Dubai-based ETA Star Properties plans to sell Islamic bonds, or sukuk, worth up to $200 million in the first quarter of next year to fund expansion in North Africa and Europe, a company official said.

"The sukuk programme is very much on. We will sell it in the Far East, in Singapore or Malaysia. It will be in the range of $150 million to $200 million," executive director Abid Junaid told Reuters.

The firm plans to develop residential and office towers in the Russian capital, Moscow, with a value of $600 million in the first quarter of 2009, while also considering opportunities in Egypt and Morocco, he added.

"We have been diversifying and we think it's a good thing because the risk that could be found in one market do not necessarily have to affect other markets," he said.

The real estate market in the United Arab Emirates would continue to witness strong demand for the next two to three years until supply catches up with demand, with more influx of expatriates to the Gulf state expected, he said.

"There is wealth in the hands of individuals in the UAE, 75 percent of people buying our properties in the UAE are paying from their own resources," he said.

ETA Star Property develops $10 billion worth of real estate projects, of which $4 billion in the UAE.

The firm is currently developing over 30 million square feet of property around the Middle East and Asia, including in the UAE, Oman, Qatar, India, Sri Lanka, Pakistan and Turkey. - Reuters