Dhs110 million hit in first month by money firm

Up to 65% of freehold home buyers are non-Arabs, says Tamweel

  • E-Mail
By  Eudore Chand Published  April 24, 2004

Some 65% of all loans extended for financing home purchases in Dubai have been availed of by non-Arab foreigners, according to the newly launched home finance firm, Tamweel. The new firm, in its very first month of operations, has notched up a turnover of Dhs110 million, reflecting the hyperactivity in the emirate’s real estate sector, which has opened up some its more prestigious developments for sale to non-UAE nationals on a freehold basis. Khaled Al Kamda, Tamweel chairman told Construction Week, that client applications have poured in from a wide cross-section of people. “We have received applications for home financing from UAE and GCC nationals, from expatriates and from foreigners from outside our region”. As the freehold properties are in new upmarket waterfront developments, even UAE nationals, who have the whole country [except Abu Dhabi] to choose from, have been infected by the foreigner-driven rush for freehold property in Dubai. Tamweel says loans extended to UAE nationals so far accounted for some 14% of total home purchases financed by Tamweel. Other Arabs accounted for another 21%, bringing the Arab client mix to 35%. The balance demand came from foreigners. With almost 25%, Westerners led with Europeans accounting for 19% of the loans and North Americans for 5%. South Asians accounted for 17% and South East Asia and the Far East for 2%. Demand from loans from other nationalities stood at about 20%. Tamweel estimates the total home finance market to be worth some Dhs15 billion over the next five years. “Real estate projects in Dubai and the UAE require multibillion dirham financing. There is a need that will continue to grow for years to come and it tells us how the economy of the country is also growing,” Al Kamda said. Tamweel is a joint initiative of Dubai Islamic Bank and Dubai’s Ports, Customs and Free Zone Corporation’s Istithmar. The home finance firm is capitalised at Dhs1 billion and has had an unparalleled launch receiving in its first 30 days more than 3000 applications and over 10000 calls and inquiries. “Our successful market entry is attributed to a combination of a variety of product options and unique features, along with customer service and professionalism,” said Al Kamda. “We worked hard to create something that has all the ingredients for success. We worked very hard to research the market and to study what it needs. The marketplace is highly competitive. That we have been so gratifyingly successful, is indeed a just reward for all the work that went into the formation of Tamweel,” Al Kamda stated. He said Tamweel is now looking forward to building on the solid foundation of its hugely successful launch. “We have had a good beginning and we want to sustain the momentum that we have gained. We shall endeavour to better our performance as time goes by and to better serve our customers, our promoters and the marketplace.”

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code