Tuesday, March 29, 2011

Dubai registers 114 projects under the Tayseer Programme

So far about 114 projects have been registered under the Tayseer Programme of Dubai Land Department (DLD). The first funding deal under the scheme is likely to be finalized shortly.

According to Majida Ali Rashed, the Senior Counsel Strategy, DLD, the second phase has begun with several projects having been approved under the Tayseer Programme. Discussions are now underway between the developer and the bank for funding under the scheme.

Tayseer is a sophisticated formula for funding, wherein banks are linked to real estate projects guaranteeing high feasibility. The programme is aimed to push property sector towards a new development strategy with the support and offering of financial ties based on specific criteria, she explained.

So far, seven banks have signed with DLD for financing under the Tayseer initiative. These banks are Abu Dhabi Islamic Bank, Emirates Islamic Bank, Noor Islamic Bank, Abu Dhabi Commercial Bank, Dubai Bank, Mashreq and Ajman Bank.

Tayseer was launched in June 2010, with 40 projects in Dubai Marina, Jumeirah Lake Towers and Business Bay approved in the initial phase. This initiative aimed to boost the liquidity in the market considerably and strengthen the confidence in Dubai property sector.

The programme accredits only those projects that are registered with the department, are less than 60percent complete, holds an escrow account, and are moving as per the construction schedule, under a competent contractor capable of timely delivery of the project.

The real estate buyers can also benefit from Tayseer, as the programme now enrolls banks that offer end-user financing for approved projects.

Tayseer was introduced to promote real estate investment, and ease lending in property sector. Banks have been given the right to choose between financial individuals and financing of projects. For few investors purchasing an approved project will help gain priority from the banks, although it is up to them to finalize the terms and conditions of the deal, Majida said.

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