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UAE Financial Sector Can Be Revived With Dh40 Billion

UAE : 11 August 2010

Chairman of Union Properties says 50 per cent of this massive amount should be allocated to direct lending

The finance sector in the UAE needs an investment of Dh40 billion to be revived and 50 per cent of that needs to be distributed to direct lending, as stated by the chairman of Union Properties, Khaled bin Kalban.

The statement by bin Kalban was made during an interview with Altaboo, a magazine of the Land Department.  Bin Kalban noted that loans of all sorts must be included, not just real estate financing, and his own firm is experiencing some trouble obtaining financing for upcoming projects.

Bin Kalban has faith that his business will move past the difficulties but gave no timeline as to when that would happen.

Their company has reached a decisive stage, but the difficulties won’t deter them from success, according to bin Kalban.  They are working on plans to restructure the business and moving toward more organized asset management.  At the same time, the firm is also actively seeking debt repayment solutions to settle up with the contractors currently working on Dh18 billion in projects.

He also noted that new bids from investors have been put forward in regards to the Ritz Carlton Hotel, one of those being from an investor in the Far East.

Bin Kalban stated that the projected rate of return on that project is approximately 23 per cent.  Since most investors seek out assets with a return of at least five to seven per cent, the firm has bumped the asking price from Dh1 billion to Dh1.5 billion.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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