Text size:

  • Small
  • Normal
  • Large

Tamweel disputes to be moved into Dubai courts system

Financial disputes involving Tamweel are shifting from a special committe set up three years ago to courts in Dubai.

Disputes involving Tamweel, an Islamic home finance company based in Dubai, are being shifted to the emirate's courts and away from a special committee set up three years ago to resolve its financial problems. The decision came in a decree last month from Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.

Tamweel revealed the information only yesterday, however, on the website of the Dubai Financial Market (DFM), where its shares are listed.

The decree required "the transfer of all legal cases, applications, complaints and disputes filed against Tamweel before the special committee to Dubai Court of First Instance", Varun Sood, Tamweel's acting chief executive, said in a letter to the DFM. Moving cases into the courts could speed the resolution of numerous claims against the company.

Tamweel shares promptly declined on the news to a record low since its listing in 2006.

The committee was formed in late 2008 when company executives and government authorities tried to orchestrate a merger between Tamweel and Amlak Finance, another major Islamic home finance provider, to prevent both from failing. After two years of deliberations, the merger was scrapped because of the high cost of returning the companies to financial health.

They both had relied heavily on short-term external financing to maintain a portfolio of mortgages collectively worth more than Dh20 billion (US$5.44bn).

When the crisis hit, however, their financing lifelines were cut off and they did not have deposits or other sources of funding to fall back on. Trading of both companies' shares ceased as the merger talks continued. Late last year, Dubai Islamic Bank, which had a major stake in Tamweel, paid Dh375 million to take over the company and has since made it a conduit for Islamic mortgage lending.

Tamweel began offering financing again in January. Its shares resumed trading in May.

afitch@thenational.ae

Back to the top

More articles


Editor's Picks

 Would you like it in blue? An Afghan shopkeeper shows a burqa to a customer at a bazaar in Herat. (Aref Karimi / AFP /  April 13, 2014)

In pictures: Best business images for the week to April 24, 2014

Here are some of the best business images for the week to April 24, 2014.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 Cityscape Abu Dhabi 2014 will run until April 24, 2014. Fatima Al Marzooqi / The National.

In pictures: Cityscape Abu Dhabi 2014 opens
at Adnec

Key developments and master plans are being unveiled at this year’s property exhibition in the capital.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National