Dubai Islamic Bank announces the conclusion of stake increase in Tamweel
DIB’s stake increased to 57 per cent.
October 1, 2010 9:18 by Rasha Reslan
Dubai, September 26, 2010: In light of the announcement from His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on the strategic direction given for the UAE’s key mortgage entity, Tamweel, Dubai Islamic Bank is pleased to state that the discussions with all major shareholders of Tamweel have been successfully concluded.
With the closure on this transaction, Dubai Islamic Bank will now increase the bank’s stake to 57 per cent, thereby becoming the majority shareholder and gaining management control of the company.
“The transaction marks an important milestone for the bank and the UAE property market”, said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“Dubai Islamic Bank has always been committed to the growth and prosperity of Dubai and the UAE, and we hope that this landmark deal will have a positive impact not only for the real estate sector but the UAE’s overall economic environment,” he added.
With the support and direction bestowed by the Government of Dubai, the entire process was concluded in a span of a few months.
“All majority shareholders of Tamweel, including Isthitmar, DIG, and DCG amongst others, are satisfied with the process”, said Abdullah Al Hamli, Chief Executive Officer, Dubai Islamic Bank. “Through this transaction, DIB will effectively buy out the larger stakeholders and be in a position to provide strong support to the mortgage lender going forward.”
“Over the years, liquidity had been one of DIB’s many strengths, and this enables us to constantly look out for opportunities to maximise the returns to its shareholders and customers,” said Dr. Adnan Chilwan, Chief of Retail and Business Banking, Dubai Islamic Bank.
“Having launched Tamweel ourselves and having maintained a close association with the company over the years, we have gained an extremely thorough understanding of Tamweel’s business. This has put DIB in a unique position to identify key synergies which we feel will have a rewarding impact for stakeholders across both organisations.”
Dubai Islamic Bank would like to thank His Highness, Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, and Ruler of Dubai, and the Government of Dubai for the help and support provided to successfully close this vital deal.