Is an Islamic mortgage eligible for property investments under the Golden Visa program?

Yes, Islamic mortgages are eligible for property investments under Dubai’s Golden Visa program. Investors can finance a qualifying property using Sharia-compliant home financing from a UAE bank, provided the total investment value meets the minimum threshold of AED 2 million (approx. USD 545,000). This enables property buyers to combine mortgage financing with the benefits of long-term residency in the UAE.

Detailed Explanation

The UAE government allows investors to obtain residency through property ownership, and financing via Islamic mortgages does not disqualify applicants. Instead, eligibility depends on the property’s market value at the time of purchase and the amount paid by the buyer. Key details include:

• Minimum Investment: Properties must be valued at AED 2,000,000 or more, regardless of whether purchased outright or through Islamic financing.
• Bank Financing: Investors may secure a mortgage from an Islamic bank, with the bank and buyer acting as co-participants in ownership until the financing is settled.
• Ownership Proof: Applicants must provide title deed registration from the Dubai Land Department (DLD) showing they meet the qualifying amount.
• Property Type: The property must be freehold, completed (not off-plan), and located in a designated investment area.
• Visa Duration: The Golden Visa linked to property investment is valid for 10 years and renewable as long as ownership criteria are met.

Practical Implications for Investors

For investors preferring Sharia-compliant financing, using an Islamic mortgage provides access to both property ownership and long-term residency. However, the bank will retain an interest in the property until the financing is settled, meaning the investor must maintain regular payments and ensure the financed share is considered when applying for the visa. Investors should also budget for additional costs such as DLD registration fees, Takaful premiums, and administrative charges.

Expert Insight & Conclusion

Islamic mortgages are fully compatible with Dubai’s Golden Visa framework, making them a flexible pathway for Muslim and non-Muslim investors seeking Sharia-compliant solutions. The critical factor is not the financing method, but ensuring the property value meets or exceeds AED 2 million and is correctly registered with DLD. With this in place, investors can secure a 10-year renewable residency while benefiting from ethical financing practices aligned with Sharia law.