Major UAE financers in merger talks

News on the Middle East

The two leading property financiers in the UAE - Amlak Finance and Tamweel have begun merger talks, in light of greater pressure from the liquidity crunch facing the region.

Any amalgamation between the two companies would certainly strengthen their financial position, size and scale.

"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.

Nasser Bin Hassan Al-Shaikh of Amlak Finance said: "The resultant entity would have a combined balance sheet in excess of 27bn dirhams (£4.2bn) and serve as a financial powerhouse with the increased critical mass required to lead the region's real estate finance markets to the next stage in their ongoing organic growth."

Banks in the UAE are growing increasingly more exposed to the major financial crises in the USA, and as a consequence there are rumoured to be merger talks between a few other banks in the UAE as well.

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