Cartwheels for Tamweel…
…for it was finally listed back on the Dubai Financial Market general index and banking sub-index
July 4, 2011 1:25 by p.deleon
So, it’s a huge week for Tamweel. Massive, in fact. Why the superlatives, you ask dear Kipp readers? Well, earlier this week Tamweel was finally listed back on the Dubai Financial Market General Index and the banking sub-index.
Of course, Tamweel, the ‘Home of Home Financing’ as they like to call themselves, just resumed trading a month ago after being suspended way back in 2008.
The fact that the home financing company has met the requirements to be listed on the DFM General Index and banking sub-index may not translate into a rise in shares; but it is a more of a symbolic achievement (especially when you consider that late 2008, Tamweel shares were suspended from trading when its shares sank more than 86 percent).
From then on, the fate of Tamweel seemed rather bleak, with rumours circulating that it would merge with Amlak under Abu Dhabi’s state-owned real estate bank. Though the deal didn’t go through, the rumours didn’t stop. Then finally in September 2010, Dubai Islamic Bank (DIB) took a majority stake of 57.33 percent in Tamweel. And shortly afterwards, Tamweel began new mortgage lending earlier this year.
And with Tamweel’s shares rising as much as 3.4 percent yesterday things are looking good. As Alembic HC Securities’s Jaap Meijer told The National last month: “Given Tamweel’s 30 per cent market share in retail mortgages, we believe it is well placed to benefit from the improving market dynamics as it moves from a restructuring mode in the past two years to a growth phase starting this year.” Well, we suppose having Dubai Islamic Bank’s support won’t hurt too much either.