In the UAE, lenders are generally selective about the type of tenants the borrower has while offering lease rental discounting loans. This is because tenant credibility directly affects the risk associated with the loan. Here are some kinds of tenants that are often considered and acceptable by most banks and financial institutions in the UAE:
- Government Entities or Semi-Government Bodies
- Multinational Companies (MNCs)
- Public Listed Companies
- Large UAE based established companies
- Banks and financial institutions
Tenants that are less preferred are startups, newly formed companies, individual tenants or small businesses, unregistered businesses, or leases with early exits.
