Tamweel announces record first quarter net profit of AED 50.47 million, up 395 per cent

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman of Tamweel, announced that the company's net profit in the first quarter of 2007 reached AED 50.47 million, an increase of 395 per cent compared to AED 10.19 million in the first quarter of 2006.

Islamic financing and investing assets in the first quarter of 2007 rose to AED 3 billion, an increase of 94 per cent compared to AED 1.55 billion in the first quarter of 2006.

Income from Islamic financing and investing assets in the first quarter of 2007 rose to AED 45.84 million, an increase of 90 per cent compared to AED 24.1 million in the first quarter of 2006.

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan said:

"I am extremely pleased to announce that Tamweel has begun this year with such robust results. Our strong performance in the first quarter of 2007 reflects both the overall strength of the UAE real estate market and the increasing demand for the innovative home finance solutions offered by Tamweel."

Adel Al Shirawi, Chief Executive Officer of Tamweel, said: "The UAE real estate market remains characterised by very high growth, which is supported by demand that is expected to outpace supply by AED 18 billion this year. The market is further supported by strong fundamentals, led by forecast real GDP growth in excess of eight per cent for this year and continued strong population growth. Equally important, we are witnessing a sustained surge in new companies setting up shop here in the UAE, especially in free-zone areas."

He continued: "The UAE mortgage market is growing in line with the country's economic expansion. Indeed, the mortgage market here is especially attractive as rental prices continue to increase. As the largest provider of home finance in the UAE, Tamweel continues to demonstrate its commitment to both the individual dream of home ownership and the sustained growth of the UAE national economy as a whole. The strength of that commitment is proved by our ongoing success."

He continued: "Consider that, in the first quarter of this year alone, Tamweel booked a record AED 894 million in financed properties, while our accumulated financing assets under service now stand in excess of AED 5.98 billion. In March, Tamweel's Annual General Assembly and Extraordinary General Assembly approved the distribution of a cash dividend of 20 per cent of the company's share capital, amounting to AED 200 million, providing the highest dividend yield for a share stock in the market. It also approved the issuance of US$300 million of convertible sukuk and US$500 million of non-convertible sukuk. Such innovative financial structuring, in addition to securitisation through instruments such as residential mortgage-backed securities, allows the company great freedom to invest in its growth."

He concluded: "On the retail front, following the remarkable response from homeowners and investors to our offerings such as Queue Point in Al Liwan and more recently Discovery Gardens, we look forward to providing further such opportunities in the coming months. Finally, as part of our international expansion plan, we are establishing our presence in new markets, including Egypt and Saudi Arabia, in the near future."