DUBAI : The proposed scheme will allow eligible residents to spread rent payments over up to 12 months without interest.

The initiative is being developed by the Dubai Land Department (DLD) in partnership with a local bank and is aimed at easing the financial pressure on tenants who currently have to arrange large rental payments upfront.

Under the proposed mechanism, a tenant would select a residential property, after which the participating bank would pay the landlord the full annual rent upfront. The tenant would then repay the bank through instalments spread over a period of up to 12 months.

The instalments are expected to be offered at zero interest, meaning eligible tenants would repay the financed rental amount without additional interest being added. However, authorities have yet to clarify whether processing, administrative or other charges may apply.

The arrangement could also benefit landlords by ensuring they receive their entire annual rental amount at the beginning of the tenancy rather than waiting for monthly payments from tenants. The tenant’s repayment obligation would instead be handled separately with the participating bank.

Details covering eligibility requirements, the application process, financing terms and repayment conditions are still being finalised and are expected to be announced when the service formally launches.

The proposed service builds on DLD’s “Flexi Rent” initiative, launched in June, which expanded rental payment options to include monthly, quarterly and semi-annual instalments.

If implemented in its proposed form, the initiative could make Dubai the first city globally to introduce such a financing mechanism as an integrated part of its rental market, while potentially reshaping the way residents budget for housing.

For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.