Feb. 2 (Bloomberg) -- Dar Al Arkan Real Estate Development Co., Saudi Arabia's biggest property company by market value, may issue a five-year fixed-rate Islamic bond, said a banker with knowledge of the sale.

The so-called benchmark-size sukuk may be priced to yield in the 10 percent area, said the banker, who declined to be identified before the transaction is complete. A benchmark offering is usually $500 million or more.

Riyadh-based Dar Al Arkan and other companies are building residential developments as demand for property in the kingdom increases. Saudi Arabia plans to develop 8,143 housing units in 16 cities and governorates around the country, state-owned Saudi press Agency reported in December. Dar Al Arkan said in October it will build a 7.5 billion-riyal ($2 billion) residential project in Jeddah on the Red Sea coast.

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