In a fast-growing city like Dubai, the rent-to-own scheme has swiftly gained traction amongst aspiring property owners as an alternative option to own a property, by paying rent under the scheme which will ultimately be converted to equity.

Article 513 of UAE Civil Code stipulates that: '' (1) If the price is deferred or payable in installments, the seller may stipulate that the transfer of ownership to the purchaser be suspended until he pays the whole price, notwithstanding that the goods have been delivered. (2) If the price is paid in full, the transfer of ownership to the purchaser shall operate retrospectively to the time of the sale''. This article could be seen as a source of the rent-to-own scheme concept which commonly stands in need of a tenant paying rent to the owner over a fixed time frame. The accumulated rent will be transformed into equity subject to the tenant decides to buy the property when the lease expires. As reported by the Dubai Land Department, the rent-to-own scheme is exclusively limited to freehold areas in Dubai. Moreover, this type of contract is not new to the real estate market, as it has already been implemented by Islamic banks.

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