UAE becomes first country to issue digital mortgage certificates

Last week the Abu Dhabi City Municipality (ADM) issued the first-ever digital mortgage certificate, making the UAE the first country globally to offer online real estate mortgage services.

Following the collaboration between ADM and Abu Dhabi Islamic Bank, UAE nationals can now access online real estate services via ADM’s smart services hub.

The online smart hub will enable consumers to access real estate services such as housing loans, mortgage redemption and commercial funding.

So far, six leading banks have partnered, joining the system, with ADM calling for more banks to join in. The move to digitalise these mortgage services follows increased support from the Department of Urban Planning and Municipalities.

Saif Badr Al Qubaisi, Chairman of the Technology Committee at the Department of Urban Planning and Municipalities said: "This giant step of issuing the first digital mortgage certificate in the world is a result of the great support and motivation of HH Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the Armed Forces, during a visit to the municipality."

However, uptake of the online mortgage service could prove slow at first, since appetite for home loan/ mortgages is limited in the market.

According to RFi Group data, only 2% of consumers in the UAE hold a home loan or mortgage product, of which the large majority opted to complete their application in-branch instead of online

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