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Abu Dhabi-listed Sorouh Real Estate is seeking to borrow more than $1 billion from local and international banks to finance new real estate projects, its chief executive said on Tuesday.

The value of Sorouh's projects could triple to 120 billion dirhams ($32.68 billion) in the next five years, from about 40 billion dirhams now, Mounir Haidar told Reuters on the sidelines of a real estate exhibition in Abu Dhabi.

"We are talking to international and local banks to raise over $1 billion for our projects," Haidar said.

"It could be a mix of conventional loans, sukuks or something else. We are considering various options but nothing is finalised yet," he said, declining to name the banks.


Abu Dhabi, which has more than 90% of the oil reserves of the UAE, is keen to wean its economy off energy exports partly by allowing foreigners to invest in property under 99-year leases.

"We have a land bank which is easily between 75 billion to 100 billion dirhams and we expect to develop projects of at least 120 billion dirhams in five years," Haidar said.

Sorouh is developing the 25 billion dirham Shams Abu Dhabi project.

Abu Dhabi developer Aldar Properties plans to invest $50 billion in Abu Dhabi real estate projects in the next five to 10 years.

Shares of Sorouh, which opened up to foreign investment earlier this year, surged 9.88% on Tuesday.

 
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