Commercial Mortgage

Financing for offices, retail units, warehouses and whole buildings — for self-use, investment, refinancing or releasing equity from a property you already own. Commercial lending carries different rules from residential at almost every step.

Self-employed / business owner: the company is usually the borrower. Typical requirements — UAE company trading for at least 2 years, 12 months of company bank statements, VAT returns, Corporate Tax returns, an audit report, and active business operations with sufficient turnover to service the loan.

Salaried client: a salaried UAE resident can also get a commercial mortgage without owning a company. Starting point is a minimum salary of AED 25,000/month, ideally paid via WPS, with the employer being an established UAE company. Banks typically review around 6 months of salary history — relevant to prepare a client well before a commercial handover date.

For salaried clients, maximum DBR is around 50% of gross income, minus existing liabilities (personal loans, car loans, credit cards). Age also affects the maximum term and therefore the maximum loan amount. Illustrative example: AED 25,000 salary, no existing debt, a younger borrower and a 25-year term can indicate a loan of up to around AED 1.9M — an example, not a guaranteed calculation.

Banks generally do NOT finance commercial property while it is still off-plan — this is different from residential off-plan products. Financing typically becomes possible once the property is ready and the Building Completion Certificate (BCC) is issued. Example: an office bought off-plan with 30–50% already paid, remaining balance due at handover, BCC issued — the bank can then potentially finance the remaining payment by mortgaging the completed unit.

Against a fully paid commercial property (title deed issued, active business trading 2+ years, acceptable financials): up to around 70% of property value. The funds can go to the company account and don't have to be used to buy another property — this can be effectively uncontrolled cash-out, subject to bank policy. For comparison, residential equity release can reach up to around 80%, though the bank still assesses the underlying business for a self-employed borrower.

Banks can finance an entire building — new purchase, buyout, buyout plus equity, or pure equity release — often assessed against rental income using a multiple (around 7× annual rental income was referenced in market discussions; actual multiples depend on valuation, bank policy and underwriting). The loan can potentially be booked under an individual's name or a company, and in some structures the title may stay in the individual's name even where borrowing runs through a company.

A bank can consider income from an active UAE business, but there's a key distinction: mortgage valuation is based on the real estate itself, not the furniture, equipment, customer database or goodwill of the operating business. A property assessment (what the collateral is worth) and a business financial assessment (whether the borrower can repay) are two separate exercises.

If the property sits under a company with limited operating activity (Company A) while the client's real trading business is a separate entity (Company B), the bank may assess Company B's income to support financing on Company A's property — provided the beneficial owner is the same across both. Different owners make the structure significantly harder to finance.

Technically possible, practically very difficult — market experience suggests only around a 5% conversion rate. Typical requirements for a non-resident self-employed applicant: an overseas business trading for around 5 years, minimum turnover around USD 15M, company and personal tax returns, and audit reports. This should be positioned to clients as an exceptional case, not a standard product.