FAB Islamic FAB Islamic Home Finance (Ijarah)
Islamic Home Financing in Dubai
Ijarah home finance with fixed profit rates from 3.99% (1-3 years) and 4.19% (5 years) for customers bundling a salary transfer and FAB Islamic credit card, or 4.24%-4.44% without; after the fixed window the rate reverts to 3-month EIBOR plus margin. First-time buyers can reach 85% financing, buyout customers get 180-day (nationals) or 120-day (expats) grace periods with processing, valuation and early-settlement-fee refunds, and partial settlement of up to 25% annually is free in the variable period. A Green Home variant discounts the 5-year fixed rate by 0.25% and halves the processing fee, and non-resident foreign investors can finance up to 50% of UAE property up to AED 10 million.
FAB plays the bundling game hard: 3.99% fixed is the price of moving your salary and carrying its card, and on those terms it matches SIB's headline while adding the most generous buyout package in the market (fees refunded, 180 days before the first installment). The green discount is a genuine first, worth 0.25% for life of the fixed period on efficient homes. Read the reversion margin before signing, because the variable-period economics, not the teaser, decide total cost over 25 years. For switchers consolidating a conventional mortgage into halal finance, this is the strongest documented offer in the UAE.
Pros
- 3.99% bundled fixed matches the sharpest published Islamic home rates in the UAE
- The buyout economics (fee refunds plus 180-day grace) are the most aggressive in this cluster
- Only UAE Islamic offer surveyed with an explicit green-home rate discount
- 85% financing for first-time buyers at the CBUAE ceiling
Cons
- Best rates require salary transfer plus a credit card; unbundled pricing is 25 bps worse
- Post-fixed reversion to EIBOR + margin can jump payments; the margin depends on bundle status
- Window structure: booked Islamically inside a majority-conventional group
- Completed properties focus; under-construction options are limited versus Ajman Bank's Forward Ijarah
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Product Details
Structure
Ijarah (completed property, EIBOR-linked after fixed period)
Features
Published fixed-rate grid by bundle status, ISSC fatwa for Ijarah completed-property finance published, Green Home discount: 0.25% off fixed rate, half processing fee, Buyout package refunds early settlement and valuation fees, Free partial settlement up to 25% annually (variable period), Non-resident foreign investor program to AED 10M
Max Amount
AED 10,000,000+ (foreign investors capped at AED 10M at 50% FTV)
Down Payment
15% (first-time buyers, up to 85% financing)
Term Options
1, 2, 3 or 5 year fixed periods, then variable
FAB Islamic in Dubai
FAB Islamic's Ijarah (completed property, EIBOR-linked after fixed period) structure offers Dubai buyers a halal path to homeownership: instead of an interest-bearing loan, the contract is built on ownership or leasing of the property itself. Before paying arrangement fees, confirm FAB Islamic's valuation coverage and terms for your specific property location in Dubai, and read the Key Facts Statement for fees and early settlement terms. FAB Islamic operates across the UAE, so Dubai residents have full access to this product.
Our Take on FAB Islamic
FAB Islamic is the strongest argument that a window can match a full Islamic bank on substance. The governance architecture goes beyond CBUAE minimums: named scholars with disclosed attendance, per-product fatwas customers can download before signing, segregated Shariah control and audit, and an Islamic Treasury managing the window's own liquidity. Pricing leads the market for bundled customers (2.15% flat auto, 3.99% home with a green discount, 4.79% personal finance), with worked total-cost examples printed on the pages, a disclosure habit regulators should make mandatory. The catch is the bundle: headline rates require salary transfer plus a FAB card, and unbundled pricing is materially worse. Purists who reject the window model on principle (as Qatar's regulator did) will prefer a fully Islamic balance sheet; for everyone else, FAB Islamic is arguably the best-documented halal retail offering in the UAE.
How FAB Islamic Works
Price the bundle first
FAB's headline Islamic rates (2.15% flat auto, 3.99% home, 4.79% personal) assume salary transfer plus a FAB card. Confirm your bundled eligibility before comparing, and demand the unbundled quote in writing if you will not move your salary.
