loader-img
overlay-circle

Search DIB

overlay-circle
Branches & ATMs Contact Us
chat-avatar
Fatima from DIB
Just now

Looks like you may be taking time to decide. May I help you with something?

Reply > No Thanks

Diminishing Musharaka

  • Full Insurance
    In Bank's Favor
  • Simple
    Documentation
  • First-class
    Property & Land Mortgage Options
Find a branch

Diminishing Musharaka

what-is-diminishing-musharaka-520x520

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

what-is-diminishing-musharaka-390x220

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..

Show More

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

Show More

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

Show More
09 December 2018

Dubai Islamic Bank triumphs at Islamic Business and Finance Awards 2018

25 November 2018

DIB Crowned World’s Strongest Islamic Retail Bank 2018

10 October 2018

Dubai Islamic Bank Group 9 Month Financial Results for the period ended September 30, 2018

26 September 2018

DIB's Double Your Salary Promotion Brings Joy To More Than 100 New Customers

30 July 2018

Dubai Islamic Bank celebrates next generation of leaders

22 July 2018

Dubai Islamic Bank & Emirates Skywards soar to new heights launching co-branded credit cards

18 July 2018

Dubai Islamic Bank Group 1st Half 2018 Financial Results

24 June 2018

DIB Champions Customer Happiness With 9th Double Your Salary Draw

18 June 2018

A Fresh New Look to the World’s Oldest Islamic Bank

11 June 2018

Investors Flock to DIB Capital Raising

27 May 2018

Dubai Islamic Bank receives two prestigious ISO certifications

15 May 2018

DIB stands out at Banker ME Industry Awards

01 May 2018

Dubai Islamic Bank honored by Dubai Service Excellence Scheme for the widest implementation of Happiness Meter

18 April 2018

Dubai Islamic Bank 1st Quarter 2018 Financial Results

25 March 2018

Dubai Islamic Bank’s ‘MyHome’ is set to change UAE home finance market

14 March 2018

Dubai Islamic Bank shines again with twelve distinctive accolades at Islamic Finance News Awards

13 March 2018

Dubai Islamic Bank participates in 18th Careers UAE Exhibition

04 March 2018

DIB wins ‘Best Sukuk House’ at EMEA Finance Middle East Banking Awards for Second Consecutive Year

22 February 2018

Dubai Islamic Bank hosts Annual General Meeting

19 February 2018

DED and DIB ‘Consumer Card’ recognized by Visa for successful card program

Thanks, we will get in touch with you shortly.