Dar Al-Arkan Real Estate Development Company (DAAR) has announced repayment of its Sukuk II, which is due on Monday (July 16), and amounts to SR 3.75 billion. DAAR transferred the total principal sum to Deutsche Bank (the principal paying agents) on Thursday and the sukuk account holders will receive funds on Monday, a company press release said.
This second sukuk was part of DAAR's Islamic structured debt program (Sukuk program), initiated in 2007. The aim of the program was to provide high quality long-term external financing to complement the company's robust internal cash flow at a time of strong growth in the Saudi real estate market. In the last five years, an extremely challenging period for the international debt markets, DAAR has successfully issued four sukuk (3 international, one domestic) raising a total of SR 8.4 billion. Of this, 2 sukuk totaling SR 6 billion have been repaid on time and satisfying all obligations, representing 71.4 percent of DAAR's sukuk program.
The Islamic Sukuk Program has aided the company in the implementation of the company's various projects over the Kingdom. DAAR provided more than 16,000 residential units, which contributed in fulfilling the residential demand in Saudi Arabia.
Dar Al-Arkan's sukuk program has attracted many high-profile international and local investors. Sukuk II drew a diversified investor base at both, global and regional levels. International investors included sovereign, pension and investment funds as well as financial institutions dispersed across the Middle East, America, Asia and Europe.
Furthermore, the sukuk have enjoyed active support from prominent local financial institutions and investment funds. In addition to broadening the investor base and raising the profile internationally, the sukuk investors have provided DAAR with financial flexibility and liquidity during a period of required investment in its projects and the medium term future of the business.
Dar Al-Arkan sukuk have been listed in different international markets including the UAE, Bahrain (BSE), UK (LSE) and Malaysia (Labuan SE). Consequently, DAAR has successfully met and complied with the highest standards of corporate governance and disclosure prevailing in these international markets.
Dar Al-Arkan would like to thank its investor base, specifically all the sukuk-holders who participated in this transaction for placing their trust in Dar Al-Arkan, its board and its management.
Dar Al-Arkan to repay SR 3.75 billion Sukuk II
Dar Al-Arkan to repay SR 3.75 billion Sukuk II
Growing pressure on Arab banks amid complex cross-border contracts, legal risks
DAMMAM: Arab banks — numbering around 520 this year — are facing mounting challenges, led by the growing complexity of cross-border banking contracts and rising legal risks tied to modern financial products, Wissam Fattouh, secretary-general of the Union of Arab Banks, told Al-Eqtisadiah.
Fattouh said addressing these challenges, driven by global economic and financial shifts, requires Arab banks — whose combined assets exceed $5.5 trillion — to strengthen risk management, continue structural reforms, and expand cooperation with foreign banks and financial institutions in line with the nature of global financial markets.
He noted that the “Certified International Arbitrator” credential offered by the UAB to Arab banks is one of the professional tools supporting governance in banking transactions and providing effective, specialized alternatives to traditional litigation, particularly in cross-border disputes.
Growing complexity of financial products and services
Fattouh said the certification represents a specialized professional program aimed at preparing qualified banking and legal professionals to handle international commercial and banking disputes, particularly those linked to the financial sector, as financial products and services become more complex, regulations tighten, and global compliance requirements increase.
In November, the UAB told Al-Eqtisadiah that the assets of 11 Saudi banks included among the 100 largest Arab banks last year, accounted for 24 percent of the total, reaching $1.1 trillion out of $4.5 trillion.
The top 10 Arab banks were led by Qatar National Bank, followed by First Abu Dhabi Bank, Saudi National Bank, Emirates NBD, Al-Rajhi Bank, Abu Dhabi Commercial Bank, National Bank of Egypt, National Bank of Kuwait, Riyad Bank, and Kuwait Finance House.
Fattouh said Arab banks have demonstrated a clear ability in recent years to withstand global economic shocks, supported by solid capitalization and liquidity levels, as well as a relative improvement in asset quality, strengthening the sector compared with several other emerging markets.
Betting on continued development of regulatory frameworks
Fattouh expects the Arab banking sector to continue playing a pivotal role in financing productive sectors, supporting small and medium-sized enterprises, and contributing to funding the transition toward a green economy, as well as advancing digital transformation across Arab economies.
He stressed that this role depends on the continued development of regulatory frameworks and stronger risk management, particularly amid rising cyber risks, compliance challenges, and global market volatility.
He added that digitalization has become essential for improving operational efficiency, noting that the UAB will focus in 2026 on enhancing dialogue between Arab banks and regulators, supporting the development of banking and financial policies, and contributing to regional financial stability.
He further said that the Union also plans to organize specialized training programs in risk management, compliance, digitalization, and finance.
