UAE mortgage provider Tamweel resumes lending

Company to offer up to 80% financing on finished residential properties in Dubai and Abu Dhabi
UAE mortgage provider Tamweel resumes lending
Tamweel will offer up to 80 percent financing on finished residential properties in Dubai and Abu Dhabi. (AFP/Getty Images)
By Elsa Baxter
Mon 01 Nov 2010 09:21 AM

Tamweel PJSC, the UAE Islamic mortgage provider, has resumed
lending again after two years, the company announced in a statement.

Starting Monday the company will offer up to 80 percent
financing of the current value of finished residential properties in Dubai and Abu
Dhabi, the statement said.

Tamweel was rescued by Dubai Islamic Bank in September, when
the lender raised its stake in Tamweel from 21 percent to 57 percent.

The mortgage lender said that following the “significant
increase” in the equity stake by the bank, it was “well positioned to support
the country’s real estate sector.”

"Tamweel is back in business," said Varun Sood, chief
executive officer, Home Finance Division. "While the past two years have
been extremely challenging for the company - during a period of unprecedented
turmoil in the global real estate and financial services sectors - we have
persevered.”

The company said it was also “extending finance to salaried
and self-employed residents who meet the required eligibility criteria.”

"With a renewed focus on prudence and conservatism, we
are focused on booking a high-quality portfolio of select customers and
properties," Sood said.

Earlier this month, a plan to merge Tamweel with rival Amlak
was scrapped. The two firms have not traded shares since the government announced
a restructuring plan in 2008.

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