Rent constitutes a significant monthly expense for UAE residents, often dominating their budgets. Over the past few years, rents have steadily increased across the country due to a surge in foreign workers and economic expansion.
In the last quarter of 2023, apartment rents in Abu Dhabi rose by 2.0% year-on-year, while villa rents increased by 0.8%. Similar upward trends were observed in Dubai and the Northern Emirates.
To address the challenge of rising rents, several local banks now offer ‘rent in advance’ facilities to assist their customers.
Dubai Islamic Bank
The largest Shariah-compliant lender in the UAE, provides this service through Al Islamic Finance for residents leasing new accommodations.
HSBC
Offers a ‘Rent Loan’ option with an annual percentage rate starting from 7.24%, tailored for Premier customers transferring their salaries to HSBC-listed companies.
Ajman Bank
Provides rent assistance through its ‘Service Ijarah’ scheme, a Shariah-compliant program allowing customers to use services for a predetermined period in exchange for agreed-upon rent.
First Abu Dhabi Bank
Enables tenants to manage rent payments using their credit cards, offering interest-free payment plans.
Al Hilal Bank
‘Rent Finance’ scheme supports tenants during financial hardships, offering payment tenures of up to one year with competitive rates, provided certain criteria are met.
These initiatives aim to alleviate the financial strain of renting in the UAE and provide practical solutions for residents facing rising housing costs.