Download the fatwa and the example
Each product page links its ISSC fatwa PDF and a worked total-cost example. Read both before signing; they are the exact documents a diligent customer needs and almost no other bank provides.
Use the pool disclosures for savings
Mudarabah savings publish pool financials and expected rates; campaign rates (4%) are time-boxed, so check the current declaration rather than the advertisement.
Check the green discount
For certified sustainable properties, ask for the green home finance rate below the standard 3.99%; FAB is currently the only UAE Islamic offering with a published green discount.
Financing Structure
FAB Islamic is an Islamic window: a Shariah-compliant business line inside a conventional bank, permitted and regulated in the UAE under CBUAE rules (unlike Qatar, which banned the model in 2011). Segregation is delivered through a board-approved Islamic Window Framework: separate Islamic funds and Mudarabah pools with published pool disclosures, a dedicated Islamic Treasury and Islamic ALCO managing the window's liquidity, and Internal Shariah Control and Audit departments reporting to the ISSC. Products use classical contracts: Mudarabah savings pools, Ijarah home finance, Murabaha auto finance and commodity/sukuk Murabaha personal finance, each carrying a published ISSC fatwa. The Higher Shariah Authority layer applies to the window as it does to full Islamic banks.
In-Depth Analysis
First Abu Dhabi Bank, formed from the 2017 merger of National Bank of Abu Dhabi and First Gulf Bank, is the UAE's largest bank, and its Islamic window inherits that scale. The window operates under a board-approved Islamic Window Framework with its own Internal Shariah Control Department, Internal Shariah Audit Department, Islamic Treasury and Islamic ALCO, the fullest segregation stack disclosed by any UAE window. The group also owns First Abu Dhabi Islamic Finance PJSC, a CBUAE-licensed Islamic finance company, and the same ISSC supervises the window, the finance company and the group's international Islamic operations.
Governance disclosure is the benchmark for this cluster. FAB's 2024 Corporate Governance Report names the ISSC for the May 2024-May 2027 term: Dr. Salim Al-Ali (chairman and executive member, UAE University, and a member or chairman of committees at ADCB, Al Hilal, Emirates NBD, Emirates Islamic, HSBC Bank Middle East, Standard Chartered and Ruya), Dr. Mohamad Akram Laldin (deputy chairman, ISRA Malaysia, also on RAKBANK's committee), Dr. Ahmed Rufai, and Dr. Khalid AlSaiari (from December 2024), plus two UAE-national trainee members, a scholar-pipeline practice worth noting. The committee met 13 times in 2024 with 100% attendance, and appointments carry Higher Shariah Authority approval. At product level, each retail page links its fatwa PDF: the practical customer-facing artifact most banks never provide.
The retail shelf prices aggressively for bundled customers. iSave and Mudarabah savings carry published pool financial disclosures with a 4% expected-profit campaign; home finance starts at 3.99% fixed for salary-transfer-plus-card customers with a green-home discount below that and FTV to 85%; car finance starts at 2.15% flat (about 4.1% reducing, converted on-page) with the same bundle condition; personal finance spans 4.79%-7.2% reducing via commodity or sukuk Murabaha up to AED 5 million, among the highest caps in the market. Worked examples showing total cost over the term are printed on the product pages. Unbundled customers pay visibly more, and FAB does not publish the full unbundled card, the one significant transparency gap.
Assessment: for a customer comfortable with the window model, FAB Islamic is the UAE's most complete package: best-documented Shariah governance, sharpest bundled pricing, largest infrastructure. The editorial caveat is structural, not operational: a window's Islamic deposits are segregated by framework and committee rather than by corporate licence, and customers for whom that distinction matters (it is why Qatar banned windows in 2011) should weigh SIB or DIB instead. Nothing in FAB's disclosure suggests the segregation is anything but rigorous; indeed its paperwork exceeds most full Islamic banks'.
