0
Sharjah Real Estate Finance · SRERD & CBUAE Regulated · 2026
Islamic vs Conventional
Mortgage Comparison
Side-by-side analysis of Murabaha, Ijara (Sharia-compliant) vs conventional interest-based mortgages. Total cost of ownership, monthly obligations, and early settlement — based on April 2026 UAE Central Bank rate data.
3.99%
Best rate from (Islamic & Conv)
25 yrs
Max tenure — CBUAE
1% / 10K
Early settlement cap
Loan Parameters
Property Price
AED 1,500,000
Down Payment
20%
Loan Tenure
25 yrs
Fixed Period
3 yrs
Rate Configuration — April 2026
☽ Murabaha
Profit Rate (Fixed — Full Term)
4.49%
DIB / Emirates Islamic — From 3.99%
☽ Ijara
Profit Rate (Lease-to-Own)
4.25%
ADIB / DIB — From 3.99%
% Fixed
Conventional Fixed Rate
3.99%
ENBD / FAB / ADCB — From 3.99%
% Variable
Conventional Variable (EIBOR+)
5.15%
EIBOR 3.65% + ~1.50% margin
Select Sharjah Area
Side-by-Side Comparison
☽ Sharia-Compliant
Murabaha / Ijara
Cost-plus sale & Lease-to-own — No Riba — Fixed profit
% Conventional
Interest-Based Mortgage
Fixed rate then EIBOR+ variable — Principal + Interest
Monthly Obligations
Monthly Payment (Primary)
Fixed vs Fixed period
—
Fixed — Full Term—
Fixed PeriodIjara Monthly (Lease)
Rental + ownership component
—
—
Variable after fixedInsurance (Monthly Est.)
Takaful vs Life/Property Insurance
—
Takaful—
Life/PropertyUpfront Costs
Down Payment
CBUAE LTV limits apply to both
—
—
Bank Arrangement / Processing
Up to 1% of loan + 5% VAT
—
—
Mortgage Registration (DLD/SRERD)
0.25% of loan + AED 290
—
—
Property Valuation
Bank-panel — required for both
~AED 3,000
~AED 3,000
Total Cost of Ownership
Total Profit / Interest Paid
Murabaha: known upfront; Conv: rate-dependent
—
Transparent—
Rate-variableTotal Amount Repaid
Principal + cost of finance
—
—
Ownership During Term
Legal title arrangement
Upfront (Murabaha)
End of term (Ijara)
End of term (Ijara)
Immediate title
Mortgage lien registered
Mortgage lien registered
Early Settlement
Max Fee (Year 5 balance)
CBUAE cap: 1% or AED 10,000 — whichever less
—
CBUAE Cap—
CBUAE CapInterest/Profit Saving (settle Yr 5)
Estimated future cost avoided
—
—
Total Cost of Ownership Summary
I
☽ Islamic — Murabaha
Total Acquisition Cost (Principal + Profit + Fees)
—
Over full term
Loan Amount—
Total Profit—
Total Fees—
C
% Conventional — Mixed Rate
Total Acquisition Cost (Principal + Interest + Fees)
—
Over full term
Loan Amount—
Total Interest—
Total Fees—
TCO Difference—Murabaha vs Conventional
Monthly Difference—Murabaha vs Conv Fixed
Early Settlement Cap1% / AED 10KWhichever is lower
Max DBR50%Monthly income — both types
Max Tenure25 YearsIslamic & Conventional
Outstanding Balance Trajectory
Loan Balance Remaining Over Time
Islamic (Murabaha)
Conventional
Early Settlement Detail
Islamic Finance — Early Settlement
Max Fee (CBUAE cap)
—
Balance at Year 5
—
Balance at Year 10
—
Profit saving if settled Yr 5
—
Murabaha: profit structure
Fixed — known from Day 1
Ijara: early exit
Rent ceases + ownership transfer
Partial prepayment
✓ Permitted
Conventional — Early Settlement
Max Fee (CBUAE cap)
—
Balance at Year 5
—
Balance at Year 10
—
Interest saving if settled Yr 5
—
Variable rate risk
EIBOR fluctuates with Fed/CBUAE
Fixed period benefit
Predictable during fixed years only
Partial prepayment
✓ Permitted (T&Cs apply)
UAE Lenders — Indicative Rates April 2026
Leading Banks — Islamic & Conventional
Updated: April 2026
| Type | Bank | Product | Indicative Rate |
|---|---|---|---|
| Ijara | Dubai Islamic Bank (DIB) | Al Islami Home Finance — Ijara | From 3.99% |
| Murabaha | Emirates Islamic Bank | Manzili — Murabaha | From 4.25% |
| Islamic | ADIB (Abu Dhabi Islamic) | Home Finance — Murabaha / Ijara | From 4.10% |
| Islamic Window | Mashreq Al Islami | Islamic Home Loan | From 4.25% |
| Conv. | Emirates NBD | Home Loan — Fixed + EIBOR Variable | From 3.99% |
| Conv. | First Abu Dhabi Bank (FAB) | Mortgage — Fixed 1–5yr + Variable | From 3.99% |
| Conv. | Abu Dhabi Commercial Bank (ADCB) | Home Loan — Fixed + EIBOR | From 3.99% |
| Conv. | HSBC UAE | Home Loan — Fixed + Variable | From 4.10% |
Sharjah & UAE — Regulatory Notes (April 2026): All mortgage rates are indicative and sourced from lender product pages and broker market data. UAE mortgage rates start from approximately 3.99% p.a. for both Islamic and conventional products as of April 2026. The UAE Central Bank (CBUAE) reduced its base rate to 3.65% in December 2025, following the US Federal Reserve. EIBOR currently sits at approximately 3.65%; conventional variable rates are EIBOR + bank margin (~1.50%). Early settlement fee cap: 1% of outstanding balance or AED 10,000, whichever is lower — under CBUAE Regulation No. 29/2011 as amended. This applies equally to Islamic and conventional products. Maximum tenure: 25 years. DBR: 50% of gross monthly income. LTV: UAE Nationals 85% (≤AED 5M), Expatriates 80% (≤AED 5M), Non-Residents 50–60%. Islamic products (Murabaha, Ijara) comply with UAE Higher Sharia Authority (HSA) and AAOIFI SS(8)/SS(9) standards. Murabaha advantage: Total profit is fixed and disclosed upfront — no exposure to EIBOR fluctuations. Conventional variable risk: Rate can change with CBUAE/Fed policy. This tool is for informational purposes only and does not constitute financial advice. Always obtain a Key Facts Statement (KFS) from your lender and consult a CBUAE-licensed mortgage broker.
