Dubai Islamic Bank (DIB) and Istithmar, an investment company established by the emirate’s Ports, Customs and Free Zone Corporation (PCFC), have announced the launch of an Islamic finance company, named Tamweel.
The new company will offer a range of financing such as long-term mortgage finance for those who want to invest in the growing real estate market in the United Arab Emirates (UAE), in addition to financing consumer goods. Tamweel is expected to provide the market with financing of over one billion Emirati dirhams ($272.2 million) and to commence its operations before year’s end.
“Tamweel will capitalize on the growing demand for Islamic financing, especially for the real estate sector which is in need for institutions that are able to provide long term mortgage financing,” explained DIB Chief Executive Officer Butti Bin Darweesh Al-Felasi.
“The UAE economy in general and the real estate industry in particular is experiencing strong growth resulting in creating opportunities for specialized financial institutions. Tamweel will benefit from the combined strength of both Dubai Islamic Bank and PCFC, thus laying a strong foundation for the success of the company,” commented Ahmed Butti, managing director of the Jebel Ali Free Zone Authority (JAFZA) and chief executive officer of Istithmar.
Butti added that the new company also planned “a strategic alliance with a leading international financial institution to bring in best international practices.” An intrinsic part of this initiative is to develop the secondary market in the real estate sector, consisting of refinanced mortgages and securitization of assets. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
