Tamweel profit soars as real estate stabilises

Abu Dhabi: Islamic home fin-ance provider Tamweel said yesterday its fiscal third quarter net profit rose a whopping 114 per cent year on year to Dh15.7 million, adding it demonstrated continued profitability during a period of increasing stability in the domestic property market.

Net profit for the first nine months of 2011 rose 295 per cent year on year to Dh70.7 million, the company said in a statement.

"Despite volatile conditions globally, the UAE continues to experience strong growth, which is reflected in the increasing stability of the country's property sector. As this important sector continues its sustained recovery, Tamweel will remain at the forefront of home finance by providing innovative home finance solutions," said Tamweel's Chairman Abdullah Ali Al Hamli.

"Last year was not a particularly good year for Tamweel. They obviously had liquidity issues and their provisions were high as well. This year, the trend for provisions is downward. That is why we are seeing higher growth in pofitability as compared to last year," said Shabbir Malek, an analyst with EFG-Hermes.