This guide covers the complete finance lease (Ijarah) contract registration process with the Dubai Land Department, including required documents, DLD fees starting at 0.25% of the finance rental value, step-by-step procedures, and timelines for property buyers using Islamic financing in Dubai.
Finance lease contract registration with the Dubai Land Department (DLD) is a mandatory legal step for all property transactions financed through Ijarah (Islamic finance lease) structures in Dubai. The DLD charges a registration fee of 0.25% of the total finance rental value, plus AED 250 for title deed issuance. Under Federal Decree-Law No. 32 of 2023 on Finance Lease, all finance lease contracts on immovable property must be registered in the relevant property register. EGSH, as an authorised Real Estate Registration Trustee for the DLD, processes finance lease registrations, transfers, amendments, and releases on behalf of property buyers and financial institutions.
What Is a Finance Lease (Ijarah) in Dubai?
A finance lease, known as Ijarah in Islamic finance, is a Sharia-compliant property financing structure in which a bank purchases the property and leases it to the customer for an agreed period. The customer pays monthly rental instalments, and upon completion of all payments, the bank transfers ownership of the property to the customer for a nominal sale price under a separate agreement.
This structure differs fundamentally from a conventional mortgage, where the bank lends money and charges interest (riba). Under Ijarah, the financing institution retains legal ownership of the property throughout the lease term, and the customer holds usufruct (usage) rights. This distinction is significant because it means that the bank's ownership interest must be formally recorded with the DLD through finance lease registration.
Ijarah also differs from Murabaha, another common Islamic financing method in which the bank purchases the property and immediately resells it to the buyer at a disclosed markup, with the buyer gaining title at the point of sale. In an Ijarah arrangement, title transfer occurs only at the end of the lease term.
Major Islamic finance providers in Dubai offering Ijarah products include the Dubai Islamic Bank (DIB), Emirates Islamic, the Abu Dhabi Islamic Bank (ADIB), and the Sharjah Islamic Bank (SIB). These institutions operate under the oversight of the Central Bank of the UAE and must comply with the Higher Sharia Authority's governance framework.
Under Federal Decree-Law No. 32 of 2023 on Finance Lease, which came into effect on 29 March 2024, all finance lease contracts must be registered in the register of the specific leased asset. For immovable property in Dubai, this means registration with the DLD. Unregistered finance lease contracts may not be enforceable against third parties, creating significant legal risk for the financing institution and the customer.
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Who Needs to Register a Finance Lease Contract?
Finance lease registration is required for all property transactions in Dubai that involve an Ijarah financing structure. The legal obligation to register falls primarily on the lessor (the financing institution), although in practice both parties benefit from timely registration.
The following parties require finance lease registration:
Property buyers using Islamic finance from any licensed financial institution, including both UAE nationals and expatriates, must ensure their Ijarah contract is registered with the DLD. Banks and financing entities acting as lessors have a legal obligation to register the lease to protect their ownership interest. Corporate entities using Ijarah structures for commercial property acquisitions must also complete registration.
Finance lease registration applies to the following property types: completed residential properties (villas, apartments, and townhouses), completed commercial properties (offices, retail units, and warehouses), and off-plan properties, where the registration is referred to as a Forward Ijara arrangement. For off-plan properties, buyers should also be aware of Oqood registration requirements through the DLD's off-plan property registration system.
Once registered, the title deed certificate reflects both the bank's ownership interest and the customer's usage rights, providing legal protection for both parties throughout the lease term.
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Required Documents for Finance Lease Registration
The DLD specifies distinct document requirements depending on whether the applicant is an individual, a sole establishment, or a company. All documents must be submitted through a Real Estate Registration Trustee centre such as EGSH.
For individuals:
| Document | Details |
|---|---|
| Finance lease letter from bank | Must state property details, lease amount, rental value, start and expiry dates |
| Emirates ID | For identification only; no copy retained by the DLD |
| Valid passport | Required for non-resident foreigners only |
| Power of Attorney | If a representative acts on behalf of the owner; must be notarised and in Arabic or officially translated |
For individual (one-person) establishments:
| Document | Details |
|---|---|
| Trade licence | Copy required |
| Emirates ID | For identification only; no copy retained |
| Power of Attorney | If a representative acts on behalf of the owner |
For limited liability companies:
| Document | Details |
|---|---|
| Trade licence | Original and copy, including parties and lineage page |
| Certificate of job title | Original required |
| Memorandum of Association | Original and copy, attested by the Ministry of Foreign Affairs (MOFA); must be translated into Arabic |
| Power of Attorney or board resolution | If a representative acts; board resolution must be duly notarised |
Additionally, for freehold properties, an electronic No Objection Certificate (eNOC) from the developer is typically required. The eNOC can be obtained through the Dubai REST app and generally takes three to five working days, with fees ranging from AED 500 to AED 5,000 depending on the developer.
