Islamic Commercial Bank

Dubai Islamic Bank Home Finance

Part of PakFinHub's DIB coverage — Home Musharakah structure and rates.

Shirkat-ul-Melk cum Ijarah
Purchase · Construction · Renovation

Written & reviewed by Dildar Hussain — 10+ years in Pakistani banking, BS Banking & Finance (NUML University)

Dubai Islamic Bank home finance uses a Shirkat-ul-Melk cum Ijarah model — a diminishing partnership structure where the bank and customer jointly own the property, and ownership gradually transfers to the customer over the financing tenure. DIB's own description of the mechanics, purchase through to full ownership, follows below.

How Shirkat-ul-Melk Cum Ijarah Works

The bank and customer establish a partnership in the property at a pre-agreed ownership ratio, formalized through a Musharakah Agreement.
After physical or constructive possession, the bank leases its ownership share to the customer through a separate Ijara (lease) agreement, which sets out the rental for the first lease period.
The customer pays periodic rental on the bank's share — this is what replaces a conventional mortgage's interest payment.
At the end of an agreed lease period (or earlier, if the customer chooses), the bank sells its ownership share to the customer at a specified price through a separate sale transaction, reducing the bank's share until the customer owns the property outright.

Structure confirmed verbatim from DIBPL's official Home Finance product page (dibpak.com/index.php/consumer-finance/home-finance/).

What You Can Finance

Purchase

Buying a ready residential property, structured under the same Musharakah/Ijara mechanics.

Construction

Financing to construct a home on land you already own or are acquiring.

Renovation

Home improvement financing, capped at a percentage of the property's assessed value.

As per State Bank of Pakistan's Consumer Financing Regulations, only residential property is eligible for financing under DIB's Home Finance product — commercial property is out of scope for this facility.

Rental Rate

Like Auto Finance, the rental DIB charges on its ownership share is benchmarked to KIBOR and can move with it over the financing tenure rather than staying fixed. DIB's own official home-financing calculator explicitly flags that any indicative monthly rental figure shown is illustrative only, subject to Credit Committee approval and necessary verifications — not a binding offer.

KIBOR-linked structure and calculator disclaimer confirmed from DIBPL's official website (dibpak.com).

Roshan Apna Ghar — for Overseas Pakistanis

Non-Resident Pakistanis with a Roshan Digital Account can access DIB's Roshan Apna Ghar variant, which uses the same Musharakah cum Ijara structure to help NRPs finance or purchase property in Pakistan remotely, including a Home Renovation option capped at up to 30% of the property's value. Two PBA-approved valuation companies typically need to assess the property before financing proceeds. See our Roshan Digital Account page for the full RDA picture.

PMRC Partnership — Expanding Affordable Housing Finance

DIB Pakistan has signed a PKR 6 billion Musharakah financing facility with the Pakistan Mortgage Refinance Company (PMRC), aimed at expanding access to affordable Shari'a-compliant housing finance and supporting broader homeownership across the country. The facility gives DIB additional long-term liquidity from PMRC to fund its home financing book, aligning with the government's push to address Pakistan's housing shortage through Islamic banking channels.

Source: DIB Pakistan's official announcement of the PMRC partnership, PKR 6 billion Musharakah financing facility.