UAE - Sharjah - Nov 03 - 2010: Tamweel office at Business Avenue building in Deira. ( Jaime Puebla - The National Newspaper )
DIB is channelling most of its mortgage business to Tamweel, as the company resumes lending for the first time in two years.

Dubai Islamic Bank mortgages go to Tamweel

Dubai Islamic Bank (DIB) says it will transfer most of its mortgage activity to Tamweel after taking a majority stake in the Islamic home finance company.

The move comes as the mortgage company resumes lending for the first time in two years.

"They are channelling most of their mortgage business to Tamweel as a subsidiary," said Sheikh Khaled bin Zayed Al Nehayan, the departing Tamweel chairman, in an interview in Dubai.

Sheikh Khaled is stepping down from his position as the chairman of the company. He also sits on the board of DIB, a position he does not plan to relinquish, and is the chairman of Salama, an Islamic insurance company, and the Bin Zayed Group, a family conglomerate, along with several other positions.

"It's a subsidiary, so now you need people from the management [of DIB on the board] to make sure there is efficiency to add value and utilise the IT and the back office of DIB," Sheikh Khaled said.

Tamweel, the UAE's second-largest Islamic mortgage company, froze lending two years ago after Dubai's property bubble burst and its funding model cracked under the stress of the financial crisis.

The company's fate has been closely watched as an indicator of Dubai's emergence from the crisis following the agreement last month between Dubai World and its creditors to restructure US$24.9 billion (Dh91.45bn) of debt.

Tamweel started doing business again shortly after DIB, which helped found the company in 2004, raised its stake to 57.3 per cent in September and began pumping in money.

DIB is putting Dh100 million into Tamweel every month to finance home purchases through vehicles that comply with Islamic law's prohibition on charging interest, Sheikh Khaled said. Analysts and mortgage brokers have said they do not expect the resumption of lending at Tamweel to provide a significant boost to Dubai's property market, although any extra financing capacity would be welcome in a market where prices have halved, on average, since the peak in 2008.

Tamweel was providing between Dh500m and Dh700m of financing every month during Dubai's property boom in 2008, Wasim Saifi, the Tamweel chief executive, told Bloomberg earlier this week.

"If we do Dh100m a month now, it would be a respectable number in the current market," Mr Saifi said.

A new board for Tamweel would inject new life into the company and position it to reduce costs and return to growth, Sheikh Khaled said.

"We'd like to see more profitability and that can only be achieved by reducing some of the costs and getting more business," he said.

Shares in Tamweel, which is listed on the Dubai Financial Market (DFM), have been suspended since November 2008, when a government-led panel began to contemplate a merger with Amlak Finance, the country's other major Islamic home financier.

Despite numerous attempts at a resolution, that plan fell apart when DIB raised its stake in Tamweel by buying 339.3 million shares from Istithmar World, Dubai Capital Group and the DFM.

Trading in Tamweel shares should start again soon, Sheikh Khaled said, but the timing would be up to the company's new board of directors.

That new board would help integrate DIB's mortgage division with Tamweel's, effectively making Tamweel an Islamic mortgage-financing arm of DIB, he said.

"You need people who are going to be working on how to streamline the business with DIB," he said.

Tamweel's board is set to meet tomorrow to discuss the appointment of new members and approve financial statements for 2008 and last year.


Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now

The Specs

Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now

Sui Dhaaga: Made in India

Director: Sharat Katariya

Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav



Directed by: Michael Fimognari

Starring: Lana Condor and Noah Centineo

Two stars

Inside Out 2

Director: Kelsey Mann

Starring: Amy Poehler, Maya Hawke, Ayo Edebiri

Rating: 4.5/5

UAE currency: the story behind the money in your pockets
The specs

Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)


Norwich City 1 (Cantwell 75') Manchester United 2 (Aghalo 51' 118') After extra time.

Man of the match Harry Maguire (Manchester United)


Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded


Director: Mohamed Kordofani

Starring: Siran Riak, Eiman Yousif, Nazar Goma

Rating: 5/5

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

Most Read
Top Videos