Abu Dhabi Finance Company Sees Lending at Dh1b by November

ABU DHABI — State-backed mortgage provider Abu Dhabi Finance Co expects its total lending to exceed Dh1 billion ($272.3 million) by November as demand for property increases, the firm’s CEO said on Tuesday.

By (Reuters)

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Published: Thu 6 Aug 2009, 1:38 AM

Last updated: Thu 2 Apr 2015, 3:43 AM

Philip Ward also said the company, majority-owned by the Abu Dhabi government investment agency Mubadala, would break even within five years.

“As of end-July, we received applications for Dh770 million and Dh600 million is approved for lending. By November we will cross the 1 billion mark if you look at the trajectory,” Ward told reporters. Launched in November 2008, Abu Dhabi Finance is 52 per cent owned by Mubadala with the remainder held by Aldar Properties, Sorouh Real Estate and Abu Dhabi Commercial Bank. The company, which has a capital of Dh500 million, has not yet turned profitable but it will break even “certainly not beyond five years,” Ward said.

Abu Dhabi’s property market remains robust due to strong economic fundamentals coupled with an increase in the working population and a shortfall in residential supply that is forecast to continue for four to five years, he said. “All this taken together, there is a very positive outlook for the medium and long-term market in Abu Dhabi,” Ward said. The mortgage market has improved in the last three months after slowing down in April and May. “The appetite for mortgages is healthy in the short to medium term,” he said, adding that mortgage penetration was still below 10 per cent.



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