Use Case 7

Real Estate Commission Funding in the UAE

UAE developers typically pay broker commissions on off plan sales in staged payouts that can stretch 90–120 days after booking. This creates a cash-flow gap for brokerages and their sales agents, despite strong market volumes and high headline commissions.

SukukFi can provide commission factoring to brokerages, advancing cash against confirmed developer receivables. This enables faster commission payouts to sales agents and keeps brokerages competitive for top-performing talent and developer allocations.

Dubai’s off plan market reached roughly AED 254 billion (USD ~69 billion) in 2024, with off plan sales dominating transaction volume. If current momentum persists, a reasonable 2026 outlook for Dubai off plan activity is AED 300–400 billion (USD ~82–109 billion). At a typical 5% commission, the addressable commission pool is roughly AED 15–20 billion (USD ~4.1–5.4 billion) annually for off plan sales alone.

Mudarabah: Capital providers fund commission advances while brokers manage sales execution; profits are shared by agreed ratios. Returns are tied to realized commissions and collections, keeping the structure asset backed and aligned with real sales activity.

Faster commission payouts create a competitive advantage for brokerages: they can attract and retain top sales agents, pay commissions ahead of peers, and secure better developer allocations. That talent concentration improves conversion rates and strengthens access to the best off plan dealflow, which compounds broker performance cycle-over-cycle.

In comparison to traditional finance, invoice factoring typically relies on interest based discounting and can be constrained by Western financiers’ limited appetite to underwrite UAE and wider GCC developer receivables due to jurisdictional and market specific risk perceptions. Mudarabah provides risk sharing capital aligned with commissions actually earned, rather than charging interest on short-term advances.