One of the largest real estate developers in the Middle East, based in Dubai as well as mortgage lender Tamweel attained the expected nod from its shareholders, in its delisting from the Dubai stock exchange.
Dubai Islamic Bank (DIB) is now clear to acquire the Dubai-based company.
The CEO of DIB, Abdulla Al Hamli expressed his gratitude to the DIB and Tamweel shareholders for the support in helping expedite the acquisition process.
The acquisition of Tamweel will enable DIB to take advantage of the opportunities offered by the recovery and growth of the UAE real estate sector.
Meanwhile the Deputy CEO at DIB, Dr Adnan Chilwan,stated that the UAE real estate market is poised for strong growth over the coming years, with the first quarter of 2013 seeing nearly 50 percent growth in value of transactions in Dubai when compared to same period last year.
“With rents rising four percent quarter on quarter, more and more end users are leaning towards owning properties rather than continuing to rent. Hence, this acquisition leaves our business well placed to capitalize on the opportunities the home finance sector presents.”
He said the bank was seeing a number of companies gradually expanding their business operations, leading to job creation and headcount increase, on the back of positive domestic market conditions.
As few as 15 percent of Dubai’s home purchases are estimated to involve mortgages. The UAE central bank is in the process of drawing up wide-ranging rules for the mortgage market to limit risk and speculation.
Tamweel has now financed property worth over AED 10 billion equivalent to USD2.73 billion.
At present, it provides a whole range of Sharia-compliant products, backed by unparalleled customer service and innovative home finance solutions.
In July 2006, Tamweel achieved a major milestone by moving to a PJSC structure with overwhelming demand subscriptions exceeded the required amount by 485 times.
Dubai Islamic Bank said in January it planned to acquire all of Tamweel, in which it owned 58.2 percent, through a share swap agreement which would see each Tamweel shareholder offered 10 DIB shares for every 18 Tamweel shares they held.