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New entity to provide strong growth platform for real estate financing
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Combined entity will be Sharia-compliant
UAE Ministry of Finance has announced that it started the official procedures to merge Amlak Finance PJSC and Tamweel PJSC, two leading Sharia-compliant real estate finance providers in the UAE, under the UAE Real Estate Bank to create the largest real estate finance institution in the country under the umbrella of the Federal Government. The Sharia-compliant entity will also leverage the strengths of Amlak Finance and Tamweel, reported the Emirates News Agency WAM.
An official from ministry of finance, said: “The merger of Amlak Finance and Tamweel under the Real Estate Bank is a milestone development for the UAE financial sector. The new entity will provide a strong growth platform for real estate financing in the UAE, and will serve as the cornerstone of the mortgage market, which has significant growth potential.” The process towards combination of the operations will ensure a fair process for the current shareholders and customers. The approach will be based on international best practices with distinct steps that include financial and legal due diligence, independent valuation, regulatory and other related approvals as well as integration of the entities.
His Excellency Nasser Bin Hassan Al Shaikh, Director General, Department of Finance and Chairman, Amlak, explained: “By leveraging the combined expertise of Amlak Finance and Tamweel, the Real Estate Bank will enhance the value proposition for customers with broader product capabilities, and meaningful operational and financial synergies.” His Excellency Sheikh Khalid Bin Zayed Bin Saqer Al-Nehayan, Chairman of Tamweel, added: “The new entity will further strengthen investor confidence in the financial and property sectors in the UAE, and create a robust platform for growth for the entire economy. By drawing on the combined management expertise, the new entity will bring significant benefits to shareholders and customers.” Real estate bank has come into operation from 1999 to further support real estate and providing housing for UAE nationals through Sheik Zayed housing program. Its current customers have exceeded (7000) seven thousand customers.
Amlak Finance is currently the largest publicly held Islamic finance company in the UAE. Beyond its size and reach in the market, Amlak Finance is known for its innovative and broad range of offerings, including the first Shair’ah compliant refinance product in the UAE. Amlak Finance has demonstrated a strong growth in its assets from AED 9.5 billion in 2007 to 14.2 billion in the first half of 2008.
Tamweel is a leading provider of real estate financing in the UAE. Tamweel has captured this position with its entrepreneurial culture as well as its financing expertise. Asset size of Tamweel has reached AED 10.8 billion in the first half of 2008, up from AED 8.5 billion end of 2007.
