Tamweel lends vigour to market

Dubai: After a hiatus of two years, Islamic mortgage lender Tamweel is back in business, offering home loans of up to 80 per cent of the current value on completed residential properties in Dubai and Abu Dhabi.

In a sluggish market characterised by mortgage defaults and bank provisions, this news is expected to inject some positivity into the real estate market.

"While the past two years have been extremely challenging for the company — during a period of unprecedented turmoil in the global real estate and financial services sectors — we have persevered. With a renewed focus on prudence and conservatism, we are focused on booking a high-quality portfolio of select customers and properties," says Varun Sood, chief executive officer, home finance division, Tamweel.

According to Yohannes Mazeingia, managing director, ISDM Consultancy, a Dubai-based debt management firm, "New home buyers will take advantage of the depressed property prices. Existing mortgage holders will continue to struggle to meet their mortgage obligations in view of the still sluggish economic environment. It will be even more welcome news if Tamweel could restructure existing mortgages to ease the financial pressure on its borrowers."