Binghatti’s $500 Million Sukuk Breaks New Ground

A US $500 million Sukuk issued by Binghatti Holding has begun trading on Nasdaq Dubai, marking a significant leap in the developer’s capital‑markets strategy. The issuance, part of a US $1.5 billion Trust Certificate Issuance Programme, drew more than US $2.5 billion in investor orders—five times the issuance size—and is priced at an 8.125% profit rate, reflecting substantial tightening from initial guidance.

Muhammad BinGhatti, Chairman of Binghatti Holding, marked the listing by ringing the opening bell at Nasdaq Dubai, an occasion also attended by Hamed Ali, CEO of both Nasdaq Dubai and Dubai Financial Market. The Sukuk is dual‑listed, also trading on the London Stock Exchange, reinforcing Binghatti’s international funding footprint.

This latest issuance lifts Binghatti’s total Sukuk listed on Nasdaq Dubai to US $1 billion, underscoring sustained investor confidence and reinforcing Nasdaq Dubai’s appeal as a hub for Islamic financing. With this listing, Nasdaq Dubai’s cumulative Sukuk listings stand at US $98.6 billion across 108 instruments.

Binghatti’s issuance was orchestrated under legal guidance from global firm White & Case, which facilitated establishment of the Trust Certificate programme and the inaugural issuance. The pricing—at a profit rate of 8.125%, or 418 basis points above the benchmark US 5‑year Treasury—illustrates tight valuation driven by vigorous demand, roughly halving the initial area of 8.50%.

Operational metrics underpinning investor enthusiasm are compelling. During the first half of 2025, Binghatti's net profit more than tripled to AED 1.82 billion, with total sales soaring to AED 8.8 billion and revenue up 189% year‑on‑year at AED 6.3 billion. The developer’s broader project pipeline remains robust—some AED 70 billion in ongoing developments and a backlog of AED 12.5 billion—supported by landmark branded residences in collaboration with luxury names such as Bugatti, Mercedes‑Benz, and Jacob & Co.

A strategic dimension further enhancing Binghatti’s profile is its foray into master‑planned communities. The company plans a flagship development in Nad Al Sheba 1 on a sprawling 9 million sq ft site, valuing the project at over AED 25 billion, which adds depth to its long‑term growth strategy. Creditworthiness is another pillar of investor trust: Binghatti is rated ‘BB‑’ by Fitch and ‘Ba3’ by Moody’s, both with stable outlooks.