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Tamweel, DIB, Deyaar decline on Deputy CEO's arrest
Tamweel PJSC, the United Arab Emirates' second-biggest mortgage lender by market value, fell to its lowest in almost a year after confirming its deputy chief executive officer was detained in an embezzlement case.
- Bloomberg
- Published: 17:00 September 10, 2008
- Image Credit: Gulf News Archive
- Dubai Islamic Bank declined 4.5 percent to 6.61 dirhams, while Deyaar retreated 4 percent to 1.69 dirhams.
Dubai: Tamweel PJSC, the United Arab Emirates' second-biggest mortgage lender by market value, fell to its lowest in almost a year after confirming its deputy chief executive officer was detained in an embezzlement case.
Dubai Islamic Bank, the owner of about a fifth of Tamweel and 41 percent of Deyaar Development PJSC, also retreated.
Deyaar's former CEO Zack Shahin was arrested earlier this year in an embezzlement case.
Tamweel lost 4 percent to 4.99 dirhams, the lowest since Oct. 21. The shares tumbled as much as 12 percent earlier, the company's biggest one-day drop ever. Dubai Islamic Bank declined 4.5 percent to 6.61 dirhams, while Deyaar retreated 4 percent to 1.69 dirhams.
"While few investors have access to the management to find out what is happening, the majority are in the dark about the details and hence can't be blamed for selling when they see members in the upper management getting locked up," Mohammed Ali Yasin, the managing director of Shuaa Securities in Dubai, said in a telephone interview on Wednesday.
"Companies related to Dubai Islamic Bank will suffer until investors get a clear view of these cases and their impact."
Tamweel's Abdulla Nasser Abdulla was detained by Dubai government authorities in connection with an "ongoing investigation," the Dubai-based Islamic finance company said in a statement to the Dubai bourse on Wedenesday.
Tamweel, Deyaar and Dubai Islamic Bank, the sheikhdom's largest lender complying with Muslim banking rules, all have former employees under investigation by authorities for embezzlement. News of the investigation first broke in April and has also led to the arrest of a UAE senior country officer of JPMorgan Chase & Co, a former employee of Dubai Islamic Bank.
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