Dubai Holding Real Estate has partnered with Abu Dhabi Islamic Bank (ADIB) to launch Sharia-compliant home financing in the UAE. The partnership aims to provide affordable and compliant housing options for UAE residents, catering to the growing demand for Islamic finance.
What the partnership entails
The partnership will enable Dubai Holding Real Estate to offer Sharia-compliant home financing solutions to its customers, providing them with a range of options to purchase or rent properties in the UAE. The partnership is expected to provide financing options for up to 50% of the property's value, with a maximum loan tenure of 25 years. This will enable customers to purchase properties worth up to AED 5 million, making it more accessible for UAE residents to own a home.
The partnership will also provide customers with the option to rent properties, with a rent-to-own scheme that allows customers to rent a property for up to 5 years before exercising the option to purchase. This scheme is expected to be popular among UAE residents who are looking to own a home but require more time to save for a down payment.
Why it matters for UAE residents
The launch of Sharia-compliant home financing is expected to increase the accessibility of housing options for UAE residents, particularly those who prefer to adhere to Islamic finance principles. According to a report by the Dubai Islamic Economy Development Centre, the demand for Islamic finance products in the UAE is expected to reach AED 100 billion by 2026. The partnership between Dubai Holding Real Estate and ADIB is expected to meet this demand, providing UAE residents with a range of Sharia-compliant home financing options.
The partnership is also expected to provide UAE residents with more affordable housing options. According to a report by the UAE Ministry of Housing, the average price of a property in the UAE is AED 2.5 million. The partnership between Dubai Holding Real Estate and ADIB is expected to provide financing options for properties worth up to AED 5 million, making it more accessible for UAE residents to own a home.
Supporting the UAE's Islamic finance vision
The partnership aligns with the UAE's vision to develop its Islamic finance sector, which is expected to contribute significantly to the country's economic growth. The UAE government has set a target of increasing the contribution of Islamic finance to the country's GDP to 20% by 2026. The partnership between Dubai Holding Real Estate and ADIB is expected to play a significant role in achieving this target.
Abu Dhabi Islamic Bank has been at the forefront of Islamic finance in the UAE, offering a range of Sharia-compliant products and services. The bank has a strong track record of providing financing options for large-scale infrastructure projects, including the development of the Abu Dhabi International Airport.
A digital first for UAE housing finance
The partnership is expected to digitalize the home financing process, making it more efficient and convenient for customers. The partnership will utilize ADIB's digital platform to provide customers with a range of online services, including the ability to apply for financing, track their application status, and access their account information. This will enable customers to complete the entire home financing process online, reducing the need for physical paperwork and documentation.
The partnership is also expected to provide customers with a range of digital tools and resources, including a home financing calculator and a property search engine. These tools will enable customers to easily compare different financing options and find the best property for their needs.
