UAE intervenes in merger as property woes mount

Points of Essence:

• As the real estates in Dubai plunged deeper into crisis, the Government of the United Arab Emirates had to intervene in the recently announced merger of Amlak and Tamweel, the UAE’s largest mortgage lenders.  The Government-owned Real Estate Bank was set up to address the issues of funding, liquidity and solvency faced by the two troubled institutions. The new Islamic bank bank will boost real estate sector in the UAE as more housing loans will reach the UAE nationals. The bank can now solicit for deposits from the public and have access to the federal funding, the privileges mortgage lenders are not allowed. Reuters has the report.

By Lin Noueihed

DUBAI (Reuters) – Two of the United Arab Emirates’ largest mortgage lenders, already on track to merge, will be brought under a government-owned bank, the UAE finance ministry said on Sunday, in the first sign of federal government intervention in Dubai’s troubled property sector.

Trading in both Amlak AMLK.DU and Tamweel TAML.DU, which have been struggling amid the global credit crunch, was suspended after the finance ministry said it would supervise their merger under the government’s Real Estate Bank to ensure a fair valuation and protect shareholders.

Malaysian Islamic banks to merge

Points of Essence:

• Islamic banks in Malaysia may face a round of merger within 5 fears from now to be on a stronger footing to fend off stiff competitions with major conventional players.  Bernama has the report.

Islamic Banks May Consolidate In Five Years, Says Banker

KUALA LUMPUR, Nov 18 (Bernama) — Islamic financial institutions in Malaysia are likely to consolidate in the next five years, Maybank Islamic Acting Chief Executive Officer Ibrahim Hassan said Tuesday.

Amlak Finance and Tamweel Announce Merger Talks

Points of Essence:

• UAE based real estate finance providers, Amlak Finance and Tamweel have announced their merger recently for a greater synergy in capturing the business opportunity in the UAE with the newly enhanced capacity in scale, fund, skills and products.

Dubai, With the blessing and support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Amlak Finance PJSC and Tamweel PJSC- the two leading real estate finance providers in the UAE, both of which are listed on the Dubai Financial Market – announced today that they have begun exploratory discussions for a possible merger of their respective operations.

Industrial Development Bank to become Jordan Dubai Islamic Bank

Points of Essence:

• The Jordanian-UAE consortium  acquired 52% stake in the Industrial Development Bank (IDB) and planned to rebrand it as Jordan Dubai Islamic Bank (JDIB).  JDIB will offer a full range of Shariah-compliant products for the Jordanian market.
• The consortium consists of Dubai International Capital (DIC), Dubai Islamic Bank, and Jordan Dubai Financial (JDF), the investment arm of JD Capital and the largest contributor to this alliance.

Author: Justin Smith

JORDAN. A signing ceremony took place at the Four Seasons Hotel in Amman today announcing the acquisition of 52% of the Industrial Development Bank (IDB) and the plans to convert it into Jordan Dubai Islamic Bank (JDIB). The agreement was signed by HE Samir Z Al-Rifa’i, CEO of Jordan Dubai Capital (JDC); Khaled Al Kamda, Group Managing Director and CEO of Dubai Islamic Bank (DIB); and Mufleh Akel, Chairman of Industrial Development Bank (IDB). The signing of the agreement was presided over by the Governor of the Central Bank of Jordan, HE Dr Umayya Toukan.

The Jordanian-UAE consortium will invest in IDB via its subscription into the bank’s capital increase of 26 million shares, giving the consortium a 52% stake in the bank’s new capital. The consortium will re-launch the Jordanian bank as a world-class Islamic financing institution that offers a full range of Shariah-compliant products for the Jordanian market. The IDB will be re-branded as Jordan Dubai Islamic Bank.