Shariah Compliance Details
- ISSC term May 2024-May 2027: Dr. Salim Al-Ali (Chairman), Dr. Mohamad Akram Laldin (Deputy Chairman), Dr. Ahmed Rufai, Dr. Khalid AlSaiari; trainees Tariq Bujasaim and Mohamed AlMheiri; 13 meetings in 2024, 100% attendance (FAB Corporate Governance Report 2024, crawled 2026-08-05)
- Per-product fatwa PDFs on bankfab.com Islamic product pages (crawled 2026-08-05)
- Islamic Window Framework with segregated Shariah Control, Shariah Audit, Islamic Treasury, Islamic ALCO (governance report)
- Same ISSC supervises First Abu Dhabi Islamic Finance PJSC and international Islamic operations
- Appointments approved by the CBUAE Higher Shariah Authority
How FAB Islamic Compares
Among UAE windows, FAB Islamic leads on every governance and disclosure metric: Mashreq matches it on scholar seniority and fatwa publication but not on segregation architecture; ADCB and Saadiq trail on scholar disclosure; RAKislamic, CBD and NBF are smaller shelves. Against full Islamic banks, FAB's bundled pricing beats SIB's published rates for customers willing to bundle, while SIB wins for salary-independent customers. The honest framing: FAB Islamic versus DIB/SIB is a structure-versus-price-and-paperwork decision, and FAB has closed the paperwork gap entirely.
SIB offers a fully Islamic balance sheet with published rates and no bundling conditions; FAB Islamic beats it on price for bundled customers and on fatwa documentation.
Mashreq fields a more senior scholar bench and equally strong fatwa publication; FAB counters with deeper segregation architecture, sharper pricing and bigger infrastructure.
Group rivalry at window level: ADCB publishes tiered deposit rates FAB does not, while FAB publishes fatwas and scholar rosters ADCB does not.
Bottom Line
FAB Islamic is the best-documented and, for bundled customers, best-priced Islamic window in the UAE, with per-product fatwas and named-scholar governance that outclass most full Islamic banks. If the window structure itself does not trouble you, it belongs at the top of any UAE halal financing shortlist; if it does, take SIB's published rates instead.
Read full FAB Islamic reviewShariah Compliance & Oversight
FAB's ISSC for the May 2024 to May 2027 term: Dr. Salim Al-Ali (Chairman and Executive Member, who replaced Dr. Mohd Daud Bakar after his 10-year chairmanship), Dr. Mohamad Akram Laldin (Deputy Chairman, also on the Shari'ah Advisory Council of Bank Negara Malaysia), Dr. Ahmed Rufai, and Dr. Khalid Mohammed AlSaiari (appointed December 2024), with trainee members Tariq Saeed Bujasaim and Mohamed Eid AlMheiri. The ISSC held 13 meetings in 2024 with 100% attendance and supervises FAB's Islamic window, First Abu Dhabi Islamic Finance, and international Islamic operations. Appointments are endorsed by the Board and approved by the CBUAE Higher Shariah Authority and the general assembly (FAB Corporate Governance Report 2024, verified 2026-08-05). Product-level fatwas are published as PDFs on bankfab.com.
2026-08-05
Why It's Halal
The product runs on Ijarah for completed property, with the ISSC fatwa for Islamic Real Estate Finance (Ijarah - completed property) published as a PDF: the bank buys the property and leases it to the customer, with rent (not interest) fixed for the initial period then floating against EIBOR within the live lease. FAB Islamic's segregated window structure means the facility is funded and booked Islamically, supervised by the four-scholar ISSC chaired by Dr. Salim Al-Ali under CBUAE HSA standards. Mandatory takaful arrangements and the fee-refund buyout design (rebating rather than profiting from switchers) sit comfortably within the fiqh. As with any benchmark-linked Ijarah, the EIBOR revision mechanism is a scholarly-accepted convention that some stricter voices still debate.
Regional Availability
FAB Islamic serves all of the UAE
✓ Available nationwide including Dubai
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NationwideHalal Home Finance Estimate - Dubai
Estimate your monthly payment with a halal financing structure
Monthly
AEDÂ 2,023
Total Cost
AEDÂ 728,142
Total Profit
AEDÂ 408,142
Estimate only. Actual terms vary by provider.
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Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.