Local Business

Dubai Islamic Bank, Union Properties sign finance deal

Staff Report
Filed on August 6, 2014

Dubai Islamic Bank, or DIB, announced on Monday that it has signed an agreement with Union Properties PJSC, the property developer, to provide it with an Dh360 million re-financing facility.

The Islamic re-financing 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 Ahmed Al Marri, General Manager of Union Properties signed the agreement in the presence of senior executives from both institutions at a signing ceremony held recently.

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 amongst the most attractive markets in the world for business growth and prosperity. The expatriate population has seen a significant rise over the recent past as the nation relentlessly progresses towards establishing itself as the hub for regional and global names. With key regulations in place and optimum enforcement of the same by relevant authorities, the industry is now on a solid and sustainable growth path. 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.

— business@khaleejtimes.com

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