Amlak Finance and Tamweel in merger talks
18 October 2008
Amlak Finance and Tamweel, the UAE’s two largest home finance providers have begun merger talks. The move was seen by analysts as the first signs of fallout from a global wave of consolidation that began on Wall Street.
If the deal goes through, it would create the largest property finance company in the Middle East with a combined balance sheet of more than Dh27 billion (GBP 4.2bn).
With a lack of credit in the international markets and construction bottlenecks caused by soaring material costs and labour shortages, companies are looking for ways to remain profitable and gain economies of scale by pooling resources. Such moves could reassure property buyers that there would still be money available for home finance, even though there will be fewer lenders.
"It will enhance value proposition for customers through a larger and more efficient company with broader product capabilities, meaningful expected operational and financial synergies resulting from the increased size, scale, funding and product capabilities," a joint statement said.