Construction Finance Solutions from Strategia Finance


The UAE real estate market continued to record strong growth, particularly in Dubai, with sales values and volumes reaching high levels. Conservative borrower-based controls in real estate lending continue to restrict excessive risk taking in this market.

The UAE real estate sector registered strong activity in 2022 amidst global economic headwinds and heightened uncertainty. Despite economic challenges worldwide, the UAE remains an attractive investment destination. The real estate sector represented 18.5%11 of the UAE’s 2021 real non-oil GDP, and 22% of UAE banking sector loans. Lending growth to the sector experienced modest growth, reaching 0.9% in 2022. In the residential sector, prices in Dubai increased by 17.3% in 2022, but at a slower pace than in 2021. Rents reached record levels in 2022, increasing by 26.9%, and rental yields increased to around 7.2%, according to the Central Bank of the United Arab Emirates.

Fueled by the above indicators, a lot of mega real estate developers have revealed key projects, primarily off-plan, in strategic locations in the Emirate of Dubai and this trend is expected to continue during the coming few years. Now, despite the conservative approach towards construction finance by most of the banks here, we can structure a finance solution irrespective of the size, value and location.


– Product: Construction Finance, Sharia’a Compliant available as well

– Loan Amount: Starts from AED 1,000,000

– Disbursal: Suppliers and contractors

– Finance to Value: 60% – 80%

– Cost of Finance: 2% – 4% plus relevant EIBOR

– Processing Fees: 1% – 2.5%

– Processing Time: 30 – 40 working days of fund (profits) repayment: quarterly or half-yearly

– Collateral:

– Mortgage of property to the financing bank

– Finance contract

– Security cheques


1- High finance amount

2- Commercial and Islamic finance

3- High Finance to Value (FTV) ratio

4- Low processing fee

5- Fast processing and less documentations

6- Flexible repayment frequencies (monthly, quarterly, half-yearly or yearly)

7- Shared payment contribution between the client and the financing bank,

Documents Required:

1- Full set of company’s document (company reg., partners list, passport copies, Memorandum of Articles, Board Resolution, etc.)

2- Land title deed / long lease contract

3- Company bank statement for the latest 6 months showing the IBAN

4- Proper Project / Business Study

5- Audited financials for the past two years and in-house financials for current year

6- Last six months personal and business bank statement

7- Project feasibility study

8- Drawings approved by the competent authorities

9- Building permit

10- Signed construction and consultancy / supervision contracts (if done)

11- Project payment plan

12- Bill of Quantity (BOQ) signed by the owner

13- Clearance letter from the construction company and consultant (if applicable)

14- Copy of Trade License and Memorandum of Association of both the construction company and the consultant

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