Islamic home finance.
Sharia-compliant property financing — Ijara and Murabaha structures, competitive profit rates, open to all nationalities.
Islamic home finance differs from a conventional mortgage in structure but not in everyday economics. Two main structures are used in the UAE: Ijara (lease-to-own) and Murabaha (cost-plus sale). The bank either buys the property and leases it to you (Ijara), or sells it to you at an agreed mark-up paid in installments (Murabaha). Either way, you end up owning the property.
The monthly payment, term, LTV and DLD process are equivalent to conventional mortgages. The rate is called a 'profit rate' instead of an 'interest rate'. Islamic banks lend to all customers regardless of religion.
Islamic home finance products
| Bank | Product | Type | Rate | Max LTV | Min salary | Effective |
|---|---|---|---|---|---|---|
| Dubai Islamic Bank (DIB)Islamic | UAE National Home Finance | Fixed 5y | 3.99% | 85% | AED 12K | — |
| Dubai Islamic Bank (DIB)Islamic | Home Finance — Ijara, 5-year fixed profit | Fixed 5y | 4.39% | 80% | AED 15K | — |
| Dubai Islamic Bank (DIB)Islamic | Home Finance — Variable | Variable | 5.15% | 80% | AED 15K | — |
Islamic home finance FAQs
How does Islamic home finance differ from a conventional mortgage?
Structure: Ijara (lease-to-own) or Murabaha (cost-plus sale) instead of an interest-bearing loan. Practically: monthly payment, term and LTV are equivalent. The 'rate' is called a 'profit rate'. DLD handles both the same way.
Can non-Muslims take an Islamic mortgage?
Yes. Islamic banks lend to all customers regardless of religion. Many expat residents choose Islamic providers when their pricing is competitive.
Which Islamic banks lend in Dubai?
Dubai Islamic Bank (the original), Abu Dhabi Islamic Bank, Emirates Islamic, Sharjah Islamic Bank, Ajman Bank. DIB has the largest Islamic mortgage book.