ADIB signs off Dhs500m Sharia’a-compliant deal to develop Jubail Island

Abu Dhabi Islamic Bank (ADIB) has signed off on a Dhs500m Islamic financing deal for the development and construction of the residential master plan on Jubail Island.

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 is the first Sharia-based leasing “Ijarah” agreement for Jubail Island.

Featuring coastal views, mangrove forests, and a central location, the community development is expected to house 10,000 residents within the next four years.

Nasser Al Awadhi, group CEO ADIB, 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.

“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,” added Nasser Al Awadhi.

Hamad Rashid Al Nuaimi, chairman of JIIC’s board of directors, 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.

“Having already sold 95 per cent 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.”

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

Recently, ADIB provided $61m in financing for green-certified projects in Saudi Arabia in its first green finance deal in the kingdom.