Lenders Amlak, Tamweel May Be Merged Into New Islamic Bank

Amlak Finance PJSC and Tamweel PJSC, the United Arab Emirates mortgage lenders being reorganized by the federal government, may be merged into a new Islamic bank, the country’s economy minister said.

“The final proposal is to have an Islamic bank that operates like any other Islamic lender but with a bigger focus on property finance,” Sultan Bin Saeed al-Mansouri told Dubai Television today. “The federal government will have a capital contribution.”

Amlak and Tamweel’s investors may own a third of the new bank, while the federal government and Dubai’s government may share the remaining stake equally, al-Mansouri said. The proposal, which requires approval from the Council of Ministers, may be passed before the end of this year, he said.