United Arab Bank (UAB), the Sharjah-based lender, has lowered its residential mortgage rate to 3.99 per cent, down from 5.49 per cent, making it the lowest home lending rate on the market.
The new rate, effective immediately, is part of the bank's efforts to bolster the UAE's property market, says Paul Trowbridge, the chief executive of UAB.
"It is another step towards supporting the recovery of the UAE real-estate market from both consumer and developer perspectives," Mr Trowbridge says.
"The bank is rapidly establishing itself as a key player in the UAE home-finance sector. This new initiative further re-emphasises our overall strategy to focus on UAE nationals and committed expatriates and offer products that match their needs and aspirations.
"We strongly believe this will bring renewed impetus to the mortgage market and gives our target customers an opportunity to own their own home with the most competitive interest rate."
UAB, which is 40 per cent owned by Commercial Bank of Qatar, says its new mortgage rate is open to salaried and self-employed Emiratis, as well as expatriates. The mortgage is offered under conventional and Islamic financing options.
"Our mortgage product offers affordability and flexibility, while at the same time addresses the customer's needs with an innovative risk-based pricing model," says Tom Smith, the bank's executive vice president and group head of retail banking.
For more information go to www.uab.ae.
Sharjah Islamic Bank (SIB), the Sharia-compliant lender, is hoping to take advantage of an "ideal investment climate" in Abu Dhabi with the opening of its first Priority Banking Centre in the capital.
The Priority Banking Centre, located on Electra Street, caters to the bank's VIP clients and will offer a range of value-added services in wealth management.
"The ideal investment climate in Abu Dhabi, coupled with the UAE's solid legal infrastructure for banking activities, prompted us to open SIB's third Priority Banking Centre," says Mohammed Abdullah, the chief executive of SIB.
"Islamic banking in the region is seeing noticeable demand-driven growth and increasing consumer confidence due to the high quality and flexibility of Sharia-compliant banking products. This demand is spurring major expansion in banking services and opening up new vistas for future banking projects."
SIB, which was known as National Bank of Sharjah, switched to Islamic banking in 2002.
Meanwhile, SIB is offering customers a zero per cent finance scheme to enable them to perform Haj and Umrah. Terms and conditions apply, but the promotion allows customers to pay instalments over a year without any profit or additional fees.
For more information, go to www.sib.ae.