Abu Dhabi’s Mubadala Development Company has approached banks to raise a $1.2bn loan for the development of the Sowwah Square project in the emirate.

Mubadala appointed the UK’s Royal Bank of Scotland to act as financial adviser on the loan, with an expected tenor of seven years. It has been conducting a market sounding exercise with potential lenders over the summer.

Bankers close to the deal say the final size and tenor of the deal will depend on market demand.

Sowwah Square is a key part of the Sowwah Island development, which is a major component of Plan Abu Dhabi 2030, the cities masterplan. Once developed, it will contain the Abu Dhabi Securities Exchange headquarters, several office towers and two five-star hotels.