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A total of 40 construction projects have been shortlisted for the first phase
of the Dubai Land Department's initiative to offer developers and investors a "
government guarantee," a local business journal reported Thursday.
Officials revealed details of Tayseer, an initiative which effectively
guarantees finance and completion of the selected projects, Arabian Business
said in a report on its website.
The first phase of the initiative is aimed at boosting liquidity in the
market and bolstering confidence in the sector, Sultan bin Butti bin Mejren,
director general of the Dubai Land Department, was quoted as saying.
Tayseer was a four-way partnership between the Dubai government, leading
banks in the United Arab Emirates (UAE), developers and investors, he said.
"The bigger picture is that through this and other related initiatives the
Department is introducing a different, comprehensive and coherent level of
strategic management to Dubai' s property sector," bin Mejren added.
"This will offer clear transparency and in doing so inspire confidence among
developers, end users and all those with an interest in Dubai's property
sector," he said.
The official said that once a project is examined and approved for Tayseer,
it will receive the Tayseer trademark, a government guarantee that it will be
completed by a specific date.
"This is what the banks have been looking for in order to participate and we
clear commitments from a group of banks to participate and offer both
construction and end user funding," he said.
Bin Mejren noted that the focus of the first phase of the initiative are
those projects which are under construction or almost finished.
According to Marwan bin Ghulaita, CEO of the Real Estate Regulatory Agency,
the guidelines for inclusion in Tayseer were " extremely stringent."
"There has to be a clear statement of the strength and ability of the
contractors assigned to the project and the channels and flow of cash to them
from the developer must be shown. Enforcement of the criteria offers the banks
the comfort levels they need to participate fully," he said.
About 240 projects have been cancelled or are indefinitely on hold in Dubai
as a result of the economic slowdown, according to Proleads, an industry
auditing company based in the sheikhdom. |
