DUBAI: Arada Developments, the largest developer in the United Arab Emirates' Sharjah, gave initial price guidance of around 8.25% for five-year Islamic bonds, a document showed on Tuesday.

The issuer's debut sukuk sale, expected to close later on Tuesday, would be the first public dollar bond sale out of the Gulf since late March, when the Sharjah government raised $750 million, also with sukuk.

Arada is 40% owned by Basma Group, which is owned by Sharjah's deputy ruler, and 60% held by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family.

The company touted "proven support from the government and regulatory authorities" in a presentation for investors viewed by Reuters. That included a guarantee for a loan of up to $436 million, flexible payment plans and premium land allotment, the presentation said.

Dubai Islamic Bank, Emirates NBD Capital and Standard Chartered Bank are joint global coordinators. They are joined by Abu Dhabi Commercial Bank , Ajman Bank, Al Rajhi Capital, Kamco Invest, Mashreq, Sharjah Islamic Bank and Warba Bank as joint lead managers and bookrunners, the document from one of the banks showed.

Last week, Abu Dhabi raised $300 million by tapping two existing bonds, due in 2026 and 2027, both with coupons of 3.125%. HSBC was the sole lead manager and bookrunner.

(Reporting by Yousef Saba; Editing by Jacqueline Wong and Shailesh Kuber)