By Joanne Bladd
Mortgage scheme at 4.99% a year aims to capitalise on growing national market, CEO says
Tamweel, the Dubai Islamic home loans company, has resurrected a mortgage scheme for Emiratis at 4.99 percent a year, it said on Wednesday.
Sharia-compliant loans will be available for up to 85 percent of the current market value of completed properties in Dubai and Abu Dhabi, the company said in an emailed statement.
The maximum loan value is AED5m with a repayment tenure of up to 25 years.
“There is a need in the market to address this specific segment,” acting CEO Varun Sood said in an emailed statement. “The demand for housing among the UAE Nationals is on the rise.”
The ‘Baiti’ scheme was first launched in 2006, ahead of the UAE’s real estate crash.
Tamweel, which is majority-owned by Dubai Islamic Bank, launched a promotional mortgage offering a 4.99 annual rate in January, in a bid to capitalise on what it called signs of confidence in the UAE’s property market.
The company swung to a net profit of AED26m in 2010 after a loss of AED54.5m a year earlier.
Tamweel effectively became a subsidiary of Dubai Islamic Bank in September, when the lender raised its stake from 21 to 57 percent.