Thursday, August 05, 2010

Dubai Land Department accredits Emirates Islamic bank to lend under Tavseer

Emirates Islamic Bank (EIB) is the first Bank accredited by the Dubai Land Department to lend under Tavseer, the latest initiative by the Dubai government to guarantee financing of few property developments announced in the month of June.

EIB has been given access to the Dubai-government supported guarantee scheme, which aims to assure returns to participating financial institutions, protected by Dubai's RERA's (Real Estate Regulatory Agency) stress test of approved projects.

The Tavseer initiative by the government has gained acceptance amongst industry experts. According to them, this initiative by the Land Department to increase confidence in the market through an official stamp on certain projects is the first positive step, although even cancelled projects need such attention.

The Head of CB Richard Ellis (CBRE) Middle East, Matthew Green, said it is not good for Dubai’s image to have building sites standing idle. Therefore, Tavseer is a vital step taken by the Land Department to get the developments moving.

Such an initiative will inspire confidence and accelerate the real estate market's continuing maturity. The move will help accelerate 40 chosen projects within Dubai Marina, Business Bay and Jumeirah Lake Towers that are already 60 percent complete, commented Marwan Bin Ghalita, the RERA CEO.

Land Department revealed that discussions are underway with banks and developers to set up a comprehensive legislative and procedural frame work in support of the Tavseer guarantee, but wasn't open to further clarification.

The Director-General of the Land Department, Sultan Bin Butti Bin Mejren, said that other bank applications too were under consideration for Tavseer and more projects would be included within the next three years, with each given a special focus.

However, Green pointed out that although Tavseer is a good start to stalled projects, investors require more clarity directly from the developers about such projects. Equal transparency is required for other projects too.

1 comment:

sharetipsinfo said...

As mentioned earlier, Nifty will trade in 4600-5500 range throughout this year and its doing same only.
Now a days we can see many news in the market about various mergers and stake buying by Indian companies which is a good boost to Indian economy.

Still we strongly suggest everyone that one should trade with strict stoploss as Indian stock market is quite volatile.

Investors and traders should also remember one simple point in this Nifty swing from 4600-5500 they will get many good investment opportunities however they have to pick the right stock from so many NSE and BSE listed stocks.