February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

Ijara is an Islamic financing contract in which a lessor (typically a financial institution) purchases an asset and leases it to a lessee for a specified period in exchange for agreed rental payments. Unlike conventional leasing, the lessor retains ownership and bears the risks of asset ownership during the lease term. Ijara wa iqtina, a common variant, includes an option or promise for the lessee to purchase the asset at the end of the lease term. The structure avoids interest by framing returns as rental income from a tangible asset.

UAE Context

Ijara is widely used in the UAE’s Islamic banking sector, particularly for property finance and vehicle leasing. As the UAE real estate market is a major economic sector, ijara structures enable Sharia-compliant home purchases and commercial property financing. UAE Islamic banks structure ijara products where the bank purchases the property, leases it to the customer, and transfers ownership upon completion of payments. The Central Bank of the UAE regulates ijara contracts under its Sharia compliance framework, ensuring the lessor genuinely retains ownership risk during the lease period.

Key Data

  • Primary applications: Real estate finance, vehicle leasing, equipment finance
  • Common variant: Ijara wa iqtina (lease-to-own)
  • Key principle: Lessor retains ownership and asset risk during lease
  • Regulatory oversight: UAE Central Bank Sharia compliance standards
  • Market role: Major instrument in UAE Islamic property finance

Significance for Vision 2031

Ijara supports the UAE’s Vision 2031 by providing Sharia-compliant pathways for real estate investment, infrastructure development, and equipment financing. As the UAE expands affordable housing, industrial capacity, and infrastructure, ijara structures offer compliant financing mechanisms that serve both citizens and the broader Islamic investment community. Integration with proptech platforms is further modernizing ijara delivery and accessibility.