The United Arab Emirates continues to increase its influence in the global financial market — this time in the segment of Islamic debt securities, Bloomberg has reported. According to Bloomberg, sukuk of Emirati companies since the beginning of the year have shown an average profitability of 2.5%, leaving behind similar indicators in the United States. This increase is primarily associated with the construction boom in Dubai and Abu Dhabi, which stimulates demand for bonds that comply with Sharia standards.
Leading positions in the market are occupied by sukuk of Emaar Properties and Aldar Properties — two key development companies of the UAE. Against the background of economic uncertainty, US tariff policy and geopolitical risks, Emirati financial instruments have become attractive for investors such as Cheyne Capital and Ninety One Plc, which are actively forming positions in portfolios taking into account the high stability of the region’s market. Sukuk is an Islamic counterpart to bonds, which, unlike traditional debt securities, represent an ownership stake in real assets or projects. They do not provide for the payment of interest, which is in line with Sharia principles. In the case of the UAE, these instruments have become a safe and profitable asset, against the backdrop of a growing state-supported economy and a stable real estate market.
Analysts attribute the growth in demand to high rental incomes and the active participation of the state in the construction sector, which creates conditions for long-term growth. According to Reidin, over the past 12 months, housing prices in Dubai have increased by 17.5%, and in Abu Dhabi by 12.3%. At the same time, the sukuk index is showing a third consecutive monthly increase, which is the second best start to the year for all time.
Emaar: Market leader with record performance
Emaar Properties’ 2029 sukuk is trading near its highest level since November last year, following strong quarterly results and an upgrade from S&P Global. “Emaar is a major beneficiary of the ongoing Dubai property market rally,” said Fadi Gendi, head of fixed income at Arqaam Capital.
He said the company’s sukuk performance is underpinned by historically strong sales, stable liquidity and market leadership. Last year, Emaar Development PJSC saw sales grow 75% year-on-year to 65.4 billion dirhams ($17.8 billion). The company also reported a 59% increase in its backlog of projects to 91 billion dirhams, indicating robust demand from buyers willing to pay upfront.
Aldar: Foreign Capital and Green Sukuk
Aldar Properties, based in Abu Dhabi, is also showing steady financial growth. In 2024, its EBITDA grew by 51% and total sales by 20%. At the same time, 78% of sales today fall on foreign buyers – a few years ago this figure was less than 20%. This surge in interest is associated with the introduction of the Golden Visa program, which gave foreigners more rights and confidence in long-term investments in the UAE. According to investors, demand from real users, rather than speculators, creates a healthy market structure.
In March, Aldar placed a $500 million green sukuk, which received demand that exceeded the supply by six times. The company’s long-term notes maturing in 2033 and 2034 have also shown a yield of more than 3% since January 20. “Aldar benefits from its market dominance in Abu Dhabi and a strong ownership structure,” added Fadi Gendi. “The company has an ambitious plan to double EBITDA over the next three years.” The UAE’s sukuk market is showing strong growth amid global volatility, and analysts agree that Dubai and Abu Dhabi have emerged as new centers of gravity for long-term investments backed by real assets and stable domestic demand.