Amlak move 'due to liquidity crunch'

Dubai: Amlak Finance PJSC, the UAE's largest mortgage lender's decision to cease new financing is due to the liquidity crunch and not because of a property market downslide, according to industry experts.

Chris Dommet, chief executive of John Charcol, mortgage broker said the company is possibly facing a lack of funding at the moment to expand their bookings further.

"The message that people might infer from this is that there is a problem in the property market, which is not the case."

"The market has gone slower but there is still no credit problem here and with most of the banks, there isn't really a liquidity issue either," Dommet said.

He added that while the financing company normally relies on secondary markets to raise funds that have dried up, "they need to put in place alternative funding mechanisms."

"Their current reliance on secondary markets is in the hands of global forces," he said, adding that the merger with Tamweel on the horizon could change the way the operations are funded.

Gulfnews: Amlak move 'due to liquidity crunch'

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