Dubai Islamic Bank said on Sunday it had signed a deal to provide home loans complying with sharia to buyers of about Dh2 billion worth of properties developed by MAG Group.
Dubai Islamic, the third-biggest Gulf Arab Islamic lender by market value, did not say in a statement whether it had gotten exclusive rights to provide mortgages for MAG's residential and commercial properties in Dubai.
Unlike conventional mortgage providers, which lend to the home buyers, Islamic companies generally buy the property and then rent it back to the home owner in instalments that include their profit. (Reuters)
DIB signs home loan deal with MAG