DIB opens 50% off-plan finance to non-residents in Shariah-compliant push

Dubai Islamic Bank has launched a Shariah-compliant off-plan home finance proposition offering funding of up to 50% of property value to eligible UAE nationals, residents and non-residents — a notable extension of construction-phase financing to overseas buyers in a segment where most banks restrict lending to UAE residents.

The product, branded DIB Home Finance – The Smart Way to Buy Off-Plan, provides finance for freehold properties purchased from leading developers during the under-construction phase, with repayment structured to ease cashflow pressure during the build period.

Under the proposition, customers pay only the profit component during construction, with the amount increasing progressively as DIB releases tranche payments to the developer in line with the agreed milestone plan. The full monthly instalment — comprising both principal and profit — begins only upon property handover or within 24 months of taking the off-plan home finance, whichever comes first. This deferred principal structure differentiates the product from conventional construction-phase mortgages and aligns borrower obligations with the developer's payment plan, reducing the dual burden of financing costs and developer instalments during the build.

The 50% finance-to-value ceiling mirrors regulatory constraints for off-plan mortgages. The proposition offers finance of up to 50% finance-to-value and is available to eligible UAE nationals, residents and non-residents, including DIB's existing customers across diverse segments, subject to meeting the applicable eligibility criteria.

DIB's decision to extend eligibility to non-residents marks a structural shift in off-plan finance appetite. Most UAE banks offering construction-phase mortgages limit products to residents only, citing documentation complexity, income verification challenges and higher default risk for overseas buyers. Off-plan finance for non-residents has historically been confined to developer payment plans rather than third-party bank lending.

Sanjay Malhotra, Chief Consumer Banking Officer at DIB, stated that 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. He noted that 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. The 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, reflecting DIB's continued focus on delivering Shariah-compliant solutions that are practical, customer-centric and connected to the real needs of the market.

The launch comes as demand for off-plan property continues to play an important role in the UAE's real estate market, supported by strong investor confidence, population growth and the country's position as a leading destination for residents and global buyers. Through this proposition, DIB aims to provide greater flexibility and transparency to customers seeking to finance off-plan homes while managing their financial commitments during the construction period.

DIB is also exploring strategic collaborations with leading UAE developers to support wider access to off-plan home finance across major freehold projects. These collaborations aim to create a more seamless financing journey for customers purchasing properties during the construction phase, while supporting developers and buyers through a more integrated approach to home ownership.

The proposition's Shariah-compliant structure uses profit-sharing principles rather than interest-based lending, a mandate for all DIB retail finance products. Established in 1975, DIB is the largest Islamic bank in the UAE by assets, with group assets now exceeding US$115 billion and a network of more than 540 branches across the Middle East, Asia and Africa. DIB's ecosystem, spanning across UAE, Pakistan, Turkey, Indonesia, Kenya, Sudan and Bosnia, reaches more than 11 million customers — a reflection of its expanding scale and trusted franchise.

The off-plan finance market operates under tighter constraints than ready-property lending. Banks typically require projects to reach minimum construction completion thresholds before approving mortgage drawdown, and funds are released directly to developers in tranches tied to verified milestones rather than disbursed to buyers upfront. The new product provides customers with an integrated Shariah-compliant financing solution that helps facilitate remaining tranche payments linked to the developer's milestones, up to property delivery.

DIB's move to open construction-phase finance to non-residents introduces a new liquidity channel for overseas buyers who have historically relied on developer payment plans or offshore financing to fund off-plan purchases. Whether other UAE banks follow with similar non-resident off-plan products will depend on risk appetite, regulatory clarity on cross-border income verification and the performance of DIB's initial cohort — a test case for construction-phase credit risk in a buyer segment with no UAE employment or residency anchor.

The launch reinforces DIB's commitment to supporting customers with innovative, Shariah-compliant financial solutions that respond to evolving lifestyle needs and market dynamics. It also reflects the bank's broader role in enabling responsible home ownership and contributing to the continued growth of the UAE's real estate ecosystem.