Tamweel first quarter net profit reaches Dhs176.34m, highest in UAE real estate finance sector

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman of Tamweel, announced that the company's net profit in the first quarter of 2008 reached Dhs176.34m, an increase of 249% compared to Dhs50.47m in the first quarter of 2007.

Islamic financing and investing assets in the first quarter of 2008 rose to Dhs6.63bn, an increase of 120% compared to Dhs3.01bn in the first quarter of 2007.

Income from Islamic financing and investing assets in the first quarter of 2008 rose to Dhs139.51m, an increase of 128% compared to
Dhs61.23m in the first quarter of 2007.

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan said:

"I am very pleased that Tamweel has yet again delivered outstanding results and reaffirmed its industry-leading position. Posting the highest first quarter net profit in the UAE real estate finance sector is truly a phenomenal achievement for Tamweel and underlines our commitment to maximising shareholder value. Being at the pinnacle of the industry and consistently demonstrating such robust performance also means that we are redefining the success of the real estate finance industry every step of the way."

Wasim Saifi, Chief Executive Officer of Tamweel, said that the remarkable performance was spurred by both solid business development and funding diversification "The property market in the UAE and the wider region has surged rapidly, despite instability in global markets. Tamweel has successfully capitalised on this intensifying demand through the introduction of innovative products and processes. This has had an immense impact in propelling our business to new heights in the first quarter of this year."

He continued: "In the first three months of this year alone, Tamweel booked a record Dhs2.54bn in financed properties, while our accumulated financing assets under service are now, more than Dhs11.52bn. A cash dividend of 21.8% of the company's share capital, amounting to Dhs218m, was approved at the Annual General Meeting this year. Setting new standards with funding diversification, our $300m exchangeable Sukuk issue was oversubscribed within just hours of announcement.

"Following a business re-engineering initiative, we pushed ahead with the introduction of the 48-hour end-to-end approval process, the fastest in the UAE. Our vision to replicate our local success across other markets was realised when we established our presence in Saudi Arabia and received licence to launch operations in Egypt."

He added that Tamweel's rich product expertise is acknowledged in the industry and reflected in the prestigious awards it won in the first three months of 2008. These include "Best Islamic Home Finance Product" at the Banker Middle East Awards; "Islamic Finance Deal of the Year" at the Euromoney Awards; "Structured Finance Deal of the Year Award" from Islamic Finance News; and a Superbrand award from the UAE Superbrand Council.

Saifi added: "Looking ahead, Tamweel's core strategies for growth will be driven by even greater focus on unmatched service and product differentiation, securing our home base and expanding internationally. This, we believe, will ensure the company's sustained growth and strong performance in the months and years to come."