’s real estate sector seems increasingly optimistic.
Credit Ratings and Market Position
Binghatti Holding currently enjoys credit ratings of Ba3 from Moody’s and BB- from Fitch, both with stable outlooks. Following the issuance, the sukuk will be listed on both Nasdaq Dubai and the London Stock Exchange, further enhancing its visibility in the financial markets.
Statements from Leadership
Muhammad BinGhatti, Chairman of Binghatti Holding, commented on this landmark sukuk, describing it as a pivotal milestone in the company’s journey. He emphasized that the issuance highlights Binghatti’s stature as one of the region’s most dynamic and diversified developers. BinGhatti noted the overwhelming demand and the trust investors placed in the $500 million sukuk, pointing out Binghatti’s unique vertically integrated platform that supports strong growth and execution in the market.
Similarly, Ahmed Abdelaal, CEO of Mashreq Group—who advised on this transaction—underscored the exceptional response from investors, both regionally and globally. He believes this enthusiasm reflects not only a robust appetite for Dubai’s growth story but also confidence in Binghatti’s future trajectory.
Record Financial Performance
The sukuk issuance follows a remarkable performance by Binghatti in the first half of 2025, where the company reported a net profit exceeding AED 1.82 billion, marking a more than tripling of its profits compared to previous periods. Furthermore, revenue surged by 189 percent year-on-year, reaching AED 6.3 billion, driven by total sales amounting to AED 8.8 billion.
In this period, Binghatti also launched seven projects and completed five developments, reinforcing its strong market presence. The company now has a revenue backlog of AED 12.5 billion and a development portfolio that exceeds AED 70 billion.
Ongoing Development Projects
Currently, Binghatti is overseeing approximately 20,000 units under development across 30 diverse projects in Dubai. This includes exclusive branded residences in collaboration with luxury brands such as Bugatti, Mercedes-Benz, and Jacob & Co., appealing to a high-end market segment. Recently, the firm has acquired a substantial 9 million square foot site in Nad Al Sheba 1 for its inaugural master-planned community, projected to have a development value of AED 25 billion.
Binghatti Holding’s latest sukuk issuance not only marks a successful financial maneuver but also serves as a testament to its growth strategy and the booming property market in Dubai. With a robust project pipeline and strong financial performance, the company is positioning itself for continued success in the competitive real estate landscape.
