Dubai Islamic Bank

As the leading provider of Commercial Real Estate Finance in the UAE, Dubai Islamic Bank plays a major role in supporting real estate developments, comprising construction of commercial property, residential estates and multi-storey buildings.

Key features

Market leader in the provision of Commercial real estate finance for all project types within the UAE
Unrivalled breadth of financial solutions
Competitive terms and pricing
Strictest adherence to Sharia principles

Products & Services

Terms of financing for Istisna

Istisna is a Sharia mode of financing widely used by Islamic banks and financial institutions to finance the construction of buildings, residential towers, villas and related products, and manufacturing of aircrafts, ships, machines and equipment, etc.

Terms of financing

Down Payment Minimum 25% of total construction cost (Requirement may be lowered if additional security is provided) Transaction Period Up to 10 years Mode of Payment Quarterly, Semi-annual or Annual terms are available Source of Payment Business cash flows, rentals Profit Rate Fixed throughout the financing period Security First class mortgage on the plot & building, post dated cheques covering installments Insurance Insurance policy covering the property under construction to be assigned to the Bank Qualified Assets Residential

Documentary Requirements

Individuals

1. Copy of valid passport
2. Completed finance application form
3. Copy of site plan
4. Copy of title deed
5. Feasibility study by project consultant
6. Construction/Engineering plans

Companies

1. Copy of valid Trade License
2. Copy of Commercial Registry
3. Copy of Partnership agreement (in case of partnerships)
4. Copy of Chamber of Commerce and Industry
5. Copy of valid passport of partners (in case of partnerships)
6. Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
7. Copy of site plan
8. Copy of title deed
9. Feasibility study by project consultant
10. Last 3 years' financials
11. Construction/Engineering plans

Terms of financing for Murabaha on lands

Literally, Murabaha means selling on profit. Dubai Islamic Bank will purchase a plot of land as per the customer's specifications and his promise to purchase it from the bank on deferred payment basis. For this purpose, a Murabaha agreement is signed. The ownership of the land is transferred to the customer in lieu of a security/guarantee from you to ensure prompt and timely payment of the installments due from you as per the Murabaha terms.

Down Payment Minimum 50% of the purchase price (Requirement may be lowered if additional security is provided) Transaction Period Up to 5 years Mode of Payment Quarterly, Semi-annual or Annual terms are available Source of Payment Business cash flows, rentals from other properties Profit Rate Fixed throughout the financing period Security First class mortgage on the land, post dated cheques covering installments

Documentary Requirements:

Individuals

1. Copy of valid passport
2. Completed finance application form
3. Copy of site plan
4. Copy of title deed

Companies

1. Copy of valid Trade License
2. Copy of Commercial Registry
3. Copy of Partnership agreement (in case of partnerships)
4. Copy of valid passport of partners (in case of partnerships)
5. Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
6. Copy of site plan
7. Copy of title deed
8. Last 3 years' financials

Terms of financing for Murabaha on Buildings

Literally, Murabaha means selling on profit. Dubai Islamic Bank will purchase a plot of land as per the customer's specifications and his promise to purchase it from the bank on deferred payment basis. For this purpose, a Murabaha agreement is signed. The ownership of the land is transferred to the customer in lieu of a security/guarantee from you to ensure prompt and timely payment of the installments due from you as per the Murabaha terms.

Down Payment Minimum 25% of the purchase price (Requirement maybe lowered if additional security is provided) Transaction Period Up to 10 years Mode of Payment Quarterly, Semi-annual or Annual terms are available Source of Payment Rental income, Business cash flows Profit Rate Fixed throughout the financing period Security First class mortgage on the land & building, post dated cheques covering installments Insurance Property financed to be fully insured in Bank's favor Qualified Assets Residential, Office Buildings & Villa Complexes

Documentary requirements

Individuals

1. Copy of valid passport
2. Completed finance application form
3. Copy of site plan
4. Copy of title deed
5. Copy of lease contracts

Companies

1. Copy of valid Trade License
2. Copy of Commercial Registry
3. Copy of Partnership agreement (in case of partnerships)
4. Copy of valid passport of partners (in case of partnerships)
5. Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
6. Copy of site plan
7. Copy of title deed
8. Last 3 years' financials
9. Copy of lease contracts

Terms of financing for diminishing Musharaka

Diminishing Musharaka is a form of partnership, which ends with the complete ownership of a partner who purchases the share of another partner in that project by a redeeming mechanism agreed between both of them. Dubai Islamic Bank will enter into a partnership with the customer for the purchase of a property, thereby having common ownership in it. Thereafter, the bank will lease their share in the property to the customer and will receive agreed rentals. Periodically, the customer will purchase a pre-agreed percentage of the bank share in the property, thereby increasing his ownership in the property and reducing the bank's share by a similar amount. The ownership of the entire property will pass to the customer upon successful completion of the agreed lease term.

Bank Participation Maximum 50% of the property value Financing Period Up to 10 years Mode of Payment Quarterly, Semi-annual or Annual terms are available Source of Payment Rentals of the property Bank's Rental EIBOR rate plus margin applied on the outstanding value of the Bank's share in the Musharaka Property for each rental period Security First class mortgage on the land & building, post dated cheques covering installments Insurance The Musharaka property to be fully insured in Bank's favor Qualified Assets Residential, Office Buildings & Villa Complexes

Documentary Requirements

Individuals

1. Copy of valid passport
2. Completed finance application form
3. Copy of site plan
4. Copy of title deed
5. Copy of lease contracts covering purchase of existing rental property

Companies

1. Copy of valid Trade License
2. Copy of Commercial Registry
3. Copy of Partnership agreement (in case of partnerships)
4. Copy of valid passport of partners (in case of partnerships)
5. Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
6. Copy of site plan
7. Copy of title deed
8. Last 3 years' financials
9. Copy of lease contracts covering purchase of existing rental property


Terms of financing for Ijara Muntahia Bittamleek (Financial Lease)

Upon the customer's promise to lease from Dubai Islamic Bank, the bank purchases for itself and in its name, a property specified in the customer's promise and then lease it to the customer on terms of financial lease. The lease rent is structured in a way that at the end of the lease period, the bank's purchasing cost and profit is recovered and we transfer the ownership of the property to the customer for a nominal sale price or as a gift by a separate sale or gift contract at the end of the lease period.

Bank Participation Minimum 50% of the purchase price (Requirement maybe lowered if additional security is provided) Financing Period Up to 10 years Mode of Payment Quarterly, Semi-annual or Annual terms are available Source of Payment Rentals of the building in question Profit Rate Fixed throughout the financing period Security Post dated cheques covering installments Qualified Assets Residential, Office Buildings & Villa Complexes

Documentary Requirements:

Individuals

1. Copy of valid passport
2. Completed finance application form
3. Copy of site plan
4. Copy of title deed
5. Copy of lease contracts (covering purchase of existing rented property)

Companies

1. Copy of valid Trade License
2. Copy of Commercial Registry
3. Copy of Partnership agreement (in case of partnerships)
4. Copy of valid passport of partners (in case of partnerships)
5. Copy of valid passport of authorized personnel and copy of Articles of Association defining their powers
6. Copy of site plan
7. Copy of title deed
8. Last 3 years' financials
9. Copy of lease contracts (covering purchase of existing rented property)

Click here to enquire more about Dubai Islamic Bank