Dubai-based Samana Developers is planning its first entry into the Islamic debt market with a sukuk valued at approximately $300 million, set for issuance by the end of the first quarter of next year. The company also announced it is considering an initial public offering on the Dubai stock exchange by late 2026, signaling strong confidence in the emirate's sustained real estate boom.
Key Takeaways
- Samana Developers aims to issue a $300 million sukuk by the end of Q1 next year to fund land acquisitions for luxury projects.
- The company is exploring a potential Initial Public Offering (IPO) on the Dubai stock exchange by the end of 2026, planning to offer a 15% to 25% stake.
- Sales are projected to reach $1.9 billion (7.1 billion dirhams) this year, driven by European and regional investors.
- The move reflects a broader trend of Dubai developers leveraging capital markets amid a property market that has seen prices rise over 70% since 2019.
Capitalizing on a Booming Market
Samana Developers is joining a growing list of real estate firms in Dubai seeking to raise capital as the city's property market continues its upward trajectory. The planned $300 million sukuk, a type of Islamic bond, is designed to fuel the company's expansion plans.
Chief Executive Imran Farooq stated that the proceeds will be used to acquire land in prime and waterfront locations. This strategy is aimed at expanding the company's portfolio of ultra-luxury homes to meet sustained demand.
The developer is collaborating with several prominent financial institutions for the sukuk sale, including Emirates NBD, Dubai Islamic Bank, and Standard Chartered. According to Farooq, another bank may be added to the syndicate.
A Trend Among Dubai Developers
Samana's move into the debt market is not an isolated event. Other major developers like Binghatti Holding, Omniyat, Damac Properties, and Sobha Realty have also recently tapped sukuk or international debt markets. This trend highlights a collective strategy to fund ambitious growth projects as property values in Dubai continue to climb.
Strong Sales and Future Growth
The decision to raise capital is supported by the company's robust financial performance. Samana Developers is on course to achieve sales of 7.1 billion dirhams ($1.9 billion) this year, a significant increase from the 5.1 billion dirhams recorded in 2024.
Farooq attributed this growth to a steady influx of European investors, complemented by strong interest from regional buyers in countries such as Egypt, Lebanon, and Turkey. This diverse investor base has been a key driver of the market's resilience.
Project Pipeline: The World Islands
Samana is actively expanding its development footprint. The company is currently seeking approvals to construct 1,100 apartments on The World Islands, a man-made archipelago off the coast of Dubai. The developer already owns six islands within the project, signaling a major investment in one of the city's most iconic locations.
Despite its growth, the company is navigating an increasingly competitive landscape. Samana has adjusted its pricing strategy, implementing a 3% price increase this year, compared to an 11% hike in 2024. This moderation reflects the growing supply from other developers entering the market.
Path to a Public Listing
Beyond the immediate sukuk issuance, Samana Developers is also laying the groundwork for a potential stock market debut. The company is considering an initial public offering (IPO) on the Dubai stock exchange by the end of 2026.
The plan involves selling a stake of between 15% and 25% of the company. However, Farooq noted that the final decision will depend on market conditions and investor appetite at that time. If it proceeds, Samana would follow other private developers, such as Binghatti, in exploring public markets to fuel long-term growth.
"Most developers are doing extremely well with their sales and the market is quite liquid," Farooq explained. He added that most firms are raising money to expand their operations, rather than to address financial difficulties.
This sentiment underscores the healthy state of Dubai's real estate sector, where developers are focused on strategic expansion and capitalizing on a period of unprecedented growth.
The Broader Market Context
The strategic moves by Samana are set against the backdrop of a historic property boom in Dubai. Since 2019, home prices in the emirate have surged by more than 70%, according to data from JLL, a global real estate services company.
This rally has created a favorable environment for developers to secure funding for new projects. While public debt markets like sukuk are a popular option, UAE developers are also increasingly turning to other sources of capital.
- Sukuk and Bonds: Established players like Damac and Arada have successfully issued sukuk this year.
- Private Credit: Some developers are opting for private loans. For example, luxury developer Omniyat secured a $100 million loan from Nomura Holdings Inc. for a specific project.
- Initial Public Offerings: The potential for IPOs from firms like Samana and Binghatti indicates a new phase of maturation for the market, offering investors a chance to participate directly in the sector's growth.
With an estimated market share of around 4%, Samana's planned sukuk and potential IPO represent a significant step in its ambition to become a more prominent player in one of the world's most dynamic property markets.
