Dubai, the desert sheikdom where home prices have plunged 65 percent since 2008, risks re- inflating its property bubble with the help of mortgage lenders offering easy terms and the lowest rates ever.
Dubai Islamic Bank PJSC paid 374.7 million dirhams ($102 million) to buy a controlling stake in Tamweel PJSC as the United Arab Emirates’ biggest Islamic lender sought to boost mortgage financing in Dubai.
Emirates NBD PJSC reported a 62 percent decline in fourth-quarter profit as the United Arab Emirates’ biggest bank by assets boosted bad loan provisions and said it sees lending growing by 4 percent this year.
The United Arab Emirates central bank issued new guidelines on retail loans and fees as well as capped personal loans at 20 times a borrower’s monthly salary in a bid to control lending and curb excessive charges.
Islamic bonds of Tamweel PJSC , the United Arab Emirates-based mortgage lender, have failed to benefit from the Dubai World debt accord after being the worst performing sukuk in the country in the past five months.
Qatar Islamic Bank SAQ, the Persian Gulf country’s biggest Shariah-compliant lender, posted a 27 percent jump in second-quarter profit, topping analysts’ estimates, as income from investments increased.