Amlak and Tamweel, the engines of the nation's mortgage industry, will be capitalised by federal funding, Sheikh Khalid bin Zayed Al Nahyan, Chairman of Tamweel revealed yesterday on the sidelines of the two-day Global Investment Forum.
Emirates Business had broken the story on the final structure of the lending bodies being revealed "in a few weeks time" and that both would restart lending soon, both of which were reconfirmed by Sheikh Khaled yesterday.
The long-awaited merger structure of the country's two largest mortgage lenders – Amlak and Tamweel – is only a few weeks away with the capitalisation of federal funds, he said. However, he refused to elaborate on final corporate structure of the merger.
"It is going to be within weeks. That is what we are hearing (from the regulators). You have to wait for the final proposal. The new structure will be there in a few weeks, and the lending will follow suit," he said.
The fate of merger of the two firms has been under review by a Federal Government committee this year since the UAE government announced in November it was merging them with two state-controlled banks. Trading in shares of both companies have been halted since then.
When asked if it would be a single or double entity merger, Sheikh Khaled said it was premature as the whole issue is under the consideration of Federal Government.
"Probably yes, and probably no – I can't say anything now. You have to ask the minister for the exact details of their proposals."
About his participation in the decision-making, Sheikh Khaled said he and Tamweel executives were consulted. "But now that is in the hands of the Federal Government. They will make the decision at the highest level. We have given our feedbacks and now waiting for the decision."
Referring to the new structure capital funding he said he did not know if funds will be used from Dubai's $10bn bond issues.
About the whole idea of the merger, Sheikh Khalid said it has been on the table for quite a long time. Elaborating on lending, he said Tamweel has already started lending.
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