To add details

By Hadeer Al Sayegh and Federico Macchioni

July 18 (Reuters) - UAE developer Arada is seeking to raise up to $500 million through a sukuk offering, two sources familiar with the matter said, joining other real estate firms tapping debt markets amid a construction boom in the United Arab Emirates.

The Sharjah-based company will join a group of Gulf real estate companies issuing bonds this year, aiming to tap debt markets to meet their financing needs and capitalize on the real estate boom as Gulf countries accelerate their economic diversification strategies.

The two sources, who requested anonymity because they were not authorized to speak publicly, said Arada plans to issue the sukuk next week and use the proceeds to purchase new land.

The two sources added that the final details of the offering have not yet been completed.

An Arada spokesman did not respond to a Reuters request for comment.

Arada tapped debt markets in September when it closed a $150 million financing round following the completion of its existing $400 million sukuk issuance due in 2029, which attracted strong demand and yielded a yield of over 7 percent.

The London Stock Exchange Group shows that sukuk issuers in the Middle East and North Africa region raised a record $32.2 billion during the six months ending June 30, despite uncertainty surrounding tariffs, geopolitical tensions, and oil price volatility.

Among the real estate developers that have raised funds from sukuk this year are Dubai-based Sobha and Omniat, which raised $500 million in May.

Arada was founded in 2017 by Sheikh Sultan bin Ahmed Al Qasimi, Deputy Ruler of Sharjah, and Prince Khaled bin Alwaleed bin Talal Al Saud, son of Saudi billionaire Prince Alwaleed bin Talal.

The company owns projects and assets in the UAE and expects to begin sales and construction in Australia by the end of this year.

A company presentation showed that its total revenue reached $1.1 billion last year, a 40 percent increase over 2023.

(Prepared by Mohamed Attia for the Arabic edition - Edited by Moaz Abdel Aziz)