Tamweel and Amlak to merge into realty bank

Dubai: Amlak Finance PJSC and Tamweel PJSC, the two leading UAE real estate finance providers, will be merged into a new entity under the umbrella of the Real Estate Bank, the Ministry of Finance announced on Saturday.

The ministry said it has begun the official procedures for the merger with the support of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The ministry said the merger of Amlak and Tamweel will contribute to the creation of a strong entity that will boost the property finance market.

"The merger is considered a landmark development for the financial market in the UAE. It will create a new entity that will serve as a cornerstone of the real estate finance market which has great fundamentals," the ministry said.

The merger will be based on the best international standards. The procedures involve financial and legal formalities, a separate assessment and approvals for the integration between the two companies.

Nasser Bin Hassan Al Shaikh, Director-General of the Dubai Department of Finance and Board Chairman of Amlak, said: "By the combined market expertise of both companies, the new real estate finance entity would enhance the additional value provided to customers through quality products and special financial support."

Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, Chairman of Tamweel, said the merged entity would enhance the trust of investors in both the financial and real estate sectors in the UAE. "The new entity will provide a solid ground for the UAE's economic growth, while the Real Estate Bank will benefit from the management expertise of both companies," he said.

Profile: creating a market leader

- The Real Estate Bank (REB) was founded in 1990 to support the building sector and provide appropriate housing for UAE citizens by supporting the Shaikh Zayed Housing Programme. It has more than 7,000 customers.

- Amlak is the UAE's leading Sharia-compliant finance provider with assets worth Dh14.2 billion in the first half of 2008. Tamweel is a leading property finance provider whose assets in the same period were worth more than Dh10.8 billion.