The five-year notes, to be issued on the Bahrain Stock Exchange, will have a variable rate of Ijarah return.

Mohammed Ali Alabbar, chairman of Emaar Properties said: "The company is ideally placed to move forward with financing of this kind to improve cash-flow and optimise performance.

"New projects, including Dubai Marina and The Meadows, are coming to market, and we are now pressing ahead with plans for commencement of the tallest sky-scraper in the world, Burj Dubai (Dubai Tower)."

Hussain Al Meeza, chairman, Liquidity Management Centre, (LMC), said his company will be the arranger of the $50 million deal, which will have an average life of 4.9 years, while LMC Emaar Sukuk Co. (SPV) will act as issuer for Emaar's first tranche of Ijara Sukuk financing.

"This is the first Islamic Sukuk to be arranged for a corporate regionally, which reflects the growing Islamic Sukuk market. We are delighted to have this opportunity to arrange this issue for such a prestigious corporate name like Emaar, the region's leading real estate development company," said Hussain Al Meeza.