Please ensure Javascript is enabled for purposes of website accessibility
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
Request Callback 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

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

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
28 January 2025

AED 3 Million Up for Grabs in Dubai Islamic Bank’s Exclusive Rewards Campaign

20 January 2025

DIB increases its stake to 25% in Digital Bank in Türkiye

30 December 2024

Crypto.com inks Partnership with Dubai Islamic Bank

20 December 2024

Dubai Islamic Bank Relaunches 'DIB XTRA' Campaign with Exceptional Rewards and Exclusive Benefits

05 November 2024

Dubai Islamic Bank Nine Month 2024 Group Financial Results

18 October 2024

A Truly Inclusive Approach to Financing with the Launch of Dubai Islamic Bank’s ACCESS Auto Finance for People of Determination

10 October 2024

Dubai Islamic Bank Successfully Issues Additional Tier 1 Sukuk

04 October 2024

Dubai Islamic Bank Celebrates Fifth Cohort of High Potential Programme, Paving the Way for Future Leadership

25 September 2024

Dubai Islamic Bank Champions Emirati Talent and Leadership at Ru'ya Careers UAE 2024

11 September 2024

Dubai Islamic Bank pledges AED15 million to support development of the Hamdan Bin Rashid Cancer Hospital

27 July 2024

Dubai Islamic Bank Announces Instalment Deferment Facility for Impacted Customers

23 July 2024

Dubai Islamic Bank First Half 2024 Group Financial Results

22 July 2024

Dubai Islamic Bank Leads Landmark $3.25 Billion Financing Transaction for GEMS Education

16 July 2024

Dubai Islamic Bank makes dreams come true: Four lucky winners take home one year's salary

23 April 2024

Dubai Islamic Bank First Quarter 2024 Group Financial Results

20 March 2024

Moving forward together: Dubai Islamic Bank teams up with Fitze for another first – the Ramadan “Move-a-Thon”

28 February 2024

Dubai Islamic Bank Shareholders Approve 45% Dividend for 2023

27 February 2024

Dubai Islamic Bank successfully prices USD 1 billion Sustainable Sukuk

14 February 2024

Dubai Islamic Bank Launches ‘SHAMS’ Covered Card in Partnership with Visa

23 January 2024

Dubai Islamic Bank Full Year 2023 Group Financial Results

Thank You