ADIB provides $136m Sharia’a-compliant financing for Jubail Island construction

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With coastal views, mangrove forests, and a central location, the Jubail Island community development will be home to 10,000 UAE citizens and residents within the next four years

The Abu Dhabi Islamic Bank (ADIB), which is one of the UAE’s leading financial institutions, has signed a $136.12 million (AED 500 million) Islamic financing deal for the development and construction of Jubail Island’s residential masterplan.

The funding will cover the infrastructure works and construction of up to 453 villas and 133 townhouses as part of the Phase 1 development of Jubail Island, which is scheduled for completion at the end of 2023.

The agreement marks the first Sharia based leasing “Ijarah” agreement for Jubail Island and demonstrates ADIB’s ongoing commitment and ability to finance development projects.

The group CEO of ADIB, Nasser Al Awadhi, said: “This facility demonstrates ADIB’s growing ability to finance large scale projects which play a major role in the economic development of the UAE.

“It also evidences the results we are achieving through stepping up our corporate financing activity, with a particular focus on high-growth companies in the UAE. We expect this part of our business to continue to grow significantly.”

Al Awadhi added: “It was a pleasure partnering with JIIC to help bring their project to life and open up new frontiers in Abu Dhabi. Jubail Island project will cater to the lifestyle requirements of Abu Dhabi residents as they will be able to enjoy luxury in the heart of scenic landscapes.”

The agreement was signed at Jubail Island by Hamad Rashid Al Nuaimi, the chairman of Jubail Island Investment Company’s (JIIC) Board of Directors, and Nasser Al Awadhi, the group CEO of ADIB.

Commenting on the transaction, Hamad Rashid Al Nuaimi, said: “We are delighted to have secured financing for the first phase of development for Jubail Island and would like to thank ADIB for their continued support.

“The contract signing reinforces JIIC’s commitment in developing a landmark destination and a premier community in the heart of the capital and is a clear indicator of the stability of the Abu Dhabi real estate market.”

The Jubail Island development will be a collection of villages located between Yas Island and Saadiyat Island and the next major landmark for premium residential living in Abu Dhabi.

With coastal views, mangrove forests, and a central location, the community development has been highly anticipated by UAE nationals and expatriates alike and will be home to 10,000 residents within the next four years.

Al Nuaimi added: “Having already sold 95 percent of the residential units to date, we are pleased with the high demand and interest from buyers and investors and look forward to continuing our partnership with ADIB as we maintain our promise in bringing a landmark destination to the capital.”

Jubail Island will cater to a variety of buyers’ tastes and preferences, offering thirteen different types of villa models with various designs.

The project will offer a range of shopping, dining, entertainment, and recreation facilities including a beach club, a business centre, a sports centre, schools, supermarkets, nurseries, a community club, specialised clinics, and other commercial establishments.

ADIB has a strong track record of delivering several landmark and award-winning transactions for high profile Corporate and Institutional customers from across the region. Recently, ADIB provided $61 million in financing for green-certified projects in Saudi Arabia in its first green finance deal in the kingdom.—Arabian Business