Dubai launches zero-interest rent payment plan in September

Dubai is preparing to launch a new 'Rent Now, Pay Later' service in September, allowing tenants to spread annual rent payments over as many as 12 months without interest. The service is being developed by the Dubai Land Department in partnership with a local bank. Tenants can choose a residential property, and the participating bank would pay the landlord the full annual rent upfront. The tenant would then repay the amount to the bank in flexible instalments over a period of up to 12 months at zero interest. The new service is based on Dubai Land Department's Flexi Rent initiative, launched in June, which expanded rental payment options to include monthly, quarterly and semi-annual instalments. If introduced in its proposed form, the new service would go a step further by removing the need for tenants to pay large rental amounts upfront, while still giving landlords the security of receiving the full annual rent at the start of the tenancy.