Dubai Islamic Bank (DIB) has launched a new home finance product for customers buying eligible freehold properties from developers across the UAE while the projects are still under construction.
The Shariah-compliant facility is designed to cover remaining payments to developers as construction milestones are reached, until the property is handed over.
Payment structure
Under the new Off-Plan Home Finance, customers pay only the profit component during the construction period. Payments increase as DIB releases funds to developers according to the agreed construction milestones.
The full monthly instalment, including principal and profit, starts when the property is handed over or 24 months after the finance is taken, whichever comes first.
The facility provides financing of up to 50% of the property’s value and is available to eligible UAE nationals, residents and non-residents, including existing DIB customers, subject to the bank’s eligibility requirements.
DIB plans partnerships
Sanjay Malhotra, Chief Consumer Banking Officer at DIB, said: “The UAE’s real estate sector continues to reflect the strength of the national economy, supported by long-term demand, world-class developments and a clear agenda for sustainable growth. As customer preferences evolve, especially within the off-plan segment, home finance must also become more flexible, transparent and aligned with how people buy property today. Our new Off-Plan Home Finance proposition is designed to support customers through the construction journey by easing financial pressure in the early stages and aligning payments with developer milestones. This reflects DIB’s continued focus on delivering Shariah-compliant solutions that are practical, customer-centric and connected to the real needs of the market.”
DIB is also exploring partnerships with UAE developers to expand access to off-plan home finance for major freehold projects. The bank said these collaborations are intended to simplify the financing process for buyers while supporting developers during the construction phase.
The launch comes amid continued demand for off-plan properties in the UAE, driven by population growth, investor activity and demand from local and international buyers.
tanvir@dubainewsweek.com
