Dubai's Tamweel swings to profit in Q4

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NET PROFIT: Dubai's Islamic lender Tamweel said reduction in funding costs helped swing its Q4 results to a net profit of $3m. (Getty Images)

Dubai Islamic mortgage lender Tamweel swung to a net profit of $3 million in the fourth quarter, helped by a reduction in funding costs.

Tamweel made a loss of $30.57 million in the fourth quarter of 2008. The firm's full year net loss for 2009 was $14.7 million compared with a profit of $125.4 million in 2008.

In a statement, Sheikh Khaled, chairman, said: "Tamweel's operating results continue to be profitable in the fourth quarter of 2009, with a net profit recorded despite sizeable amounts set aside for prudential provisioning."

Total impairment provisions carried on the books at the year end was $111.08 million, Tamweel said. Islamic financing and investing assets in 2009 reduced marginally to $2.83 million dirhams.

Last month, Sheikh Khaled said a planned merger between Tamweel and its peer Amlak was still possible in the first quarter as progress was being made.

Tamweel and Amlak have both been hit hard by the collapse of Dubai's once booming property sector and shares in the two companies were suspended in 2007 and have not traded since.

The UAE government said in November 2008 it intended to merge the two firms and has been working on a plan to restructure them. (Reuters)

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