Emirates Islamic Bank first to sign as Tayseer accreditation begins
- United Arab Emirates: Tuesday, August 03 - 2010 at 15:31
- PRESS RELEASE
Emirates Islamic Bank (EIB) has become the first financial institution in the UAE to receive Tayseer-accreditation, the Land Department announced today. Authorisation from the Department gives EIB access to the Dubai Government-backed guarantee scheme and ensures it becomes the first lender to offer end user funding for premium development projects under the provisions of Tayseer.
The move signals activation of the first phase of the Tayseer initiative which will have a key role in stimulating funding for completion of the next major round of Dubai property developments to come to market.
The move, which has been warmly welcomed by UAE financial institutions, developers and investors alike, will accelerate completion of 40 'hand picked' premium projects within the Dubai Marina, Business Bay, and Jumeirah Lake Towers districts. These projects have been subject to strict scrutiny to meet Tayseer's criteria for inclusion and each is 60% completed and sold with significant infrastructure framework already in place.
Prior to today's announcement the major banks and developers operating in the UAE met senior officials in the Land Department just weeks ago to agree operational details for Tayseer. A commitment was made at the time to seek to put in place a comprehensive legislative and procedural framework to support the operation of the Tayseer guarantee.
After signing the Memorandum of Understanding (MoU) with EIB today to take the first step towards putting together a group of funding institutions, Mr. Bin Butti said: 'Today marks a new era for Dubai's real estate sector which has moved to a new level of maturity with a guaranteed funding infrastructure in place that is unparalleled across the world.
'EIB is the first of a select group of top rated financial institutions authorised to join the Tayseer scheme and we are now considering other applications. Our criteria for projects are strict and similarly so for financial institutions.
'These institutions have an important role to play as the flagbearers for an initiative which will effectively complete the transformation of Dubai into one of the greatest metropolitan areas in the modern world. They will provide the finance at keenly competitive rates for development and end user funding and the Government, through the Land Department, will provide the guarantees.
'Nothing comparable exists on this scale in terms of Government-backed guaranteed real estate development finance and the institutions participating can rest assured their returns are fully protected by the 'stress test' involved in applying RERA's criteria to the approved projects.'
The bankers attending the preliminary meetings were told that the first 40 Tayseer projects were only the beginning and that successive phases of Tayseer would follow in the coming three years, each with a different focus which is likely to range from mid to mass projects.
Mr. Aqil said: 'Tayseer promises to create a stream of opportunities for banks and investors. This initiative will grow and expand in coming years and become the new centre around which real estate development will take place in Dubai.
'The groundwork has been laid and Tayseer, which we are only too happy to participate in, will ensure completion. For institutions such as ours Tayseer is all about opportunity and protection. It offers a winning formula.
'Emirates Islamic Bank prioritises innovation and service excellence and signing this MoU today demonstrates once more our commitment to developing strategic alliances and supporting initiatives that reflect this focus. Tayseer is an excellent initiative, one we are pleased to sign and which is aligned with our values and business objectives.
'We are delighted to be not only associated with Tayseer but to have become the founder member from the banking community. This is a timely and innovative initiative and it is certain to have a positive impact on the real estate sector.'
Earlier, Marwan bin Ghulaita, Chief Executive Officer of the Real Estate Regulatory Agency (RERA), which has been handed a key role in rolling out Tayseer across the sector, added: 'This initiative will inspire confidence and accelerate the Dubai real estate market's continuing maturity.
'Implementation of Tayseer will effectively drive demand to where it can be met, direct finance to infrastructure development and encourage the influx of new investors we have seen who are here for the long term rather than as speculators. Tayseer is the key which will unlock the future and it is good for the banks because it will ensure their returns are guaranteed.'
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