Islamic mortgage firm Tamweel is liquidating four of its dormant subsidiaries which were set up in 2007 to target Saudi Arabian market, according to the company’s financial statement.
Listed with Jebel Ali Free Zone Authority, the four companies under liquidation are Tahfeez Saudi Arabia Ltd, Tamleek Saudi Arabia Ltd, Eshan Saudi Arabia Ltd and Enjaz Saudi Arabia Ltd and were involved in general trading sector. The subsidiaries had not even started the operations since their launch. Its Tahfeez Middle East subsidiary has also not yet initiated the operations.
The kingdom-focused units were set up in 2007 financial year with offices opened in Riyadh as part of its expansion to tap the growing mortgage in the Gulf Cooperation Council region. The company also opened offices in Cairo, Egypt, during the same year.
“2008 is seen as a year of expansion into other Middle Eastern countries in order to bring Tamweel closer to its vision of becoming a regional player in the home financing industry,” the company’s 2007 financial statement said.
“During 2007, Tamweel experienced sustained growth in both assets and net profitability from its core business, while also maintaining low cost-to-income ratios despite our rapid and aggressive regional expansion strategy, starting with the establishment of our presence in Saudi Arabia and Egypt, the two largest markets,” its chairman Sheikh Khaled Bin Zayed Bin Saqr Al Nehayan said in 2007 financial statement.
On September 26, Dubai Islamic Bank said it had raised its stake in Tamweel to 57.33 per cent which resulted in scrapping the long-planned merger with its rival Amlak Finance.
The UAE government said in November 2008 it aimed to merge two mortgage firms and has been working a plan to restructure them. Shares in the two firms have not traded since.
In a statement to Dubai bourse on October 17, the Shariah-compliant mortgage lender said it would hold its first annual general meeting (AGM) in more than two years on November 10, 2010.
The meeting will approve the company’s balance sheet and P&L accounts, appointment of the Board of Directors and reappointment of the Fatwa and Shariah Supervisory Board.