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Commercial development

The details

Maximum Commitment


Minimum commitment


Usual commitment period

1 year

Usual CTV

50% of gross development value

Percentage of costs

Generally, we will fund a maximum of:

  • 100% of development costs
  • 100% of interest
  • Balance of facility for site/land costs

Repayment source

We will lend subject to appropriate security and interest cover.


Otherwise, there must be committed pre-sales; or pre-lets to good covenants alongside a committed take-out, either by on-sale or refinance.

Site considerations

Within areas of relatively high employment in the gulf. Large developments to be phased.
Proven demand from occupiers and investors.
Pre-letting often required.
Sites to have planning in place prior to lending.
As a guide we prefer projects to show a minimum target profit of 20% on costs.


Bank's valuer / surveyor to assess construction costs, development timetable and cashflow prior to drawdown and certify work (usually monthly) through each project.

Security to include

  • First charge on property
  • Floating charge (corporate borrowers)
  • Assignment of building contract rights
  • Collateral warranties from significant contractors/sub-contractors
  • Personal Guarantees.
  • Life cover

Gulf Investment Bank subscribes to the Banking Code and the Business Banking Code.

We are also a member of the Financial Services Compensation Scheme (FSCS) and are covered by the Financial Ombudsman Service.

A member of staff