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Tamweel posts Dh7.3m profit in third quarter

DUBAI - Dubai’s Islamic home financier Tamweel on Tuesday reported a 29 per cent decline in its third quarter profit as income from Islamic financing and assets fall. Net income for the third quarter fell to Dh7.3 million from Dh10.3 million a year earlier, Tamweel said in a statement to the Dubai
 Financial Market.

Income from Islamic financing and investments dropped to Dh129 million from Dh178 million, according to the statement.

Operating income of Tamweel fell 15 per cent to Dh165.2 million. It’s impairment provisions were reduced to Dh46.6 million from Dh52.6 million.

Dubai Islamic Bank raised its stake in Tamweel to 57 per cent from 21 per cent in September to help 
boost lending.

The home finance company expects to book Dh100 million of new home loans a month when it restarts home financing, Chief Executive Officer Wasim Saifi said on October 5.

Beginning November 1, 2010, Tamweel starts offering up to 80 per cent financing of the current value of ready residential properties in Dubai and Abu Dhabi. Demonstrating its commitment to meeting the needs of end users, the company is extending finance to salaried and self-employed residents who meet the required eligibility criteria.

“Tamweel is back in business,” said Varun Sood, Chief Executive Officer, Home Finance Division, said in a statement on October 31.

“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. All of us at Tamweel are grateful for the support of our stakeholders over that period,” Sood added.

“With a renewed focus on prudence and conservatism, we are focused on booking a high-quality portfolio of select customers and 
properties,” he said.

“Today, our mission is to contribute to the stability and growth of the UAE real estate market, and to ensure that individuals can avail of the same high standard of products and services that made Tamweel a benchmark for the home finance industry.”

—abdulbasit@khaleejtimes.com