For companies not previously registered with the DLD, company registration must be completed before the finance lease transaction can be processed.
DLD requirements distinguish between resident and non-resident heirs. For UAE citizens and residents, copies of valid Emirates IDs are required in addition to the inheritance decree. For non-resident heirs, DLD accepts passport copies in place of an Emirates ID. As a result, foreign heirs are permitted to inherit property in Dubai and can be formally recorded in the DLD system without holding a UAE ID card, provided the applicable inheritance documentation is in order.
If there is an existing mortgage on the inherited Dubai property, DLD requires a no‑objection letter from the mortgagor (typically the bank or other financier) before completing the registration. This condition ensures that the lender’s rights are preserved and that any change in ownership structure is aligned with the finance agreement. Without this no‑objection confirmation, DLD will not finalise the inheritance title transfer entry.
DLD may initially register the property in the name of “heirs of the deceased” when notified of the death and then, once all inheritance procedures are complete and documents are in order, record the individual heirs and their shares. Until the registration is updated, heirs may face limitations when attempting to sell the property, register a new mortgage or prove ownership to third parties, because Dubai property inheritance for foreigners is only effective against others once it is recorded in the Property Register.
Practical DLD Registration Steps for Heirs
The DLD inheritance process can be broken down into clear steps:
- Secure court documentation: Apply to Dubai Courts (or other competent UAE court) for an inheritance certificate and/or decree of distribution, based on the applicable law identified by the court.
- Gather identification documents: Collect Emirates IDs for all UAE‑resident heirs and passport copies for all non‑resident heirs.
- Address any mortgage: If the property is mortgaged, obtain a no‑objection letter from the mortgagor confirming acceptance of the inheritance transfer.
- Submit the DLD application: File the “Inheritance Title Transfer” / heir’s ownership registration Dubai application through DLD’s approved channels, attaching the court decree and ID documents.
- Complete registration: Once the application is approved, DLD updates the Property Register to record ownership in the names of the heirs in line with the decree, enabling future sale, leasing or financing.
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Step-by-Step Finance Lease Registration Process
The finance lease registration process is conducted through authorised Real Estate Registration Trustee centres. The DLD outlines a five-step procedure for completing the registration.
Step 1 — Obtain the Finance Lease Letter from the Bank
After the bank approves the Ijarah financing, the bank issues a finance lease letter confirming the property details, lease amount, rental value, and the start and expiry dates of the lease. This document typically takes three to five business days to prepare after financing approval.
Step 2 — Obtain the eNOC from the Developer
For freehold properties, an electronic No Objection Certificate must be obtained from the developer. This can be requested through the Dubai REST app. Processing time is generally three to five working days, and fees vary by developer (AED 500–5,000).
Step 3 — Visit the Real Estate Registration Trustee Centre
The applicant (or authorised representative) visits an authorised Real Estate Registration Trustee centre, such as EGSH, with all required documents. The employee verifies document completeness and ensures no documents are missing.
Step 4 — Document Upload and Transaction Processing
All required documents are uploaded via the DLD's digital safe/treasury system. The transaction details are entered into the DLD system by the trustee employee and audited for accuracy.
Step 5 — Fee Payment and Title Deed Issuance
The customer pays all applicable fees and receives a payment receipt. The DLD processes the registration, and the title deed certificate showing the finance lease encumbrance is delivered to the customer via email. The DLD estimates the in-office service time at 30–35 minutes.
The total timeline from financing approval to registered title deed is typically seven to twelve working days, accounting for bank processing, eNOC procurement, and trustee registration.
