Dubai: Dubai Islamic Bank (DIB) has signed an agreement with Union Properties PJSC, the property developer, to provide it with an Dh360 million refinancing facility.

The Islamic refinancing facility from Dubai Islamic Bank (DIB) will assist Union Properties (UP) to effectively manage its balance sheet and to enhance focus on its core business/expansion plans as the developer looks to capitalise on the opportunities currently available in the real estate market. Emerging strongly from the financial crisis, the developer is moving forward with its growth plans after having repaid Dh7 billion worth of legacy bank debt.

Dr. Adnan Chilwan, CEO of Dubai Islamic Bank, and Ahmad Al Merri, General Manager of Union Properties, signed the agreement in the presence of senior executives from both institutions at a signing ceremony held recently.

Strong rebound

Commenting on the agreement, Dr. Adnan Chilwan said: “The real estate sector in the UAE has rebounded strongly on the back of the economy’s core fundamentals. The current and planned infrastructure of Dubai and the UAE positions the country among the most attractive markets in the world for business growth and prosperity,” said Chilwan.

“Given the current scenario, quality names like Union Properties are uniquely positioned to capitalise on the opportunities that Dubai and UAE represent, and DIB with its rich heritage, expertise and highly liquid balance sheet, is the ideal partner for such strategic names.”

Real estate transactions in the UAE have grown at a rapid pace since 2012, with the volume of deals in Dubai increasing by about 50 per cent over the past year — excluding remortgages and donations — according to Dubai’s Real Estate Regulatory Agency. Standards & Poor’s suggests that prices in the sector will continue to remain stable and will be backed by the strong macroeconomic growth in the UAE.

“Over the past few years, Union Properties has focused on strengthening its capital position by investing in its core fundamentals and repaying its legacy debt. As we have now successfully completed all these payments, we are well placed to move forward with our new growth strategy that is backed by our positive financial performance,” said Al Merri.