Thursday, 17 March 2011

Dubai's DIFC creating new mortgage bond market to boost UAE real estate - The National

The Dubai International Financial Centre has laid the groundwork for establishing a new UAE mortgage bond market, based on Denmark's property market, which investors say could revitalise the Emirates' real estate sector.

The DIFC, in conjunction with Absalon Project, a joint venture between Denmark's VP Securities and Soros Fund Management, is launching a feasibility study for private residential mortgages funded by the issuance of standardised bonds.

The DIFC hopes that the proposals will create a large and liquid mortgage bond market in the UAE, jolting the country's property sector back into life after a prolonged slump, while avoiding the excesses related to mortgage-backed securities in the US subprime mortgage sector.

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