Dubai : Islamic mortgage fin-ance company Tamweel is continuing to work on a restructuring plan led by the federal government-appointed Steering Committee, the company's chief executive said yesterday in a filing with the Dubai Financial Market (DFM).
"As disclosed earlier, Tamweel continues to cooperate with the Federal Government appointed Steering Committee and other stakeholders who are involved in finalising initiatives to restructure the company," said Wasim Saifi.
Tamweel's statement comes in response to Dubai Islamic Bank's (DIB) statement to the DFM on Wednesday that the bank was evaluating the possibility of increasing its stake in Tamweel.
Analysts said yesterday that the new developments had added to the ambiguity surrounding the fate of the proposed merger between Tamweel and Amlak, another Islamic mortgage lender.
The federal government-appointed committee had reached the final stages regarding a scenario to complete the proposed merger, Sultan Bin Saeed Al Mansouri, Minister of Economy, was quoted as saying in mid-March.
The restructuring scenario that had been discussed until recently was the merger of the two firms to establish an Islamic bank that would receive the financial support of the government.
DIB currently owns nearly 20 per cent of Tamweel. Following the merger announcement in October 2008, both Amlak and Tamweel shares have been suspended from trading.
DIB faces legal battle
Dubai Islamic Bank faces a $650 million (Dh2.3 billion legal battle in Bahrain with four businessmen who it accuses separately of fraud in Dubai, legal documents show.
Bahrain resident Charles Ridley and business partners Ryan Cornelius, Erin Nil and Arthur Fitzwilliam have filed a civil suit in Manama requesting a precautionary attachment order on 245.5 million Bahrain dinars of the Islamic bank's funds held by the Central Bank of Bahrain, according to the filing.
— Zawya Dow Jones
