Dubai: Tamweel, the mortgage provider that Dubai Islamic Bank plans to take over, said 2012 profit dropped 29 per cent as it made provisions for litigations.Net income for the year fell to Dh72.5 million ($20 million), or seven fils a share, compared with Dh102 million, or 10 fils a share, in 2011, the company said in a statement to the Dubai bourse Tuesday.
Total operating profit climbed to Dh603.3 million from Dh601 million in 2011, it said.Profit declined because of "exceptional provisions relating to certain ongoing litigations for which the company made full provision while continuing to fight its rights," Tamweel said, without elaborating.
The company suffered after the 2008 property market crash when house prices in Dubai plunged more than 65 per cent. Real estate prices started to rally in some areas in 2012 as tourism and retail industries rebounded. The average sale price of a mid-range villa soared 31 per cent in the year to December, data from property broker Cluttons show.
Average home prices in the United Arab Emirates should increase between 10 per cent and 15 per cent over an 18-month period, Tamweel Acting CEO Varun Sood said.