By Andy Sambidge
Al Manal Development gets AED65m loan from Mashreq as part of Tayseer funding scheme
The first loan has been secured by a Dubai developer under a new government scheme aimed at encouraging investment in the emirate's real estate sector, it was announced on Monday.
Dubai's Land Department said Al Manal Development had successfully secured an AED65m loan from Mashreq Bank to finance its Lakeside Residence project.
The department said the loan was the first to be secured under the Tayseer real estate programme, which was launched by the Land Department last year.
Seven banks and Islamic banking institutions have joined the programme, and projects covered under the initiative now number 114.
The Tayseer initiative effectively acts as a ratings agency for the emirate's property projects.
Majida Ali Rashid, senior consultant and senior director of Planning and Organisational Development at the Land Department, said Mashreq had agreed to a two year loan on the 358-apartment Lakeside Residence project depending on completion percentages.
Tayseer involves the evaluation of all under construction projects which are at least 60 percent complete.
Under the scheme, banks will provide the finance at "keenly competitive rates" for development and end user funding and the government, through the Land Department, will provide the guarantees.