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Diminishing Musharaka

  • Full Insurance
    In Bank's Favor
  • Simple
    Documentation
  • First-class
    Property & Land Mortgage Options
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Diminishing Musharaka

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Our step-by-step plan for your business success.

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What is Diminishing Musharaka?

Diminishing Musharak is a form of partnership, which ends with one partner purchasing the entire share of the other partner’s property in that project by a redeeming mechanism, agreed by both parties.

How it works:
The bank and customer enter into a partnership for the purchase of a property, thereby having shared ownership. The bank then leases its share of the property to the customer and receives agreed rentals for the same. Periodically, the customer needs to purchase a pre-agreed percentage of the bank's property share, thereby increasing customer ownership in the property and reducing the bank's share by a similar amount. Eventually, the ownership of the entire property will pass to the customer on successful completion of the agreed lease term through a Sharia compliant sale mechanism..

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Terms Of Financing

  • Bank Participation: Maximum 50% of the property value
  • Financing Period: Up to 10 years
  • Mode of Payment: Quarterly, semi-annual or annual terms are available
  • Source of Payment: Rentals of the property

  • Bank’s Rental: EIBOR rate plus margin applied on the outstanding value of the Bank’s share in the Musharaka Property for each rental period
  • Security: First class mortgage on the land and building, post dated cheques covering installments
  • Insurance: The Musharaka property is to be fully insured in Bank’s favour
  • Qualified Assets: Residential, office buildings and villa complexes

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Documentation

With our team of skilled professionals, applying for the Diminishing Musharika finance product is simple and stress-free, with primary documents varying based on requirement. Note that requirements may be lowered in cases where additional security is provided.

Primary Documents for Individuals:

  1. Valid passport copy
  2. Completed finance application form
  3. Site plan copy
  4. Title deed copy
  5. Copy of lease contracts covering purchase of existing rental property

Primary Documents for Companies:

  1. Valid trade license copy
  2. Commercial Registry copy
  3. Partnership agreement copy (in case of partnerships)
  4. Valid passport copies of partners (in case of partnerships)
  5. Valid passport copy of authorized personnel and copy of Articles of Association defining their powers
  6. Site plan copy
  7. Title deed copy
  8. Last 3 years’ financials
  9. Copy of lease contracts covering purchase of existing rental property

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12 February 2020

Dubai Islamic Bank Full Year 2019 Group Financial Results

11 February 2020

Dubai Islamic Bank Participates in the 22nd National Career Exhibition

22 January 2020

DIB completes the acquisition of Noor Bank

18 December 2019

Shareholders of Dubai Islamic Bank approve acquisition of Noor Bank

27 November 2019

Dubai Islamic Bank Walks Home with Two Prestigious Accolades at Banker ME Industry Awards 2019

18 November 2019

Dubai Islamic Bank successfully closes landmark USD 750 million Sukuk

05 November 2019

Dubai Islamic Bank introduces “Banking in Minutes” as it enters the next decade as a Digitally Intelligent Bank

27 October 2019

Dubai Islamic Bank Shines at the Islamic Business and Finance Awards 2019

15 October 2019

Dubai Islamic Bank Group 3rd Quarter 2019 Financial Results

29 September 2019

Dubai Islamic Bank continues to Successfully Create Growth Opportunities for Emiratis

16 July 2019

Dubai Islamic Bank Group 1st Half 2019 Financial Results

10 June 2019

Dubai Islamic Bank outlines plans to acquire Noor Bank

05 May 2019

Dubai Islamic Bank named Best Performing Outlet by Dubai Service Excellence Scheme for Third Successive Year

23 April 2019

Dubai Islamic Bank 1st Quarter 2019 Financial Results

21 March 2019

Dubai Islamic Bank offers job opportunities at the Careers UAE Exhibition

11 March 2019

Dubai Islamic Bank recognized with nine distinctive honors at the 2019 Islamic Finance News Awards

07 March 2019

Dubai Islamic Bank hosts Annual General Meeting

05 March 2019

Dubai Islamic Bank and DEWA sign agreement to provide preferential profit rates on DEWA Store for financing electric vehicles

06 February 2019

Dubai Islamic Bank participates in the 21st National Career Exhibition

06 February 2019

Dubai Islamic Bank rings market-opening bell to celebrate listing USD 750 million Sukuk on Nasdaq Dubai

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