Tamweel down 4% as Shirawi probe continues

by Andy Sambidge Sunday, 17 August 2008

Shares of Tamweel slipped more than four percent on Sunday as investors continued to dump the stock after news that two of its former top employees are under investigation by authorities.

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The stock fell 4.09 percent, having already shed more than 20 percent this month and the index finished down 0.57 percent at 4,988.82 points on Sunday.
Islamic mortgage lender Tamweel said on Thursday it had not been informed of the investigation involving former chief executive a Adel Al Shirawi, adding that any such probe would not affect its performance.

Al Shirawi was arrested on August 5 and is being investigated for alleged embezzlement and mistrust while employed by the UAE's biggest mortgage provider.

The Dubai police have referred the case to the emirate's public prosecution office. Feras Kalthoum, a former head of investments at Tamweel, was also questioned.

Al Shirawi, who stepped down as head of Tamweel in January is currently vice chairman of Dubai's state-owned Istithmar World PJSC.

Istithmar World has a 21.9 percent stake in Tamweel and Shirawi is still a board member.

"Investors are not in a position to take their chances," said Mohamed Alami at Naeem Shares & Brokerage on Sunday. "Share allocations will be to those stocks that are solid in fundamentals and good news ... Tamweel is suffering simply because of that... with negative sentiment prevailing, confidence is low and risk tolerance becomes lower."



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