According to a report by Emirates Al-Youm newspaper, Dubai is set to launch a new service in September titled 'Rent Now, Pay Later', which allows tenants to pay their annual rent over a period of up to 12 months without interest.
This initiative is being developed by the Dubai Land Department (DLD) in collaboration with a local bank, aiming to provide more flexibility in rental payments and ease access to housing for tenants.

Under the proposed mechanism, the tenant first selects a residential property, and then the participating bank pays the total annual rent amount upfront to the landlord.
After that, the tenant will repay the paid amount to the bank in flexible installments over a maximum period of 12 months at zero percent interest. Sources familiar with the plan have provided these details to Emirates Al-Youm newspaper.

The final mechanism of this service is still being formulated, and complete details regarding eligibility criteria, application procedures, financing, repayments, and the framework of the relationship between the tenant, landlord, and bank will be announced upon official launch.

If this plan is implemented with the proposed final structure, Dubai could become the first city in the world to integrate such a mechanism seamlessly into its rental market system.
This initiative follows the Flexi Rent plan launched by the Dubai Land Department on June 23, which expanded rental payment options for tenants, allowing for monthly, quarterly, and semi-annual payments.

Source: Gulf News