Dubai to Launch ‘Rent Now, Pay Later’ Service with Zero-Interest Instalments

DUBAI: Dubai is preparing to introduce a new facility that will allow tenants to pay their annual residential rent in instalments over a period of up to 12 months instead of paying the full amount upfront, with the proposed service offering zero-interest payments.

According to Gulf News, the Dubai Land Department (DLD) is developing the ‘Rent Now, Pay Later’ service in partnership with a local bank, with the service expected to launch in September 2026. The initiative aims to reduce the financial pressure on tenants who currently have to arrange large sums to cover annual rent and provide greater flexibility in managing housing expenses.

Under the proposed model, a tenant will select a residential property, after which the partner bank will pay the landlord the full annual rent upfront. The tenant will then repay the amount to the bank through monthly or scheduled instalments over a period of up to 12 months.

According to the report, a key feature of the proposed scheme is that tenants will not be charged interest on the instalment payments. This would allow tenants to spread their annual rental cost across the year instead of paying a large amount at once.

Officials expect the initiative to provide greater financial flexibility to tenants in Dubai. It could particularly benefit individuals and families who find it difficult to arrange the full annual rent in a single payment.

Under the proposed system, the bank would pay the landlord the complete rent amount in advance, while the tenant would repay the bank according to an agreed payment schedule. This arrangement would provide landlords with the full rental amount upfront while allowing tenants to manage their payments in instalments.

Gulf News reported that the final rules and regulations, eligibility criteria, application process, financing approval mechanism and contractual arrangements between tenants, landlords and the bank will be clarified when the service is officially launched.

If implemented in its current proposed form, the initiative could make Dubai one of the leading global cities to introduce an integrated ‘Rent Now, Pay Later’ model for residential tenants. The scheme could also bring further changes to the traditional rental payment system in Dubai.

Dubai has already been taking steps to make rental payments more flexible, including initiatives aimed at allowing tenants to make payments in more instalments rather than paying rent annually in a single transaction.

However, the final terms and operational details of the new ‘Rent Now, Pay Later’ service will only become clear after its official launch. The service is currently under development and is expected to be introduced in September 2026.