EIB gets Tayseer accreditation

Emirates Islamic Bank (EIB) on Tuesday became the first financial institution in the UAE to receive Tayseer-accreditation, the Land Department of Dubai said.
 
Authorisation from the department gives EIB access to the Dubai government-backed guarantee scheme and ensures it becomes the first lender to offer end-user funding for development projects under the provisions of Tayseer.

The move signals activation of the first phase of the initiative, which will have a key role in stimulating funding for completion of the next major round of Dubai property developments to come to market.

The move will accelerate completion of 40 'hand picked' projects within the Dubai Marina, Business Bay and Jumeirah Lake Towers districts.

These projects have been subject to strict scrutiny to meet Tayseer's criteria for inclusion and each is 60 per cent completed and sold with significant infrastructure framework already in place.

Prior to today's announcement, the major banks and developers operating in the UAE met senior officials in the Land Department just weeks ago to agree operational details for Tayseer.

A commitment was made at the time to seek to put in place a comprehensive legislative and procedural framework to support the operation of the Tayseer guarantee.

Sultan bin Butti bin Mejren, Director-General of the Land Department, said: “'EIB is the first of a select group of top rated financial institutions authorised to join the Tayseer scheme and we are now considering other applications. Our criteria for projects are strict and similarly so for financial institutions.

“These institutions have an important role to play as the flagbearers for an initiative, which will effectively complete the transformation of Dubai into one of the greatest metropolitan areas in the modern world. They will provide the finance at keenly competitive rates for development and end user funding and the Government, through the Land Department, will provide the guarantees. The bankers attending the preliminary meetings were told that the first 40 Tayseer projects were only the beginning and that successive phases would follow in the coming three years, each with a different focus which is likely to range from mid to mass projects.

Faisal Aqil, General Manager Retail Banking, EIB, said: “Tayseer promises to create a stream of opportunities for banks and investors. This initiative will grow and expand in coming years and become the new centre around which real estate development will take place in Dubai."
 

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