Mubasher: Shuaa Capital on Tuesday announced the issuance of a five-year sukuk at a value of SAR 506 million ($135 million) for the Saudi real estate developer Jabal Omar Development Company.
The UAE-based financial services group was the sole arranger for the sukuk transaction.
The Islamic bonds issue will contribute to diversifying Jabal Omar’s capital base, in addition to implementing major projects in and around Makkah, Shuaa said in a statement.
“Sukuk represent an ideal financing mechanism for the long-term funding requirements of real estate, as reflected by the dominance of the sector in issuing Sukuks over the past 18 months in the region,” Fawad Tariq-Khan, Shuaa’s CEO said.
In May 2018, the two GCC firms announced signing a memorandum of undetstanding (MoU) to launch and manage real estate investment vehicles in Saudi Arabia.
The Emirati financial services company revealed in August plans to launch a real estate investment traded fund (REIT fund) in Saudi Arabia prior to the end of 2018.
Shuaa last reported a 31% year-on-year increase in net profits during the third quarter of 2018, registering AED 30.1 million ($8.20 million).
Jabal Omar last reported turning a profit during the third quarter of 2018, logging SAR 469.62 million after calculating Zakat and Tax, against incurring SAR 593.97 million losses in the same period a year earlier.
