UAE Property: Developers Raise Billions to Ride Real Estate Boom

Market Trends & Funding - UAE property developers are increasingly utilizing diverse funding tools, including Islamic bonds and private credit, to capitalize on the real estate boom [1][2] - Dollar bond and sukuk issuance from UAE property developers has surged 12-fold since 2021, reaching $6 billion [2] - Developers are primarily using these funds to acquire prime land locations, driven by a property price rally of up to 70% since 2019 [2][3] Risk Assessment & Sustainability - A potential "wall of maturities" is building, particularly from new issuers, raising concerns about future repayment capabilities [4] - While fundamentals are considered strong with low leverage and high profit margins (40%+), the sustainability of the boom is questioned due to potential oversupply in the coming years [3][4][6] - Developers are experienced in managing supply and market fluctuations, mitigating immediate concerns about the boom's sustainability [6][7] Investor Landscape - The investor base is expanding, with sukuk attracting different investors than traditional bonds, and some developers exploring IPOs [4][5] - Market is experiencing fatigue from numerous issuers tapping the same markets, potentially leading to more expensive pricing [7]