For UAE businesses that have outgrown rented premises or want to invest in commercial real estate as an asset, a commercial mortgage can be the right financing solution. Commercial property finance in the UAE has evolved significantly — with a range of products available to UAE nationals, expatriates, and corporate entities.
How Commercial Mortgages Work in UAE
A commercial mortgage is a loan secured against commercial real estate — offices, retail units, warehouses, or industrial property. Loan-to-value (LTV) ratios for UAE commercial properties typically range from 50-75%, meaning you need a 25-50% deposit.
Interest rates on UAE commercial mortgages are typically floating — linked to EIBOR plus a margin. Fixed-rate options for defined periods (3-5 years) are available with some banks. Islamic finance structures are Sharia-compliant alternatives.
Eligible Properties and UAE Free Zone Considerations
Most UAE commercial banks provide mortgages on completed commercial properties in major UAE cities — Dubai, Abu Dhabi, Sharjah. Properties in designated freehold zones are more straightforward to mortgage than properties in non-freehold areas.
For free zone companies, property ownership rights depend on the specific free zone — DIFC and ADGM allow property ownership within the free zone. Under-construction properties require development finance rather than conventional mortgages.
Documents Required for a UAE Commercial Mortgage
Required documentation: company trade licence and incorporation documents; 2-3 years of audited financial statements; 6-12 months of bank statements; details of the property to be purchased; evidence of deposit funds; and shareholder personal financial information.
The bank will also commission an independent property valuation — the cost of which is typically borne by the borrower. Ensure the property's current valuation supports the proposed LTV before investing significant time in the application process.
How to Get the Best Commercial Mortgage Terms
Commercial mortgage terms vary significantly across UAE banks — in both the interest rate margin and the fees charged. Shopping the market across multiple banks, presenting a well-prepared application, and demonstrating strong business financials all improve your terms.
Gulf Oasis Commercial Brokers acts as an independent commercial mortgage broker — presenting your requirement to multiple UAE banks simultaneously and negotiating terms on your behalf.