DUBAI: A property developer has started building a huge resort complex on a man-made archipelago off Dubai's coast as the emirate revives tourism and real estate projects suspended after its property market crash in 2008.
The "Heart of Europe" project, a complex of luxury hotels and villas stretching across six small islands, is expected to be completed at the end of 2016, the Kleind ienst Group said on Monday.
Lying about 5 kilometers (3.1 miles) off mainland Dubai in the Gulf, it will feature classic Italian, Spanish and German architecture as well as landscaped gardens and streets that in some cases will be lined with artificial snow, the company said.
Kleindienst, an international developer based in Dubai, declined to reveal how much the project would cost or how it would be funded, saying an announcement on this would be made next month. Local press reports have put the cost at over $800 million.
The 60-square-km archipelago, comprising over 200 islands laid out in the shape of a world map, was created from millions of tons of sand and rock. It was completed in 2008 as a way to expand Dubai's supply of beachfront property.
Until recently it looked like a costly white elephant. Most of the islands were sold to investors but Dubai's financial crisis of 2008-2010 then put plans to develop them on hold. All but a handful remain empty, baking in the sun.
Over the last couple of years, however, a flood of foreign money into Dubai has revived the real estate market and begun to repair developers' balance sheets, allowing projects to proceed.
As the first big project to go ahead in the archipelago, the Heart of Europe could encourage the development of more islands. In May 2013, Kleindienst cleared an obstacle to the project by agreeing to pay $169 million to resolve a dispute with state-owned firm Nakheel, the original builder of the archipelago.
Dubai starts work on ‘Heart of Europe’ project
Dubai starts work on ‘Heart of Europe’ project
UAE raises $150m in first 7-year Islamic treasury sukuk amid strong demand
JEDDAH: The UAE raised 550 million dirhams ($150 million) from its first 7-year Islamic treasury sukuk, part of a dual-tranche auction that drew strong investor demand and underscored growing appetite for dirham-denominated Islamic debt.
The February auction, conducted by the Ministry of Finance in coordination with the Central Bank of the UAE, attracted total bids of 5.88 billion dirhams for securities worth 1.1 billion dirhams, an oversubscription ratio of 5.3 times, according to the Emirates News Agency, also known as WAM.
The issuance comes amid rapid expansion in Gulf debt markets. Fitch Ratings said last month that the Gulf Cooperation Council’s debt capital market is expected to exceed $1.25 trillion in 2026, driven by project financing needs, economic diversification programs and government funding initiatives.
The ratings agency added that the region remains one of the largest sources of US dollar debt and sukuk issuance among emerging markets, with Islamic instruments accounting for more than 40 percent of outstanding GCC debt.
The newly introduced 7-year tranche alone generated demand of about 3.1 billion dirhams — nearly six times the issuance size — highlighting investor confidence in the UAE’s credit profile and the continued growth of its Islamic finance sector.
“The issuance forms part of the Islamic Treasury Sukuk Program for 2026, as published on the Ministry’s official website,” WAM reported.
Participation was strong across the eight primary dealers, covering both tranches maturing in May 2030 and February 2033.
The auction achieved competitive, market-driven pricing, with a yield to maturity of 3.53 percent for the May 2030 tranche and 3.779 percent for the February 2033 tranche, priced below comparable US Treasury yields at the time of issuance.
The sukuk are listed under the UAE Treasury Islamic Sukuk Program on Nasdaq Dubai, improving investor access in the secondary market, according to WAM.
The UAE’s Islamic finance and debt capital markets have continued to strengthen, with Nasdaq Dubai reporting a record year in 2025 as outstanding sukuk listings exceeded $100 billion. The growth was driven by sustained issuance from sovereign, financial, and corporate entities, alongside strong global demand for Shariah-compliant instruments.
The milestone underscores the UAE’s growing role as a regional hub for Islamic fixed-income products and reflects robust investor confidence in the country’s financial system.
