UAE working on mortgage law

UAE working on mortgage law, says Al Suwaidi. (FILE)

The UAE is working on a mortgage law which will make it easier for people to buy residential units, UAE Central Bank Governor said.

Without announcing further details, Sultan bin Nasser Al Suwaidi said: "We are now working on new mortgage loan regulations that will make it easier for individuals to purchase units."

He also said the UAE also plans to implement new banking sector rules that will regulate credit extended to consumers.

He said the UAE real estate market is not well organised and not one unit, they are different units.

"We are going to come up with new regulations to regulate credit extension, for example, for mortgage loans. You will see new regulations coming which will make it easy for individuals to have a sound financial position," Al Suwaidi said.

Speaking at the seminar, the Central Bank governor said the government has also set up a committee to look into the Amlak issue.

The UAE government said in late 2008 that it would merge Amlak Finance and Tamweel and has been working on a plan to restructure them. Shares in the two firms have not traded since. But last month, Dubai Islamic took majority stake in Tamweel leaving Amlak's fate hanging in balance.

Sources told Emirates 24|7 on Wednesday that three Islamic banks - Emirates Islamic Bank, Dubai Bank and Noor Islamic Bank - are considering merger and then the merged entity will take over Amlak.

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