Islamic home loans provider Tamweel has announced a 29% drop in net profit to $19.7m for 2012 on the back of largely flat sales of $164.2m (2011: $163.6m).
The company blamed provisions made for “certain ongoing litigations” for the drop in profit, stating that its operating for the year was higher than in 2011. It added that although it had made full provisions for potential losses, it was “continuing to fight its rights” in the case.
The company, which is currently the subject of a bid from its majority shareholder Dubai Islamic Bank, said that it “continued to the capitalise on the upturn in the UAE property market”.
“As the company moves forward, we are uniquely positioned to play a full and active role in supporting the home finance needs of people looking to purchase property in the UAE,” said chairman Abdulla Ali Al Hamli.
Acting CEO Varun Sood added: “As the recovery of the UAE property sector gathers pace – with average home prices increasing between 10% to 15% over an 18 month period – Tamweel’s innovative, customer-centric solutions will
keep us at the forefront of the country’s home finance market.”
During the year, the company paid off all external investors in a $210m securitisation deal arranged in 2007 and arranged a new $300m sukuk.
