Finance key to spur home ownership in Dubai & UAE

DUBAI — Long term real estate finance that allow people to own home will go a long way in building sustainable domestic demand and spur international and domestic investment said Mohammed Ali Al Hashimi, CEO of AMLAK Finance.

Speaking at an open discussion at the International Islamic Finance Forum (IIFF) Al Hashimi said: “With access to long-term home finance and mortgages comes the dignity and pride that is consistent with home ownership. But it goes beyond pride. A vibrant home finance and mortgage market not only strengthens the middle class, but also has enormous ripple effects on economies, triggering domestic demand for construction material such as cement and steel, home consumer items and a whole array of home related services.”

A vibrant mortgage market will also lift up the region's banking systems and strengthen capital markets. This is because banking systems that rest on diversified base of loans to individual home owners tend to be more stable than systems characterised by a limited number of loans to large borrowers, a trait that typically characterises many Arab economies, Al Hashimi explained. “This region needs strong capital markets to channel the region's liquidity. A thriving, well-regulated mortgage market will create new opportunities for investment.''