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Dubai registers 114 projects under “guaranteed funding” plan
By Parag Deulgaonkar
First deal under the Tayseer initiative expected to be finalised soon, says senior Land Dept official.
The number of projects registered under the Dubai Land Department’s (DLD) Tayseer programme has reached 114 and the first funding agreement under the scheme is expected to be finalised soon, a senior official told Emirates 24|7.
“The second phase has already started with the number of projects approved under Tayseer programme now standing at 114. Discussions are currently underway between one bank and a developer for funding under the scheme,” said Majida Ali Rashed, Senior Counsel Strategy, DLD.
She added: “Tayseer is a sophisticated formula for funding which links banks on one hand and real estate projects with high guarantees and feasibility on the other. The programme is designed to move the real estate sector towards a new development stage through support and offering financial facilities on the basis of specific criteria.”
Until now, seven banks have signed with the DLD for financing under the Tayseer initiative. The banks are: Emirates Islamic Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank (ADCB), Noor Islamic Bank, Mashreq, Dubai Bank and Ajman Bank.
Tayseer was launched in June last year with 40 projects in Business Bay, Dubai Marina and Jumeirah Lake Towers being approved in the first phase. The move was aimed to significantly boost liquidity in the market and bolster confidence in Dubai’s real estate sector.
For projects to be selected and accredited under the programme, it should be registered with the department; should not be less than 60 per cent complete; must have an escrow account; be moving forward as per the construction schedule; and have a competent contractor who can deliver on time.
Asked how often does the department review schedules of the approved projects, Majida said: “After the necessary funding is obtained, we will be able to adopt an agenda to commence construction and conduct technical audits every three months.”
Property buyers can also benefit from Tayseer, as the programme is now enrolling banks that offer end-user financing for the approved projects.
Majida adds: “Tayseer was introduced to facilitate promotion of real estate investment and ease lending to the sector. Since the start, banks have been given the right to choose between project financing and financing individuals.