Dubai-based luxury property developer Binghatti Holding Limited has instructed banks to arrange a series of fixed-income investor calls starting 3 February 2026, as it prepares for a benchmark-sized, five-year US dollar-denominated sukuk issuance.
The proposed transaction will be structured as a Regulation S senior unsecured sukuk under the company’s US$1.5 billion Trust Certificate Issuance Programme, to be issued through Binghatti Sukuk 2 SPV Limited. The final execution of the deal will depend on market conditions following the investor outreach, which is intended to gauge investor demand, pricing expectations and regional interest.
Binghatti enters the market with a stable sub-investment-grade credit profile. Fitch Ratings has assigned the company a BB- rating with a stable outlook, while Moody’s Investors Service rates it Ba3, also with a stable outlook. Rating agencies have highlighted Binghatti’s growing scale and focus on premium residential developments, alongside the supportive environment of Dubai’s high-end property market, while noting risks related to project concentration and execution.
The planned sukuk comes amid continued reliance by regional property developers on Islamic capital markets to support expansion, refinance existing debt and extend maturity profiles. Sukuk issuance remains a popular funding route for Gulf-based issuers seeking access to deep pools of Shariah-compliant liquidity and greater diversification beyond traditional bank lending.
Binghatti has expanded rapidly in recent years, developing branded and design-led residential projects in prime Dubai locations, including Business Bay, Downtown Dubai and Jumeirah Village Circle. The company has also enhanced its market positioning through partnerships with global luxury brands, targeting high-net-worth local and international buyers.
Ratings agencies note that advance sales form a core element of Binghatti’s business model, generating cash flows that support construction activity and reduce dependence on external financing. At the same time, the company has increasingly turned to capital markets to fund land acquisitions, sustain its development pipeline and manage cash-flow timing differences.
The planned five-year tenor reflects a broader regional trend toward securing medium-term funding that balances investor demand for duration with manageable refinancing risk. Benchmark-sized transactions also help issuers establish liquid yield curves, supporting future capital market access.
Investor sentiment toward Gulf sukuk has remained resilient despite global interest rate uncertainty. Strong regional liquidity and continued demand from Islamic and conventional investors have supported issuance levels, although real estate-related credits remain under closer scrutiny due to exposure to market cycles and execution risks.
The sukuk will be issued through Binghatti Sukuk 2 SPV Limited, a bankruptcy-remote special purpose vehicle commonly used in Islamic finance structures. As a senior unsecured instrument, it will rank alongside the group’s other unsecured obligations, making overall credit strength and cash-flow generation key considerations for investors.