No more home loans from UAE Amlak

Amlak, UAEs largest home lender, is suspending new loan applications until further notice as it carries out a full review of its portfolio.

The implications for the economy are significant. This is a further sign that the credit crunch has hit the country. As credit dries up, analysts say home prices may soften further, leading to increased job cuts and a further slowdown in economic growth.

“We are reviewing our existing credit policy to ensure optimum servicing of existing and prospective accounts,” said Arif Alharmi, chief executive of Amlak Finance. “Our temporary measures of not sourcing new applications will bring us up to the level we have outlined in our management strategy.”

There are fears that other lenders could follow suit. “This is bad news for the market, very bad news,” said Chris Dommett, chief executive of John Charcol Dubai, a mortgage advisory firm. “It’s almost certainly down to liquidity, I think they don’t have funds to lend. It sends a very negative message to the market at a time when they need some sort of positive news.”

Amlak freezes homeloans - The National Newspaper

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