Ahmed El Shall: Ijara is one of the most flexible property finance programs available & National Sukuk will continue to grow

Speaking on the National Sukuk raffle draw held on the 2nd December, Elshall spoke about the ambitions of the Bank and its change in direction. With moves to become a fully Shari'a compliant organization, Dubai Bank have launched a series of new packages with the intention of bringing to the market innovative financing packages for those who want to by property. The recently announced Ijara Real-Estate Finance package offers customers the opportunity of going through the process of owning property according to the rules and regulations of Islamic jurisprudence. The product which will be open to both Nationals and expatriates alike is expected to make it notably easier for any individual wishing to obtain property within the UAE.

'Dubai Bank's Ijara is one of the most flexible property finance programs available in the UAE today, where the repayment schedule is tailor-made to suit each particular customer's circumstances.'

With 2006 being a watershed year for the firm with the introduction of several Islamically tailored packages Elshall also confirmed that the bank are soon to release several more including Istisina and Murabaha:

'Istisna is for construction finance and Murabaha will be for existing property. The primary difference between these two products on the one hand and the Ijara on the other is that they are fixed rate financing products while Ijara is a variable rate product, where the rate is tied to a market index which ensures that the rental payments made by the customer.' said Ahmed Elshall.

One of the high profile projects Dubai Bank's Shari'a compliant packages are associated with is Skycourts Dubailand an upscale and freehold residential community in the heart of Dubailand Residence Complex. The bank will provide all buyers with Shari'a-compliant financing under highly competitive terms, including a rate of 8.5 per cent for up to 20 years.

'Ijara Mawsufa Bilthima will be used in financing buyers of units in Skycourts.' said Ahmed Elshall. 'This will afford buyers of units in Skycourts the best mortgage financing terms available from Dubai Bank in terms of profit rate, tenor, etc. and on top of that, the Bank goes farther by increasing the LTV from the maximum of 90% available to Class A projects to a whooping 95%, with only 5% payable by the buyer as down payment in cash.'

When asked about the future of the National Sukuk Program he said: 'We have no doubt that National Sukuk will continue to grow and prosper into the future supported by the awakening of the small investor who, after being burnt in the stock market, will start building his investing decisions based on fundamental analysis involving, among others, asset diversification to reduce risk. We have no doubt that Dubai Bank's name will be heard in connection with every new project that will be announced by National Sukuk in the future.' said Ahmed Elshall.