Construction industry boosted with government deal

Projects in Business Bay, Dubai Marina and Jumeirah Lake Towers will benefit from the agreement.

RELATED ARTICLES: UAE projects on hold are worth more than US $300bn | ME has $2.7 trillion in unawarded projects | Big 5 sees positive signs for upturn

A total of 40 projects have been shortlisted for the first phase of the Dubai Land Department's initiative to offer developers and investors a 'government guarantee'.

Details of Tayseer, which effectively guarantees finance and completion of the selected projects, have been revealed by officials.

The first phase of the initiative is aimed at boosting liquidity in the market and bolster confidence in the sector, Sultan bin Butti bin Mejren, director general of the Land Department, said.

Marwan bin Ghulaita, CEO of the Real Estate Regulatory Agency (RERA), said Tayseer was a four way partnership between Dubai Government, through the Land Department, the UAE's leading banks, developers and investors.

Bin Butti added: "The bigger picture is that through this and other related initiatives the Department is introducing a different, comprehensive and coherent level of strategic management to Dubai's property sector.

"This

Advertisement

FEATURED COMMENT Please click here to comment on this article

will offer clear transparency and in doing so inspire confidence among developers, end users and all those with an interest in Dubai's property sector."

He said that once a project had been examined and approved for Tayseer, it receives the Tayseer trademark, and a government guarantee that it will be completed and by a specific date.

"This is what the banks have been looking for in order to participate and we clear commitments from a group of banks to participate and offer both construction and end user funding," he added.

The focus of the first phase of this initiative are those projects which are under construction or almost finished.

These include developments in Business Bay, Dubai Marina and Jumeirah Lake Towers.

Bin Ghulaita said the guidelines for inclusion in Tayseer were "extremely stringent".

"There has to be a clear statement of the strength and ability of the contractors assigned to the project and the channels and flow of cash to them from the developer must be shown. Enforcement of the criteria offers the banks the comfort levels they need to participate fully," he added.
 

---