Nomura Holdings Inc. is providing a $100 million loan for a development project managed by Dubai-based Omniyat, sources familiar with the matter said, joining other global lenders increasingly looking to do deals in the Middle East, reported by Bloomberg.
The debt will be for one of Omniyat’s ultra-luxury projects in Dubai, the people said, speaking on condition of anonymity because the information is confidential. It would be the Japanese bank’s first real estate deal in the Middle East. Nomura declined to comment. The firm has set aside about $1 billion from its own balance sheet to compete with private equity funds for deals around the world.
Dubai’s property market is booming
The strategy will include lending to companies financed by private equity, as well as providing more complex forms of debt such as mezzanine financing. An Omniyat spokesman said the firm is regularly reviewing financing options. “We are fully confident in the long-term strength of the UAE’s economy and real estate market, as evidenced by our significant ongoing investments and landmark real estate projects.”
Dubai’s real estate market is booming, with a surge in interest from the world’s wealthiest people who have flocked to the city in recent years. Prime property prices are expected to rise by 5% this year, according to Knight Frank, far exceeding the firm’s forecasts for London and New York. Nomura’s loan to Omniyat comes as global lenders and investment banks are ramping up efforts to find financing opportunities for companies in the Middle East.
Citigroup Inc. provides $500 million in financing
Citigroup Inc. last year provided $500 million in financing to its subsidiary Astra Tech, one of the largest financing arrangements secured by a fintech company from the UAE. In neighboring Saudi Arabia, Tabby secured a $700 million asset-backed loan from JPMorgan Chase & Co. in 2023. Her colleague, Tamara, secured a loan from Goldman Sachs Group Inc.