Wednesday, January 07, 2009

Amlak-Tamweel merger hoped to boost mortgage finance in UAE

Two major Islamic mortgage providers in the UAE - Amlak Finance PJSC and Tamweel, have merged into a new $8billion lender to ensure that mortgage thrives in the country for several more years.

According to Rami Sidani - Head MENA (Middle East and North Africa) Investments at Schroders Investment Management, although there is no direct added value or economic benefit to be derived out of the merger, having both major companies under a single entity would be the ideal strategy for the government to offer much-required support for the two largest players of mortgage finance in the country, which is a vital segment for real estate recovery.

With both companies being placed under the Emirates Development Bank, it is a strong indication that the government is acting quickly to stimulate the real estate sector and offer the required support, he added.

The Fund Manager of Al Mal Capital, Tarek Qaqish, said that the merger would improve the capability levels of both the companies. The merger of both under Emirates Development Bank would be supported by the Federal Government, and this would enhance the liquidity of both companies, he said.

The Chief Executives of both companies are hoping that the merger would be complete towards the first quarter of 2009.

1 comment:

sunil said...

this is a temporary solution to a core fundamental problem. if you are paying any attention at all to the US real estate market you must already know what the future of this merger will bring.