Mubadala to expand mortgage firm across UAE

Abu Dhabi government investment agency Mubadala Development Company said the mortgage finance joint venture it is setting up with Abu Dhabi property developers would seek to expand throughout the UAE.

Mubadala, Aldar Properties and Sorouh Real Estate are still waiting for the UAE central bank to approve setting up the firm, Mubadala's chief operating officer Waleed al-Muhairi said.

Abu Dhabi Commercial Bank is also part of the joint venture, first unveiled earlier this month. Each partner would own 25% of the firm, Muhairi said.

"It will be a mortgage company to finance individuals and institutions to buy property. We will start with Abu Dhabi and could use this as a platform for the rest of the UAE as well," Muhairi told Reuters in an interview on Thursday.

The mortgage market in the UAE, the second-largest Arab economy, is expected to grow 52.5% to 17.5 billion dirhams ($4.76 billion) this year, Dubai-based mortgage lender Tamweel said in February.

The real estate industries in Abu Dhabi and Dubai, the two biggest emirates, have surged since they allowed expatriates to invest in properties; Dubai in 2002 and Abu Dhabi in 2005.

"There are large opportunities in the mortgage business given Abu Dhabi and its development and it is important for us to be part of it," Muhairi said. Mubadala manages at least $10 billion of assets.

The mortgage financer's capital had not yet been finalised, Muhairi said.

Tamweel and local rival Amlak Finance offer mortgages that comply with Islamic law.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM