Dubai’s real estate market has always been a story of bold ambition, visionary development, and continuous evolution. But behind the glass facades and luxury projects lies a complex financial ecosystem that enables these developments to thrive. Among the most transformative innovations in this space is alternative financing—an approach that Mashreq has helped pioneer in the region, setting the stage for a new era in real estate funding.

Traditional bank lending has long relied on recourse structures, where developers bear full liability. But as projects became larger and more sophisticated, the need for bespoke financing solutions became evident. When one of the UAE’s largest developers required a structure that optimized capital allocation and minimized balance sheet impact, Mashreq leveraged its deep sector expertise to structure a groundbreaking transaction.

The [transaction] allowed the developer to secure substantial funding with minimal

capital injection, treating the liability as contingent rather than direct. This provided the flexibility to raise additional debt while mitigating risk exposure. But bringing such a structure to life in a market unaccustomed to non-recourse lending required more than just financial acumen. It demanded rigorous risk evaluation, close collaboration with regulators, and a steadfast belief in the long-term value of Dubai’s real estate market.

The success of this transaction led to its replication across other assets. Moreover, refinancing at a lower cost further underscored the viability of non-recourse financing as a sustainable funding tool. While banks will always favor recourse structures, the appetite for non-recourse financing is growing, particularly for seasoned developers with proven track records.

As Dubai continues its ambitious expansion, non-recourse financing will play a pivotal role in attracting new investors and fueling high-quality developments. However, its application must remain disciplined. This is not a tool for speculative projects but rather a specialized solution for the most capable players in the market. The future of real estate financing in the UAE is about smarter, more strategic capital deployment. And non-recourse financing is at the heart of that evolution.

Zain Qureshi

Global Head of Real Estate Finance & Advisory of Mashreq

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