Abyaar signs Dh125m DIB facility for Acacia Avenues

The finance is based on Ijarah, a Shariah-compliant banking tool, and ends after two years when the project is completed.

Abyaar vice-president and managing director Marzooq Al Rashdan said that DIB was a natural choice for finance because of its reputation and strength as the first Islamic bank in Dubai and also because all of Abyaar's projects are in Dubai.

It is the first time Abyaar has dealt with DIB for financing one of its projects in Dubai, but Rashdan said that "Abyaar is looking to form a long term strategic alliance with DIB." He also added "Abyaar is already considering issuing a sukuk to help finance the company's operations given the success of this venture.

Akram Khan, vice-president and head of GCC region at Dubai Islamic Bank's corporate banking division, said: "Dubai Islamic Bank is pleased to provide Dh125 million financing to Abyaar Real Estate Development under Ijara Muntahiya Bittamleek structure for its Acacia Avenues project. The bank is keen to develop a close relationship with reputable corporate institutions like Abyaar by servicing their corporate banking needs across the GCC region".

Acacia Avenues is the only freehold development on offer in the Jumeirah district and stage one will provide a range of accommodation including 'Olgana' — 137 freehold, one-, two- and three bed-room apartments — and 50 five-and six- bed-room villas. The next phase, 'Hilliana', will house approximately 137 freehold serviced apartments, a Press statement said.