In the UAE, local banks typically require substantial collateral, such as property or business assets, and charge interest rates around 5–8% for acquisition loans. Foreign investor funding often requires less formal collateral, may involve equity participation, and can carry higher expected returns or profit-sharing arrangements instead of fixed interest.

In the UAE, local banks usually require substantial collateral often company assets, personal guarantees from the owners, or property and interest rates on acquisition loans typically range around 5–8 %, depending on the bank and the borrower’s profile. Foreign investor funding, on the other hand, often comes with little to no traditional collateral but may demand equity, higher returns, or a share of control, which can feel emotionally intense because you’re trading ownership flexibility for capital. Essentially, banks are more conservative and predictable, while foreign investors offer speed and flexibility but bring negotiation stress and potential pressure on decision-making.