Dubai's DIB gets green light for Tamweel buy

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Dubai Islamic Bank (DIB) announced its formal bid to purchase 100 percent of mortgage provider Tamweel following approval from the Securities and Commodities Authority.

Dubai’s largest Sharia-compliant lender, which already owns a 58.2 percent stake in Tamweel, will offer ten new DIB shares for 18 existing Tamweel shares held, it said in a statement Sunday.

DIB’s offer is subject to final shareholder approval and will be presented to investors on March 3.

“With the necessary regulatory approvals now in place, DIB is ready to move forward with the next stage of its bid for Tamweel,” Dr Adnan Chilwan, deputy CEO.

“This move reflects DIB’s commitment to supporting the UAE economy in general and the resurgent home finance sector in particular. We believe this offer is in the best interests of the shareholders, customers and stakeholders of both DIB and Tamweel,” he added.

In December, Moody’s placed DIB on review for possible downgrade, citing concerns over asset quality, loan loss coverage and the lender’s relatively weak capital base.

The lender posted a 33.9 percent rise in its fourth-quarter net profit earlier in the month, beating analysts’ forecasts. DIB made a net profit of AED1.19bn in 2012, it said in a statement, a 13 percent increase on 2011.


Market Performance

Dubai Islamic Bank - UAE
-0.02 -0.3 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Red Snappa

It's a shame that there isn't an institution moving forward with the same level of enthusiasm for Amlak, debt restructure aside it's going to get a whole lot worse before it gets better, unless they get taken over by a bank. Exactly how toxic is the balance sheet?

I wonder how heavy it is weighing on Emaar at the minute?

Although having said that Tamweel has the burnt out tower damage to contend with. I wish all displaced residents a speedy return to their abodes, by the way.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

How Gulf banks are helping to underwrite region's aviation boom

How Gulf banks are helping to underwrite region's aviation boom

Figures from Airbus show that 47% of MidEast aircraft deals in...

Most Discussed