Dubai Real Estate Finance — UAE Central Bank Regulated
Islamic vs Conventional
Mortgage Comparison
Murabaha · Ijara · Conventional — Full Cost of Ownership · 2026
Sharia-Compliant Finance
Conventional Interest-Based
CBUAE Regulated · Rates from 3.99% p.a. · April 2026
Select Dubai Area
Downtown Dubai
Freehold
Mixed-Use
DLD Regulated
Indicative Avg. Price Range
AED 2.5M – 8M
1–3 Bed Apartments · Q1 2026
Loan Parameters
EIBOR 3.65% · April 2026
Property Price
AED 2,000,000
Down Payment
20%
Loan Tenure
25 Years
Fixed Rate Period
3 Years
Murabaha Profit Rate (Fixed)
4.49%
3.50%DIB / Emirates Islamic 20267.00%
Ijara Profit Rate (Lease)
4.25%
3.50%ADIB / DIB 20267.00%
Conventional Fixed Rate
3.99%
3.50%ENBD / FAB / ADCB 20267.00%
Conventional Variable Rate (EIBOR+)
5.15%
3.50%EIBOR 3.65% + margin ~1.50%8.00%
☽ Sharia-Compliant
Murabaha / Ijara
Cost-plus sale & Lease-to-Own · No Riba · Fixed profit margin
Monthly Obligations
Monthly Payment (Murabaha)
Fixed throughout full term
—
Monthly Payment (Ijara)
Rental + ownership installment
—
Monthly Takaful (Insurance)
Sharia-compliant — est. 0.04–0.06% p.a.
—
Upfront Costs
Down Payment
Min 20% expats, 15% UAE nationals (under AED 5M)
—
Bank Arrangement Fee
Up to 1% of finance amount + 5% VAT
—
DLD Mortgage Registration
0.25% of finance amount + AED 290 admin
—
Property Valuation Fee
Bank-panel independent valuation
~AED 3,000
Total Cost of Ownership
Total Profit Paid (Murabaha)
Fixed cost — known from day 1
—
Total Amount Repaid (Murabaha)
Principal + profit
—
Total Ijara Payments
Rent + ownership components
—
Ownership Transfer
Title arrangement during term
Upfront (Murabaha)
End of term (Ijara)
End of term (Ijara)
Early Settlement
Max Early Settlement Fee
CBUAE cap — same as conventional
—
Settlement Benefit
Murabaha: profit saving possible; Ijara: rent ceases
Profit savings
Partial Prepayment
Usually permitted, reduces outstanding
Permitted
% Conventional
Interest-Based Mortgage
Fixed rate then EIBOR-linked variable · Principal + Interest
Monthly Obligations
Monthly Payment (Fixed Period)
Fixed for selected period
—
Monthly Payment (Variable)
After fixed period: EIBOR + margin
—
Life & Property Insurance
Bank-required — est. 0.04–0.06% p.a.
—
Upfront Costs
Down Payment
Same CBUAE LTV rules apply
—
Bank Processing Fee
Up to 1% of loan + 5% VAT
—
DLD Mortgage Registration
0.25% of loan + AED 290 admin
—
Property Valuation Fee
Bank-panel independent valuation
~AED 3,000
Total Cost of Ownership
Total Interest (Full Variable)
If variable rate applies post-fixed
—
Total Amount Repaid (Mixed)
Fixed period + variable period
—
Rate Change Risk
EIBOR fluctuates with Fed/CBUAE policy
Variable exposure
Ownership Transfer
Title with buyer, mortgage lien registered
Immediate (lien)
Early Settlement
Max Early Settlement Fee
CBUAE Regulation 29/2011 — applies to both
—
Settlement Benefit
Saves future interest — especially in variable phase
Interest savings
Partial Prepayment
Usually permitted subject to bank T&Cs
Permitted
Islamic Finance
Murabaha — Total Cost of Ownership
—
Over full term
Loan Amount
—
Total Profit
—
Total Fees
—
Conventional
Mixed Rate — Total Cost of Ownership
—
Over full term
Loan Amount
—
Total Interest
—
Total Fees
—
Cost Difference (Murabaha vs Conv)
—
Calculating...
Monthly Difference
—
Murabaha vs Conventional fixed
Early Settlement Cap
1% or AED 10K
Whichever is lower — CBUAE Regulation 29/2011
Max Loan Tenure
25 Years
Both Islamic & Conventional — CBUAE
DBR Limit
50%
Monthly obligations / gross income — Both types
Leading UAE Lenders — April 2026
Ijara / Islamic
Dubai Islamic Bank (DIB)
Ijara Home Finance — Al Islami
From 3.99%
Profit Rate p.a.
Murabaha / Islamic
Emirates Islamic Bank
Manzili Home Finance — Murabaha
From 4.25%
Profit Rate p.a.
Islamic Window
ADIB (Abu Dhabi Islamic)
Murabaha / Ijara Home Finance
From 4.10%
Profit Rate p.a.
Conventional
Emirates NBD
Home Loan — Fixed then EIBOR+
From 3.99%
Fixed Rate p.a.
Conventional
First Abu Dhabi Bank (FAB)
Mortgage — Fixed 1–5 yr + Variable
From 3.99%
Fixed Rate p.a.
Conventional
Mashreq Bank
Home Loan — Fixed + EIBOR Variable
From 4.10%
Fixed Rate p.a.
Outstanding Balance Over Time
Murabaha / Ijara
Conventional
Outstanding loan balance at end of each period (AED)
Important Notice 2026: All rates are indicative and sourced from lender product pages and broker market data as of April 2026. UAE mortgage rates start from approximately 3.99% p.a. for both Islamic and conventional products. The UAE Central Bank (CBUAE) caps early settlement fees at 1% of outstanding balance or AED 10,000, whichever is lower under Regulation No. 29/2011 as amended. Maximum loan tenure is 25 years. Debt Burden Ratio (DBR) must not exceed 50% of gross monthly income. LTV limits: UAE Nationals 85% (under AED 5M), Expatriates 80% (under AED 5M), Non-Residents 50–60%. EIBOR currently at approximately 3.65% following CBUAE December 2025 rate cut. Islamic products comply with Sharia via UAE Central Bank's Sharia Governance Framework and Higher Sharia Authority (HSA). Always obtain a Key Facts Statement (KFS) from your lender before committing. This tool is informational only — not financial advice. Consult a CBUAE-regulated mortgage broker.