AMLAK Finance, a unit of Dubai's property group Emaar, said on Sunday it will issue a mortgage-backed 500 million dirham ($136 million) Islamic bond.
"The funds raised by the Sukuk (bond) will be used to expand AMLAK's rapidly growing home finance business. We have already approved in excess of 2.3 billion dirhams in mortgage finance to our customers," the firm said in a statement.
It did not say when the bond would be issued or give further details. Islamic bonds pay no direct interest, considered usury by Muslims.
Emaar, majority-owned by the Dubai government, is developing residential and commercial real estate projects in Dubai, the Gulf's tourism and trading hub. Emaar was the first firm in the UAE to allow foreigners to buy shares.