Equipment Financing in the UAE: 5 Options for SMEs Compared (2026)

A new forklift, CNC machine or delivery van can lift a UAE business's capacity overnight. Paying for it in cash can also empty the account you need for payroll and suppliers. Equipment financing spreads the cost over the working life of the asset, and UAE SMEs have more options than a standard bank loan.

Short answer: UAE SMEs usually pay for equipment in one of five ways: a bank equipment loan, an Islamic ijara (lease-to-own), a lease or rental, a government-backed program for eligible industrial firms, or supplier payment terms. The right choice depends on how long the asset will earn money, how much cash you can put down, and whether you want to own it at the end.

What equipment financing is

Equipment financing is any arrangement that lets you use a business asset now and pay for it over time. The asset itself usually secures the deal, which is why it is often easier to arrange than unsecured business credit. Common examples are vehicles, construction plant, production machinery, medical devices (see our guide to medical equipment financing), IT hardware and kitchen equipment.

The main question is who owns the asset while you pay. With a loan you own it from day one and the bank holds a charge over it. With a lease or ijara the provider owns it, and ownership may pass to you at the end.

1. Bank equipment loans

Most UAE banks offer loans for business vehicles and machinery. Emirates NBD, for example, advertises business vehicle and equipment loans of up to AED 10 million, repayment over up to 60 months, financing of up to 100% of the asset value including insurance, and new or used assets [1]. Read the footnotes, though: the 0% down payment applies to existing customers who have repaid a loan with the group for 12 months, and the larger amounts apply to existing customers [1].

The same bank lists what it asks for: six months of bank statements, audited financials where applicable, the owner's passport and visa, a copy of the trade license and Memorandum of Association, and details of your current fleet [1]. Expect a similar pack from other lenders.

Best for: long-life assets you want to own outright, when you already bank with the lender.

2. Islamic ijara (lease-to-own)

In an ijara, the bank buys the equipment and leases it to you for a rental. Dubai Islamic Bank describes the leasing period as normally 3 to 7 years, with the right to purchase the asset at the end [2]. Because the bank owns the asset during the lease, the structure is Shariah-compliant.

Pricing is usually variable. Emirates Islamic's key fact statement for business ijarah sets the effective profit rate at EIBOR (1, 3, 6 or 12 month) plus an agreed margin, with processing fees, late payment amounts and early settlement charges set in the facility offer letter [3]. Ask for the APR, which the same document says includes the profit rate and processing fees on an annualized basis [3].

Best for: businesses that want Shariah-compliant terms or a longer tenor than a conventional loan.

3. Leasing and rental

An operating lease or rental gives you the asset for a fixed period without a plan to own it. It suits equipment that dates fast (IT hardware, some medical devices) or that you only need for one project.

Do not lease to keep a liability off your accounts, because that no longer works. Under IFRS 16, a lessee recognizes a right-of-use asset and a lease liability for every lease longer than 12 months, unless the asset is of low value [4]. If you report under IFRS, a lease looks much like a loan in your accounts. It still helps cash flow.

Best for: short projects, fast-changing technology, and assets you would not want to resell.

4. Government-backed programs for industrial firms

If you manufacture in the UAE, look at Emirates Development Bank (EDB). Under the "Make it in the Emirates" campaign run with the Ministry of Industry and Advanced Technology, EDB provides financial and advisory support to industrial players, including financing for advanced technology and equipment and for machinery upgrades, especially Industry 4.0 applications [5]. Eligibility and terms are set by EDB, so check with them directly before planning around it.

Emirati founders and Abu Dhabi businesses should also check local programs such as those run by Khalifa Fund.

Best for: manufacturers and industrial companies investing in productivity.

5. Supplier payment terms

Before you apply to a bank, ask the seller. Many equipment distributors will let a known buyer pay in 30, 60 or 90 days, and for spare parts, tools and smaller machines that may be all you need. Our guide on how to get extended payment terms from suppliers covers how to ask.

Suppliers often say no because waiting 90 days for payment hurts their own cash flow. That is the problem Comfi solves for them (more below).

Best for: lower-value equipment, consumables and repeat purchases.

How to compare equipment financing offers

1. Match the tenor to the asset's working life. Do not take 60 months to pay for a laptop, and do not pay for a 10-year machine from this quarter's cash.
2. Compare APRs, not headline rates. Processing fees, insurance and arrangement charges change the real cost. Our guide to processing fees explains what to look for.
3. Check the down payment. "Up to 100%" offers often depend on your relationship with the bank. Get the deposit in writing.
4. Read the early settlement terms. If you expect a large contract to pay out early, settlement charges matter.
5. Know who owns the asset at the end. Loans and lease-to-own deals end with ownership. Operating leases do not.
6. Model the monthly payment against your cash cycle. If your customers pay in 60 or 90 days, the installment arrives before their cash does. Our cash conversion cycle calculator shows how long your money is tied up.

Where Comfi fits

Comfi is not a lender and does not provide loans, so it will not finance your forklift. It is a business loan alternative that helps UAE SMEs unlock working capital in two ways that often decide whether an equipment purchase is comfortable or stressful.

• If you buy equipment, the hardest part is often the deposit and the first installments, while your own customers are still on 60 or 90 day terms. Comfi Invoice Discounting unlocks the cash stuck in invoices you have already issued, so a deposit does not drain payroll. Across Comfi's customers, the median time from an approved invoice to money in the bank is about 20 hours (Comfi data; a median, not a guarantee).
• If you sell equipment, Comfi B2B Buy Now Pay Later lets your buyers pay in 30, 60 or 90 days while you get paid upfront, within hours of an approved invoice. That makes "yes" to a buyer's request for terms much easier. RF Technologies, a UAE electronics distributor, offers its retailers 30, 60 or 90 day terms through Comfi, which also handles collections. Within one month of its pilot, its sales rose 10% and average retailer purchasing volume rose 30%.

More than 1,000 UAE SMEs have unlocked cash on AED 600M+ of invoices with Comfi. See how this works for industrial equipment suppliers.

Comfi works with UAE-registered B2B companies operating for 12 months or more with monthly revenue of AED 300,000 or more. Check your eligibility in a few minutes.

Frequently asked questions

Can a new business get equipment financing in the UAE?

It is harder. Banks usually ask for bank statements and audited financials, and the best published terms are often for existing customers. Leasing, supplier terms and government programs for eligible founders are more realistic starting points.

Is leasing cheaper than buying with a loan?

Not always. Compare the total of all payments and fees with the purchase price plus loan cost, and factor in what the asset is worth at the end.

What is the difference between ijara and a conventional equipment loan?

With a loan you own the equipment and pay interest. With ijara the bank owns it and charges rent, and ownership can pass to you at the end of the lease.

Sources

1. Emirates NBD, "Business Vehicle and Equipment Loans" (accessed November 2026). Supports the loan amount, tenor, asset value, down payment conditions and document list. Link.
2. Dubai Islamic Bank, "Ijara" (accessed November 2026). Supports the ijara structure, 3 to 7 year lease period and purchase right. Link.
3. Emirates Islamic, "Key Fact Statement: Ijarah (Business Banking)" (accessed November 2026). Supports EIBOR plus margin pricing, APR and fee terms. Link.
4. IFRS Foundation, "IFRS 16 Leases" (accessed November 2026). Supports the lessee accounting rule. Link.
5. The Official Portal of the UAE Government, "Make it in the Emirates" (accessed November 2026). Supports EDB's equipment and machinery financing for industrial players. Link.