Current news for this company:
[UAE] Tamweel PJSC - Islamic Finance
Amlak Finance PJSC, along with Tamweel PJSC, will be merged under Abu Dhabi's state-owned Real Estate Bank, Bloomberg reported. Talks of a merger between the two had been going on since October. An unidentified Ministry of Finance official was quoted as saying the new company will serve as the "cornerstone" of the mortgage market.
The government's involvement is a move to help restore confidence in Dubai's ailing market. From the article:
"Borrowers from Dubai have lost access to cheap international funding this year as the perceived risk of Dubai companies as measured by default swaps rose. Credit-default swap contracts covering the debt of Dubai Holding LLC, the emirate's holding company, were last quoted at 1,100 basis points on Nov. 21, according to CMA Datavision prices. That compares with 245 basis points in March. The increase signals a decline in the perception of credit quality."
Tamweel is the U.A.E.'s second largest mortgage lender. It's market value had dropped to 990 million dirhams ($269 million) after the stock fell 86 percent this year according to the Bloomberg article. Both Amlak and Tamweel specialize in Islamic finance compliant with Shariah Law.
"The fundamental difference between Islamic banking and the more conventional version," their site explains, "is the fact that, in Islamic banking, no interest is charged. Instead, both the provider and the investor join together in a partnership agreement in which profits and losses are shared. The investor has the added comfort of knowing that the provider will never invest funds into anything that is considered to be against Islamic ethics and morals."
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.