Construction funding supports the building of residential or commercial properties by providing financing based on project stages. Below is the typical process for obtaining construction funding:
Income & Employment: Minimum monthly salary of AED 10,000 for expats, AED 5,000 for UAE nationals
Credit Score: Assessed through Al Etihad Credit Bureau (AECB) — good credit history is essential
Age: Between 21 and 65 years at loan maturity
Apply for pre-approval to estimate your borrowing capacity
Bank reviews financial health and may assess project feasibility
Hire a licensed contractor experienced in your type of project
Obtain a detailed construction plan and cost breakdown (labor, materials, permits, contingencies)
Submit a formal construction funding application with contractor’s plan and costs
Provide all required documentation (see below)
Bank conducts valuation of land and proposed construction to confirm market value and compliance with regulations
Bank issues loan offer detailing amount, interest rate, repayment terms, construction timeline, and other key terms
Review and sign loan agreement specifying terms and disbursement schedule
Funds typically disbursed in stages aligned with construction milestones
Stage payments released upon completion of milestones (e.g., foundation, structure, roofing)
Independent surveyor appointed to verify progress before releasing funds
Remaining funds disbursed after final inspection
Loan converts into a mortgage with monthly principal and interest payments
Emirates ID (valid copy)
Passport copy
Salary certificate (income, job title, employment length)
Bank statements (last 3–6 months)
Land ownership documents (title deed)
Construction plan & cost breakdown from contractor
Project approvals and permits from local authorities
Builder’s license
Marriage certificate (if applicable)
Property valuation report
Emirates ID (valid copy)
Passport copy with UAE residence visa
Salary certificate
Bank statements (3–6 months)
Land ownership documents (title deed)
Construction plan & cost breakdown
Project approvals and permits
Builder’s license
Credit report from AECB
Marriage certificate (if applicable)
Property valuation report
Self-employed: Business license, audited financial statements, tax returns, proof of income
Down payment proof
Home or construction insurance
Loan-to-Value (LTV): Up to 80%; minimum 20% down payment required
Interest Rates: Fixed or floating based on market conditions
Disbursement Schedule: Funds released in stages linked to milestones
Construction Timeline: Usually 12–24 months to complete
Insurance: Ensure construction and property insurance coverage
How much can I borrow?
Up to 80% of the total construction cost; 20% down payment required.
Can I build residential and commercial properties?
Yes, if the project meets bank requirements.
What if I’m self-employed?
Additional documents like business license and tax returns will be needed.
How is the loan disbursed?
In stages after independent verification of completed milestones.
What happens after construction?
The loan converts into a mortgage with monthly payments covering principal and interest.
What is Equipment Financing?
Equipment financing is a business loan or lease designed to help companies acquire commercial equipment such as machinery, vehicles, IT infrastructure, or specialized tools. Typically, the equipment itself acts as collateral for the loan.
Construction & Contracting
Manufacturing & Fabrication
Medical & Dental Clinics
Logistics & Transportation
Food & Beverage (Commercial Kitchens)
Agriculture & Farming
IT & Office Infrastructure
1. Initial Consultation
We start with a free consultation to understand your needs, including:
Type of equipment required
Business profile and financial status
Estimated cost and supplier details
Pro Tip: Provide a supplier quotation or proforma invoice to speed up approval.
2. Document Collection
You’ll need to provide:
Valid trade license (Mainland or Free Zone)
Emirates ID and passport copies of shareholders
Memorandum of Association (MOA)
VAT certificate (if applicable)
Last 6–12 months of company bank statements
Audited financials or management accounts
Supplier quotation or invoice for the equipment
Existing loan statements (if any)
3. Lender Matching & Application Submission
We identify the best UAE-based banks or finance companies for your profile, then:
Prepare and submit your loan application
Coordinate with the bank’s credit team
4. Credit Review & Site Visit
Banks conduct risk and credit assessments. A site visit may be arranged to verify:
Business operations
Equipment usage
Repayment ability
5. Offer Letter & Loan Approval
Upon approval, you’ll receive an offer letter detailing:
Loan amount
Interest rate
Tenure (usually 1–5 years)
Monthly EMI
Required securities or guarantees
Note: Islamic financing options like Ijara or Murabaha may be available.
6. Agreement Signing & Disbursement
Sign the facility agreement
Loan disbursed directly to the supplier
Partial disbursement may be possible based on delivery schedule
7. Equipment Delivery & Installation
Equipment is delivered and installed
Some banks require proof of delivery before releasing final funds
8. Repayment & Monitoring
Monthly EMIs debited automatically
Early settlement options available (terms vary)
Annual reviews may be conducted
| Feature | Details |
|---|---|
| Loan Amount | AED 100,000 to AED 5M+ |
| Tenure | 1 to 5 years |
| Interest Rate | Starts around 7%, varies by profile |
| Down Payment | 10–30% (some banks offer 100% finance) |
| Collateral | Usually the equipment itself |
| Finance Type | Conventional or Islamic |
Strong partnerships with top UAE banks and finance companies
High approval rates with full document support
Fast turnaround times
Customized solutions for startups, SMEs, and large enterprises