Related Services
Finance Lease Registration Fees and Costs
The DLD publishes a detailed fee schedule for finance lease registration. All fees below are sourced from the official DLD service page.
| Fee Type | Amount | Paid To |
|---|---|---|
| Finance lease registration fee | 0.25% of finance rental value | DLD |
| Title deed issuance | AED 250 | DLD |
| Land plot map (outside Dubai Municipality) | AED 100 | DLD |
| Land plot map (unified with Dubai Municipality) | AED 225 | DLD |
| Villa/apartment map | AED 250 | DLD |
| Knowledge fee | AED 10 per document | DLD |
| Innovation fee | AED 10 per document | DLD |
| Trustee service fee | AED 4,000 + VAT | Service partner |
Calculation example: For a finance lease with a total rental value of AED 1,000,000, the approximate cost breakdown is as follows: AED 2,500 (0.25% registration fee) + AED 250 (title deed) + AED 250 (map fee for apartment) + AED 20 (knowledge and innovation fees) + AED 4,200 (trustee fee including VAT) = approximately AED 7,220 in total fees. Actual costs may vary depending on property type and the number of documents processed.
Payment can be made via ePay, Sadad Dubai platform, Noqodi, or manager's cheque in favour of the Land Department.
Finance Lease Transfer, Amendment, and Release
Beyond initial registration, the DLD provides separate services for transferring, amending, and releasing finance lease contracts. Each service has distinct requirements and fees.
Finance Lease Transfer
A finance lease transfer is required when the customer switches to a different financing institution or refinances the property. The process requires a No Objection Certificate (NOC) from the previous financing entity and a new finance lease letter from the incoming bank, stating the updated lease amount, rental value, and start and expiry dates.
The fees for a finance lease transfer mirror those of the initial registration: 0.25% of the new finance rental value, plus AED 250 for title deed issuance, map fees, knowledge and innovation fees, and AED 4,000 + VAT trustee service fee. The DLD estimates the in-office processing time at 10–15 minutes.
Finance Lease Amendment
When changes to the lease terms are required — such as adjustments to the rental amount, duration, or other contractual conditions — a finance lease amendment must be registered with the DLD. Standard DLD fees apply per amendment, and the updated terms must be reflected in a revised finance lease letter from the bank.
Finance Lease Release (Termination)
Upon completion of all rental payments, the customer exercises the option to purchase the property, and the finance lease must be formally released. The lessor is required to transfer ownership to the lessee. The DLD's finance lease release service requires a letter from the bank confirming no objection to the release, along with the owner's Emirates ID.
| Fee Type | Amount | Paid To |
|---|---|---|
| Finance lease removal fee | AED 1,000 | DLD |
| Title deed issuance | AED 250 | DLD |
| Land plot map | AED 100–250 (depending on property type) | DLD |
| Knowledge fee | AED 10 per document | DLD |
| Innovation fee | AED 10 per document | DLD |
| Trustee service fee | AED 300 + VAT | Service partner |
Upon release, a new title deed is issued showing full ownership without the finance lease encumbrance. The in-office processing time for a release is 10–15 minutes.
Common Mistakes in Finance Lease Registration
Many property buyers using Islamic financing assume that finance lease registration happens automatically when the bank approves the financing. In reality, registration is a separate legal step that requires the applicant to visit an authorised Real Estate Registration Trustee centre with all required documents. Delays in registration can cause complications with property handover, utility connections through the Dubai Electricity and Water Authority (DEWA), and the overall legal standing of the property ownership arrangement.
Another common misunderstanding is that unregistered finance leases carry the same legal weight as registered ones. Under Federal Decree-Law No. 32 of 2023 on Finance Lease, registration in the relevant property register is essential for protecting the interests of both the lessor and lessee against third-party claims. Buyers should ensure that registration is completed promptly after financing approval.
A practical recommendation is to request the bank's finance lease letter at least five working days before the planned property handover date. This allows sufficient time for eNOC procurement and trustee registration without delaying the move-in schedule.
Why Use EGSH for Finance Lease Registration?
EGSH is an authorised Real Estate Registration Trustee centre licensed by the DLD. As a trustee office, EGSH processes finance lease registrations, transfers, and releases directly within the DLD system. All transactions are subject to DLD verification and approval; EGSH does not issue government decisions or grant approvals independently.
Key features of the EGSH finance lease registration service include: DLD-authorised trustee status (licensed and bonded), Arabic-English bilingual document processing, coordination with Islamic bank finance departments for streamlined documentation, and same-day service availability for appointments with complete documentation.
