Amlak and Tamweel begin merger

With the support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the UAE Ministry of Finance yesterday announced that it has started the official procedure to merge Amlak Finance and Tamweel, the two leading Shariah-compliant real estate finance providers in the UAE, under the UAE Real Estate Bank. The merger will create the largest real estate finance institution in the country.

An official from the ministry said: "The merger of Amlak and Tamweel under the Real Estate Bank is a milestone development for the UAE financial sector. The new entity will provide a strong growth platform for real estate financing in the UAE."

The combining of operations will ensure shareholders and customers are treated fairly. The approach will be based on international best practices with steps that include financial and legal due diligence, independent valuation, regulatory and other approvals, the ministry stated.

Nasser bin Hassan Al Shaikh, Director General, Department of Finance and Chairman, Amlak, said: "By leveraging the combined expertise of Amlak Finance and Tamweel, the Real Estate Bank will enhance the value proposition for customers with broader product capabilities, and meaningful operational and financial synergies." Sheikh Khalid bin Zayed bin Saqer Al Nehayan, Chairman of Tamweel, added: "The new entity will further strengthen investor confidence in the financial and property sectors in the UAE, and create a robust platform for growth for the entire economy.

The Real Estate Bank was formed in 1999 to support real estate and provide housing for nationals through the Sheikh Zayed Housing Programme.

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