UAE's leading mortgage lenders merge into realty bank

DUBAI: In a move to stave off the global economic crisis, UAE's leading real estate mortgage providers Amlak Finance and Tamweel will be merged into a new entity under the umbrella of the Real Estate Bank.

The country's Finance Ministry had on Saturday said that official procedure for the merger has begun. The ministry said the merger will contribute to the creation of a strong entity that will boost the property finance market.

"The merger is considered a landmark development for the financial market in the UAE. It will create a new entity that will serve as a cornerstone of the real estate finance market which has great fundamentals," the ministry said in a statement. The merger talks began on October 4.

Dubai Department of Finance Director General and Amlak Board Chairman Nasser Bin Hassan Al Shaikh said, "By the combined market expertise of the companies, the new real estate finance entity would enhance the additional value provided to customers through quality products and special financial support."

Tamweel Chairman Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan said the merged entity would enhance the trust of investors in both the financial and real estate sectors in the UAE.