For finance lease registration support, contact EGSH to schedule an appointment at the trustee centre.
Frequently Asked Questions
What is the difference between finance lease and regular mortgage registration?
A finance lease (Ijarah) registration records the bank's ownership of the property and the customer's lease and usage rights, whereas a conventional mortgage registration records the borrower's ownership with the bank holding a security interest. The DLD registration fee is 0.25% for both finance lease and mortgage registration. The key structural difference lies in who holds legal title during the financing period.
Can I register a finance lease for an off-plan property?
Yes. Off-plan properties can be financed through a Forward Ijara structure, in which the bank and customer enter into a lease agreement for a property to be delivered at an agreed future date. The registration process follows the same DLD procedures, although additional documentation related to the off-plan property registration (Oqood) may be required.
Do I need to be present for finance lease registration?
Not necessarily. If the property owner or lessee cannot attend in person, a representative may act on their behalf using a legal Power of Attorney. The POA must be notarised and either in Arabic or officially translated into Arabic.
How long does finance lease registration take?
The DLD estimates the in-office processing time at 30–35 minutes once all documents are submitted and verified. The total timeline from financing approval to registered title deed, including bank processing and eNOC procurement, is typically seven to twelve working days.
What happens if I do not register my finance lease?
Under Federal Decree-Law No. 32 of 2023 on Finance Lease, unregistered finance lease contracts may not be enforceable against third parties. This means that the legal protection of both the bank's ownership interest and the customer's usage rights may be compromised, potentially causing disputes over property ownership.
Can I sell a property with an active finance lease?
Selling a property with an active finance lease requires settlement or transfer of the existing finance arrangement. The seller must obtain a NOC from the financing institution, and the finance lease must either be released (if fully settled) or transferred to a new financing arrangement. Standard DLD transfer and release fees apply.
Which Islamic banks offer Ijarah financing in Dubai?
Several licensed financial institutions offer Ijarah property financing in Dubai, including the Dubai Islamic Bank (DIB), Emirates Islamic, the Abu Dhabi Islamic Bank (ADIB), and the Sharjah Islamic Bank (SIB). All Islamic banking products must comply with the Central Bank of the UAE's Sharia governance framework and the Higher Sharia Authority's standards.
How much does finance lease registration cost for an AED 2 million property?
For a finance lease with a total rental value of AED 2,000,000, the DLD registration fee is AED 5,000 (0.25%). Adding the title deed fee (AED 250), map fee (AED 250 for a villa or apartment), knowledge and innovation fees (AED 20), and trustee service fee (AED 4,000 + VAT), the total cost is approximately AED 9,720. Actual fees may vary depending on property type and documentation requirements.
Explained by
Muneer Juma Al Balushi
Real Estate Registration Trustee Consultant at EGSH
Muneer Juma Al Balushi has six years of experience in the real estate registration system of the Dubai Land Department. He specialises in accurate, secure, and legally compliant property registration.
Official Sources and References
- The Dubai Land Department (DLD) — Government authority responsible for regulating and registering all property transactions in Dubai, including finance lease contracts.
- The Dubai Land Department — Finance Lease Registration Service — Official service page for finance lease registration procedures, required documents, and fees.
- The Dubai Land Department — Finance Lease Transfer Service — Official service page for finance lease transfer procedures and requirements.
- The Dubai Land Department — Finance Lease Release Service — Official service page for finance lease release (termination) procedures and fees.
- The Central Bank of the UAE — Regulatory authority for financial institutions and activities in the UAE, including the licensing of finance lease providers.
- UAE Legislation Portal — Federal Decree-Law No. 32 of 2023 on Finance Lease — Official text of the federal law governing finance lease operations in the UAE.
Important Notice
The information provided in this article is based on publicly available data from official UAE government sources and is current as of the date of publication. Fees, requirements, and procedures are subject to change at the discretion of the relevant government authorities. The Dubai Land Department and other government bodies retain full authority over all approval decisions, and no outcome is guaranteed. Applicants are advised to verify all requirements directly with the DLD or an authorised Real Estate Registration Trustee centre before proceeding with any transaction. EGSH facilitates applications through authorised channels but does not issue government approvals or override authority decisions.
