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Posts Tagged ‘Tamweel

UAE intervenes in merger as property woes mount

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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.

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Written by Suapi Shaffaii

November 24, 2008 at 6:14 pm

Tamweel Reverts to 80% Limit on Housing Loans

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Points of Essence:

  • The current credit woes had influenced Tamweel to restore its original 80% home financing scheme, thus slashing its current promotional offer of up to 90% financing. Citing a need to be prudent with its resources, it plans to finance more genuine home buyers rather than speculative buyers, which industry analysts said it signals the end of an era of “easy and liberal” home loans.

By Issac John

DUBAI – Tamweel, a Dubai-based Islamic mortgage company, said on Thursday it had ended a promotional offer of up to 90 per cent home financing and was increasing its equity requirements by reverting to its original 80 per cent scheme, a move banking analysts say signals the end of an era of “easy and liberal” home loans.

Nabil Abou Alwan, group head of marketing and product development at Tamweel, said the mortgage firm was trying to be prudent with its resources to finance more genuine home buyers, rather than speculative buyers. “Given the current credit crunch, the move will boost our capacity to finance end-users who are willing to put up more equity,” he told Khaleej Times.

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Written by Suapi Shaffaii

October 10, 2008 at 2:39 pm

Tamweel plans $544m Sukuk despite crunch

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Points of Essence:

  • Tamweel plans to launch up to Dh2 billion ($544.5 million) in Islamic bonds for local market consumption in the first quarter of 2009, asserting that the global liquidity squeeze had only affected certain companies in the financial sector.

Dubai-based Islamic mortgage lender Tamweel said on Monday it was planning to launch up to Dh2 billion ($544.5 million) in Islamic bonds in the first quarter of 2009 despite the global liquidity crunch.

“There are ideas to sell sukuk to the local market. They would be in the range of Dh1-2 billion,” Tamweel chairman Sheikh Khaled Al-Nahayan told Reuters on the sidelines of a property fair.

“Already there is a desire (for sukuk),” he said, adding that the liquidity squeeze had only affected certain companies in the financial sector.

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Written by Suapi Shaffaii

October 6, 2008 at 10:26 pm

Amlak Finance and Tamweel Announce Merger Talks

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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.

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Written by Suapi Shaffaii

October 4, 2008 at 10:37 pm

Tamweel’s former CEO Adel Al Shirawi faces investigation for fraud

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UPDATES: 22 August 2008

Point of Essence:

  • Tamweel denies it being implicated under the current probe against its ex-CEO, Adel Al Shirawi.
  • This statement was issued amid concerns that the probe may be linked to the company which has seen its share prices plummeted ever since the investigation started. The company clarified that the probe was related to the personal wrongdoings of the former CEO.

Tamweel says it’s not under investigation

Thursday, 21 August 2008 12:07

Dubai-based Islamic mortgage lender Tamweel is not under investigation by the public prosecution as part of a corruption probe in which two former senior executives have been detain, the company said on Thursday.

Tamweel said that “to the best of the company’s knowledge” the investigation was limited to former chief executive Adel Al Shirawi and former head of investments Feras Kalthoum and will not hit profits.

“…there is no investigation into the activities of the company itself.” Tamweel said in a statement.
“Tamweel therefore reassures its shareholders and sukuk holders that this investigation has no negative impact on the profitability and operations of the company.”

The statement follows comments made by chief financial officer Gaurav Agarwal earlier in the week in which he said Tamweel has no plans to change its 2008 profit growth target and that the possibility that an investigation could lead to cash losses was “remote”.

Since the beginning of the month Tamweel’s share price has dropped 22.63 percent to Wednesday’s close.

The investigation into Al Shirawi and Kalthoum was first made public last week by Tamweel’s biggest shareholder Istithmar World, part of a broad corruption crackdown by the Dubai government.

State-owned developer Nakheel has also confirmed one of its staff is being questioned by police and analysts say there is more to come.

Investigations are also underway into former employees of Deyaar Development, including its former CEO, and Dubai Islamic Bank.

Source: http://www.arabianbusiness.com

Points of Essence:

  • Tamweel’s ex-CEO, Adel Al Shirawi, is currently probed for embezzlement and mistrust by the Dubai investigating authority.
  • While this will cause a dent to the reputation of the companies associated with the CEO, it does affect the well being of the overall Islamic finance industry.

Al Shirawi stepped down as head of Tamweel in January and is currently vice chairman of Istithmar World.

Dubai: Tamweel PJSC’s former chief executive officer Adel Al Shirawi is under investigation by the Dubai public prosecution’s office for alleged financial wrongdoing, a Dubai police official said.

Al Shirawi is being investigated for alleged embezzlement and mistrust while employed by the UAE’s biggest mortgage provider, Saleh Hamed, head of Bur Dubai police, said in a telephone interview on Thursday.

The Dubai police have referred the case to the emirate’s public prosecution office, he said.

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Written by Suapi Shaffaii

August 21, 2008 at 3:30 am

Posted in Financial Crime

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