Dubai Islamic Bank and Barclays Capital, the two leading underwriters of Islamic bonds, have led United Arab Emirates-based Nakheel Group's sale of a $3.5bn (€2.7bn) sukuk, the Middle East's largest, that comes ahead of an expected flotation of the property firm.

The real estate company is involved in construction projects worth about $30bn, including the development of three Dubai islands, and is selling the three-year convertible bond in order to part-fund its operations.