Tamweel restructuring

Dubai: Mortgage lender, Tamweel PJSC - a company which is currently under merger process with Amlak - is restructuring its business plans and organisational structure that involves a reduction of 57 staff members from its workforce, the company said in a statement.

The reason given was to enable the company to be in a stronger position to meet its objectives in the challenging environment that financial institutions are facing at present.

Wasim Saifi, group chief executive of Tamweel, said the job cuts were necessary in order for the company to function more efficiently.

"The company intends to continue with renewed focus on its core business of home finance by enhancing operational efficiency," Saifi said in a letter to the Securities and Commodities Authority in Abu Dhabi.

The news comes after Tamweel and fellow mortgage provider, Amlak, merged in to an $8 billion lender, government-owned, Emirates Development Bank.

The Emirates Development Bank was created after merging not only Dubai-based Amlak and Tamweel, previously the UAE's largest mortgage providers, but also the Real Estate Bank and Industrial Bank.

The Real Estate bank was originally set up to provide home financing to UAE nationals back in 1999.

However, since then, there has been a never-ending stream of people moving to Dubai and wanting to buy homes.

The merger showed that the government had the willingness and, more importantly, the funds to support the UAE's banks.

Analysts have said the merger would enhance liquidity and the increased availability of mortgages and home finance would boost buying activity in Dubai.

Due to the current lack of home financing, buying activity has reduced, resulting in higher rents.

However, analysts have coined 2009 as the year of the end-user, forecasting widespread mortgage availability and cheaper property prices.

Emirates Development Bank will have access to government funds.

Amlak said it would also discuss the possibility of job cuts at its board meeting on January 31.