Dubai's Sunrise Properties raises $140m in Islamic loan deal

Sunrise Properties has secured a Dh515 million ($140.22 million) Islamic loan for the development of a luxury hotel project, banking group Emirates NBD, the main arranger of the deal, said on Tuesday.

Emirates NBD, joined by Doha Bank, are providing the money to finance the Emerald Palace Kempinski Hotel project on Dubai's Palm Jumeirha group of islands.

Nver Mkhitaryan, the promoter of EPG Hotels & Resorts and Sunrise Properties Limited, said the project financing showed the banks' confidence in Dubai's tourism market.

The emirate's shopping malls and hotels, with attractions such as an indoor ski slope and aquarium, helped to boost tourist numbers last year.

The number of visitors rose 8.2 per cent to 13.2 million in 2014.

The tenure and margin on the loan were not disclosed.

The deal was done as a Murabaha, a cost-plus-profit arrangement which is one of the most popular formats for structuring Islamic loans.

 

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