Islamic vs Conventional
Compare Murabaha, Ijara, and Diminishing Musharaka side-by-side.
Financed Amount
AED 1,500,000
Cheapest Option
Diminishing Musharaka
Max Cost Difference
AED 717,000
Between cheapest and most expensive
Diminishing Musharaka
CHEAPESTJoint ownership. You buy the bank's share gradually. Rent on bank's portion decreases over time.
Monthly
AED 9,263
Total Cost
AED 2,723,000
Total Profit/Interest
AED 723,000
Conventional Mortgage
Standard interest-based mortgage. Monthly EMI (principal + interest).
Monthly
AED 9,490
Total Cost
AED 2,777,538
Total Profit/Interest
AED 777,538
Ijara (Lease-to-Own)
Bank buys property, leases to you. Rent includes ownership transfer component. Title transfers at end.
Monthly
AED 9,734
Total Cost
AED 2,836,247
Total Profit/Interest
AED 836,247
Murabaha (Cost-Plus)
Bank buys property, sells to you at a markup. Fixed monthly installments. No compounding.
Monthly
AED 12,250
Total Cost
AED 3,440,000
Total Profit/Interest
AED 1,440,000
Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.