Istisna | Real-Estate | AlSalama Bank
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Istisna

  • Flexible
    Operations
  • Multiple
    Finance Options
  • Flexible
    Repayment Options
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Istisna Financing

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Plan the future with Sharia-compliant finance solutions that support the construction of buildings, aircrafts, machine equipment and more.

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What is Istisna?

Istisna is a Sharia mode of financing used to finance the construction of buildings, residential towers, villas and related products, as well as the manufacturing of aircrafts, ships, machines and equipment.

How it works:
As a customer, if you own a plot of land and want to construct property on it and need financing for this purpose, AlSalama Bank will sign an Istisna agreement with you in relation to the construction of the building as per your specifications at the cost of the bank. The bank will then get the sale price from you on a deferred payment basis.

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Terms Of Financing

  • Down Payment: Minimum 25% of total construction cost
  • Transaction Period: Up to 10 years
  • Payment Mode: Quarterly, Semi-annual or Annual terms are available

  • Source of Payment: Business cash flows, rentals
  • Pricing Rate: Fixed throughout the financing period
  • Security: First class mortgage on the plot and building, post dated cheques covering installments
  • Takaful (Islamic Insurance): Takaful policy covering the property under construction to be assigned to the Bank
  • Qualified Assets: Residential, Office Buildings and Villa Complexes

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Documentation

With our team of skilled professionals, applying for Istisna finance is simple and stress-free, with primary documents varying based on requirement. Note that requirements may be lowered in cases where additional security is provided.

Primary Documents for Individuals:

  1. Valid passport copy
  2. Completed finance application form
  3. Site plan copy
  4. Title deed copy
  5. Feasibility study by project consultant
  6. Construction/Engineering plans

Primary Documents for Companies:

  1. Valid trade license copy
  2. Commercial Registry copy
  3. Partnership agreement copy (in case of partnerships)
  4. Chamber of Commerce and Industry copy
  5. Valid passport copies of partners (in case of partnerships)
  6. Valid passport copy of authorized personnel and copy of Articles of Association defining their powers
  7. Site plan copy
  8. Title deed copy
  9. Project consultant feasibility study
  10. Last 3 years’ financials
  11. Construction/Engineering plans

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30 February 2025

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22 February 2025

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18 February 2025

AlSalama Bank Group 1st Half 2018 Financial Results

24 June 2018

ASB Champions Customer Happiness With 9th Double Your Salary Draw

18 June 2018

A Fresh New Look to the World’s Oldest Islamic Bank

11 June 2018

Investors Flock to ASB Capital Raising

27 May 2018

AlSalama Bank receives two prestigious ISO certifications

15 May 2018

ASB stands out at Banker ME Industry Awards

01 May 2018

AlSalama Bank honored by Dubai Service Excellence Scheme for the widest implementation of Happiness Meter

18 April 2018

AlSalama Bank 1st Quarter 2018 Financial Results

25 March 2018

AlSalama Bank’s ‘MyHome’ is set to change UAE home finance market

14 March 2018

AlSalama Bank shines again with twelve distinctive accolades at Islamic Finance News Awards

13 March 2018

AlSalama Bank participates in 18th Careers UAE Exhibition

04 March 2018

ASB wins ‘Best Sukuk House’ at EMEA Finance Middle East Banking Awards for Second Consecutive Year

22 February 2018

AlSalama Bank hosts Annual General Meeting

19 February 2018

DED and ASB ‘Consumer Card’ recognized by Visa for successful card program

12 February 2018

AlSalama Bank Triumphs With Two Accolades at Service Olympian Awards

11 February 2018

AlSalama Bank participates in 20th National Career Exhibition

31 January 2018

AlSalama Bank Issues US$ 1 billion Senior Unsecured Sukuk

29 January 2018

AlSalama Bank celebrates first UAE National win in “Double Your Salary” Promotion

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