Arada Secures $100 Million Sustainability-Linked Financing from First Abu Dhabi Bank
Financing Agreement Marks a Milestone in Sustainable Development
Dubai, United Arab Emirates: Arada has announced the successful signing of its inaugural sustainability-linked financing, a $100 million facility with First Abu Dhabi Bank (FAB), backed by Italy’s export credit agency, SACE. This financing arrangement is designed to align with Arada’s internal sustainability objectives, emphasizing the master developer’s commitment to green investment and sustainable construction practices.
The five-year Islamic financing facility will be allocated for general corporate purposes and to support ongoing development projects under Arada’s portfolio.
Commitment to Sustainability Goals
Ahmed Alkhoshaibi, Group CEO of Arada, emphasized the importance of this financing in diversifying funding sources and reinforcing the company’s commitment to sustainability. He noted that the partnership with FAB and SACE not only supports Arada’s vision but also strengthens ties with Italian companies, contributing to economic growth in Italy and enhancing trade relations between the UAE and Italy.
Ciro Aquino, SACE Regional Manager for the Middle East and Head of the Dubai Office, expressed pride in collaborating with Arada, highlighting the developer’s strategic projects that create new opportunities for Italian businesses in the UAE. He stated that this Shariah-compliant sustainability-linked facility reflects SACE’s commitment to supporting Italian enterprises in the region, even amid a complex global landscape.
Linking Financing to Sustainability Performance Targets
The financing is intricately linked to Arada’s Sustainability Performance Targets (SPTs), which will be evaluated annually throughout the facility’s duration. This structure is expected to aid Arada in minimizing its carbon footprint by utilizing sustainable building materials and assisting key suppliers in understanding the environmental impact of their products.
Arada’s sustainability targets also encompass the integration of green certifications such as LEED and WELL into upcoming projects, alongside ongoing improvements in health and safety practices at both existing and future developments.
Strategic Partnerships with Italian Companies
SACE has identified Arada as a strategic partner for Italian companies, given the developer’s successful collaborations with local corporates. Notably, Arada has partnered with The Armani Group for the Armani Beach Residences at Palm Jumeirah, launched in 2024. This partnership is projected to facilitate the import of luxury Italian furnishings valued at up to AED250 million into the UAE over the next five years.
Recent Success in Global Debt Markets
This sustainability-linked financing follows Arada’s successful ventures in global debt markets since 2022, during which the company raised over $1.5 billion through sukuk issuances, bolstered by favorable ratings from Moody’s and Fitch.
Since its inception in 2017, Arada has launched 11 successful projects in the UAE and has expanded its reach into the UK and Australia. The master developer boasts a global pipeline valued at AED130 billion, featuring 55,000 units, and has successfully delivered 15,000 homes.
About Arada
Founded in 2017 and headquartered in the UAE, Arada aims to create spaces that foster healthier, happier, and more meaningful lives. The company’s operations encompass property development, retail, education, healthcare, industry, fitness, wellness, and hospitality. Arada has launched 11 record-breaking communities in the UAE and has expanded its footprint into the UK and Australia. The developer also manages a diverse portfolio of complementary brands and experiences, including large-scale gyms, food and beverage outlets, retail assets, social initiatives, and visitor destinations.
For further details about Arada, visit www.arada.com.
Published on 2026-05-14 10:41:00 • By the Editorial Desk
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