Arada has signed its first sustainability-linked financing agreement, securing a $100 million facility from First Abu Dhabi Bank (FAB), with a guarantee from Italy’s export credit agency, SACE.
The five-year Shariah-compliant Islamic financing facility will support Arada’s general corporate purposes and ongoing development activities across its projects in the UAE.
The financing structure has been designed to align with Arada’s internal sustainability targets and reflects the developer’s broader commitment to green investment and sustainable construction practices.
Ahmed Alkhoshaibi, Group CEO of Arada, said the agreement strengthens the company’s funding diversification strategy while reinforcing its sustainability ambitions.
“I’m pleased to see that our vision has been supported by our valued partners at FAB and SACE, and that the agreement strengthens our existing partnerships with Italian companies, contributes to Italy’s economic growth, and additionally enhances trade between the UAE and Italy,” he said.
Ciro Aquino said SACE is proud to support Arada as a strategic partner capable of creating new opportunities for Italian companies operating in the UAE.
He added that the transaction reflects SACE’s commitment to supporting sustainable growth, expanding international business opportunities, and strengthening economic relations between Italy and the UAE.
The financing is linked to Arada’s Sustainability Performance Targets (SPTs), which will be monitored annually throughout the facility’s duration.
Under the agreement, Arada aims to further reduce its carbon footprint by increasing the use of sustainable building materials and helping suppliers better assess the environmental impact of materials used across its developments.
The company also plans to continue integrating green building certifications, including LEED and WELL, across upcoming projects, while strengthening health and safety standards across existing and future developments.
SACE identified Arada as a strategic partner for Italian businesses due to its track record of collaborations with Italian companies, including its partnership with Armani Group on the Armani Beach Residences project at Palm Jumeirah, launched in 2024.
That partnership is expected to generate imports of luxury Italian furnishings worth up to AED250 million into the UAE over the next five years.
The latest financing agreement follows Arada’s broader expansion in international debt markets since 2022, during which the developer raised more than $1.5 billion through Sukuk issuances after securing ratings from Moody’s and Fitch Ratings.
Since launching in 2017, Arada has introduced 11 projects across the UAE and expanded into the UK and Australia. The company currently has a global project pipeline valued at AED130 billion comprising 55,000 units, with 15,000 homes already delivered.
With input from WAM
