Abu Dhabi has taken another decisive step in cementing its role as a global innovation leader, with Aldar Investment Properties raising $290 million via sukuk taps, cementing its reputation as a frontrunner in ESG debt issuance.
This strategic issuance reopens the company’s existing $500 million Green Trust Certificates (GTCs) maturing in 2034 and 2035.
With a solid Baa1 (Stable) rating from Moody’s, Aldar is positioning itself as a frontrunner in Sharia-compliant sustainable investments amid a booming global green bond market.
Announced in mid-September 2025, this sukuk programme highlights Aldar’s focus on environmentally responsible real estate development.
As one of Abu Dhabi’s premier property developers, Aldar has long championed eco-friendly projects, from energy-efficient residential towers to LEED-certified commercial spaces.
The taps, each valued at $145 million, aim to fund green initiatives aligned with the UAE’s Net Zero by 2050 strategy, including low-carbon buildings and renewable energy integrations.
Understanding the Sukuk Taps
Sukuk, often dubbed “Islamic bonds,” offer investors asset-backed returns without interest, adhering to Sharia principles.
Aldar’s green sukuk investment variant ties proceeds exclusively to sustainable projects, verified under international green bond principles.
The 2034 tranche carries a 5-year tenor with semi-annual profit distributions, while the 2035 issuance extends to 10 years, both priced against the 5-year and 10-year US Treasury benchmarks plus a spread.
Mandated banks include heavyweights like Emirates NBD Capital, HSBC, and Standard Chartered, ensuring robust distribution across GCC, Asian, and European markets.
This syndicate leverages Aldar’s established investor base, which previously snapped up the original $500 million issuance in 2022 at competitive yields.
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The Baa1 rating from Moody’s, affirmed in August 2025, reflects Aldar’s strong balance sheet, diversified revenue streams, and prudent leverage ratios.
With a stable outlook, it signals low default risk, strengthened by parent company Aldar Properties PJSC’s AAA local currency rating from local agencies. This creditworthiness is crucial in a volatile rate environment, where central banks are easing policies post-inflation peaks.
| Feature | 2034 Tranche | 2035 Tranche |
|---|---|---|
| Size | $145M | $145M |
| Maturity | 2034 | 2035 |
| Tenor | 5 years | 10 years |
| Profit Rate | Benchmark + spread (TBC) | Benchmark + spread (TBC) |
| Use of Proceeds | Green projects (e.g., solar-integrated properties) | Green projects (e.g., water-efficient developments) |
This table illustrates the structured approach, emphasising liquidity and investor appeal.
Why Green Sukuk Matter
The global sustainable Islamic finance market has surged 25% year-over-year, reaching $15 billion in issuances by Q3 2025, per Climate Bonds Initiative data.
In the UAE, such instruments align with Vision 2031, channelling capital into climate-resilient infrastructure.
Aldar’s taps come at a critical time: post-COP29, investors demand verifiable ESG impacts, and these certificates include third-party audits for transparency.
For real estate, green financing reduces operational costs by up to 20% through energy savings, per World Green Building Council reports.
Aldar’s portfolio, spanning 10,000+ acres in Abu Dhabi, benefits directly, with projects like Al Raha Beach cutting emissions via smart tech.
This issuance not only refinances existing debt but also expands funding for upcoming developments, potentially yielding 4-5% returns for sukuk holders.
Market sentiment is bullish. UAE sukuk volumes hit $20 billion in H1 2025, up 15% from 2024, driven by sovereign and quasi-sovereign deals.
Aldar’s move could catalyse more corporate green issuances, especially as oil prices stabilise around $80/barrel, freeing fiscal space for diversification.
Implications for Investors and the Broader Economy
For institutional investors, these taps offer diversification in a high-yield, low-risk asset class. Retail participants via platforms like the Dubai Financial Market gain exposure to the UAE’s growth story.
Moody’s stable outlook mitigates rate-cut uncertainties from the Fed’s September 2025 pivot.
Economically, this improves Abu Dhabi’s status as a sustainable finance hub in the Middle East, attracting FDI amid regional tensions.
Aldar’s CEO, Talal Al Dhiyebi, noted in a recent statement: “These taps reinforce our ESG leadership, delivering value to stakeholders while advancing planetary goals.”
Looking ahead, expect pricing roadshows in October 2025, with final allocations by month-end. As green sukuk evolve, Aldar’s initiative sets a benchmark for blending faith-based finance with climate action.
Aldar Investment Properties’ $290 million sukuk taps exemplify innovative capital markets at work. Rated Baa1 Stable, this reopening of 2034/2035 GTCs not only funds green ambitions but also fortifies investor confidence in UAE real estate.
For those eyeing sustainable opportunities, it’s a tap worth watching.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
