The five-year Islamic bond was the fourth issue from Saudi Arabia's biggest property developer by market value and the first international issue from the Gulf Arab region in 2010 since Dubai World rocked global markets on Nov. 25 with plans to request a delay on repaying $26 billion in debt.

Bankers said Dar wanted to raise at least $500 million and up to $700 million. A banking source told Reuters on Thursday that the new sukuk was priced at 11 percent.

Dar wants to use proceeds from the latest sukuk to finance SR2.7 billion of capital expenditure during 2010, a prospectus for investors showed.

Standard and Poor's assigned in January a BB- to both Dar Al-Arkan's long-term rating and to its sukuk issue which it said will be for an amount in line with previous issuance.

Bankers said they expected the new bond to be used to refinance a $600 million sukuk due in mid-February.

There had been speculation the sale could be delayed due to the market turbulence caused by Greece's fiscal woes that have hit emerging markets.

The bond was also the first 144a bond issued by a Saudi firm.

There has been an increase in Gulf Arab corporate and quasi-sovereign issuers opting for 144a types of issues, which are regulated under the US securities commission allowing US investors to buy into the issue.

Deutsche Bank, Goldman Sachs and Unicorn Investment Bank arranged the sale.

The road show for the bond was held in the Middle East, Europe, Asia and the United States.

Before this issue, Dar's total borrowings rose to SR8.35 billion in 2009, up from SR7.64 billion in 2008.

The firm will have to repay SR2.7 billion before the end of 2010, its financial statements showed.

It will also need to repay SR600 million in 2011 and SR5.05 billion between 2012 and 2014.