UAE Real Estate Companies' Debt Issuance Accelerates to $6 Billion

A real estate boom is supporting the expansion of developers.

Property Boom Fuels Developer Expansion and Higher Maturities Until 2030

The UAE real estate development sector is experiencing an unprecedented wave of financing, with companies rushing to raise billions of dollars through sukuk, bonds, and private credit, capitalizing on a continuing real estate boom that has driven Dubai home prices up by more than 70% since 2019.

Dollar-denominated sukuk and bond issuances by developers are projected to reach $6 billion by 2025, more than 12 times the volume of issuances in 2021, according to Bloomberg data. The market has seen the entry of new names into the debt markets, such as Arada, Binghatti, and Omniyat, alongside major developers like Emaar, Aldar, and Damac.

This surge in issuances has led to a significant accumulation of debt maturities over the coming years, with companies expected to repay approximately $8 billion in debt by 2030. This comes as developers seek to raise more liquidity to purchase land, amid fierce competition for prime locations within the UAE.

Conversely, analysts believe the issuance boom has created an ever-increasing “wall of maturities,” warning of potential risks associated with the continuation of Dubai’s boom cycle. However, the sector’s financial fundamentals remain strong, supported by record pre-sales and an influx of wealthy international buyers, which bolsters developers’ profitability and their ability to build up cash reserves.

Bond experts confirm that investor appetite for UAE real estate remains robust, with developers offering returns that are significantly more attractive than those in developed markets.

A moderate correction

However, a slowdown in the global economy, geopolitical tensions, or a decline in oil prices could affect confidence, especially with the expansion of new supply, which prompted Fitch Ratings to predict a “moderate” correction between 2025 and 2026. Meanwhile, UBS warned of increased bubble risks in Dubai since 2022, but stressed that the city remains below the high-risk category thanks to strong rental yields and prices that remain relatively lower than other global cities.