Modon and ADIB launch 75% off-plan financing for Abu Dhabi construction phase

Modon has signed a Memorandum of Understanding with Abu Dhabi Islamic Bank to introduce Abu Dhabi's first-of-its-kind home financing solution for off-plan property purchases, announced on 9 July 2026. For the first time in the emirate, eligible homebuyers will be able to access up to 75% off-plan home financing through ADIB—a structural departure from the UAE mortgage market, where off-plan loan-to-value ratios are typically capped at 50% and disbursement is contingent on meaningful construction progress.

The mandate is narrow but consequential. Available exclusively for future Modon developments, the solution enables customers to secure homes earlier in the development cycle through a more seamless purchasing journey. Under the offering, customers can secure an off-plan property through a structured payment plan comprising a 15% payment during the construction phase and a further 5 to 10% payment upon handover. ADIB will finance up to 75% of the property's value subject to customers' eligibility during off-plan and construction, providing customers with access to funding throughout their homeownership journey.

That 75% figure warrants scrutiny. Across the broader UAE market, banks rarely mortgage off-plan during construction, and when they do, off-plan financing typically runs at up to 50% loan-to-value, with buyers funding the rest. Banks typically require the project to be a certain percentage complete—often 35% or more—and the buyer to have already paid a meaningful share of the price. The Modon–ADIB structure compresses that threshold: buyers contribute as little as 15% during construction, with the bank stepping in from the outset rather than at mid-build.

The timing is deliberate. The MoU was signed the same week Modon posted the largest single-project residential launch in UAE history. Modon set a new benchmark for the UAE real estate market with the launch of Hudayriyat Golf Estates on Hudayriyat Island, Abu Dhabi; within days of launch, the community achieved record-breaking sales exceeding AED 13 billion. Comprising an exclusive collection of golf mansions, villas, and townhouses, the development saw 1,700 of its residences sold after few days of launch. The gated community attracted strong interest, with 15% being non-UAE resident, and 81% being new customers to Modon.

That absorption rate—1,700 units, AED 13 billion, within days—signals structural tightness in Abu Dhabi's primary market, particularly for golf-front and island typologies. In 2025 alone, the emirate recorded over 22,400 residential transactions, valued at AED 73.2 billion. Modon surged from 485 transactions in 2024 to 2,700 in 2025, capturing a 16.8% market share—a 457% year-on-year increase. The financing partnership extends that momentum by lowering the equity threshold for future launches.

In October 2025, L'imad Holding—a company wholly owned by the Abu Dhabi government—acquired an 84.76% majority stake in Modon, reinforcing the sovereign-backed character of the platform. Modon is an international holding company, headquartered in Abu Dhabi, and listed on the Abu Dhabi Securities Exchange. ADIB is a leading bank in the UAE with AED 287 billion in assets, and the bank was established in 1997, with shares traded on the Abu Dhabi Securities Exchange.

The economics for buyers hinge on eligibility and cost of capital. ADIB has not disclosed the profit rate or margin structure for the 75% facility, nor the minimum salary or residency criteria. In the broader Abu Dhabi mortgage market, UAE residents with a salary above the bank's minimum threshold and a UAE bank account access the standard mortgage market on the same terms as UAE nationals—just with a slightly lower maximum LTV: 75% versus 80%. Off-plan products, however, typically skew premium: using Mashreq's 2026 product as a representative example, minimum salary runs around AED 40,000 per month for salaried buyers, AED 50,000 per month for self-employed.

The Modon–ADIB structure shifts the financing burden from buyer to bank during the construction window, a period when most off-plan purchasers rely exclusively on developer payment plans. On a AED 1,500,000 property, the developer payment plan buyer paid approximately AED 85,000 less in total financing costs over a four-year period compared to a buyer who used a bank mortgage from day one—driven by the absence of interest during the construction phase. The new facility inverts that calculus: buyers who qualify for the 75% LTV will carry financing cost from the outset, but gain liquidity and the option to deploy capital elsewhere.

Bill O'Regan, Group Chief Executive Officer of Modon Holding, said Abu Dhabi continues to strengthen its position as one of the world's most attractive destinations for investment and long-term growth, creating high demand for new real estate launches. Mohamed Abdelbary, Group Chief Executive Officer of ADIB, said through the partnership, ADIB is introducing a first-of-its-kind offering in Abu Dhabi that transforms the home-buying experience by providing financing throughout the property development journey.

The partnership is exclusive to Modon's future pipeline, which spans Hudayriyat Island and Al Reem Island. Modon focuses its core residential development on two prestigious island destinations: Hudayriyat Island and Reem Island. The company's residential developments on Hudayriyat Island include Al Naseem Community, Bashayer, Hudayriyat Golf Estates and several collections under the Nawayef masterplan. The financing solution does not extend to secondary-market Modon inventory or to other Abu Dhabi developers.

For UHNW allocators, the thesis is straightforward: the 75% facility lowers the equity requirement for access to sovereign-backed, island-precinct inventory in a market where primary-launch absorption has compressed to days. The structural constraint remains eligibility—ADIB has not published underwriting criteria, and the facility is subject to Sharia compliance, which may exclude certain buyer profiles. The catalyst is timing: Modon's 2026 pipeline will be the first to benefit, and early-stage reservations will lock in pre-appreciation pricing with minimal equity deployment.