Saturday, July 07, 2007

ADCB to venture into mortgage development

Abu Dhabi Commercial Bank (ADCB), the third biggest lender by assets in the UAE, plans to set up mortgage finance and property development units to keep pace with the property boom in the emirate.

The mortgage unit is likely to be an "equal venture" with the UAE developers, Sorouh Real Estate Company, Aldar Properties, and the Abu Dhabi government investment firm, Mubadala Development Company.

Currently Amlak and Tamweel are the only two mortgage providers in the UAE. The mortgages provided by other banks contribute to only thirty percent of the entire market.

Also, the ADCB has entered into another joint venture with Macquarie Bank of Australia to focus on the property development and management.

The increasing oil economy in the UAE, coupled with changes in regulations that permit foreigners to purchase homes in certain parts of the emirate has actually spurred a property boom in Abu Dhabi.

ADCB expects to double its assets in the next three years to about Dh.183.5bn, keeping pace with the economic growth in the UAE.

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