Dubai Islamic Bank raised its stake in Islamic mortgage firm Tamweel to 57.33 percent on Sunday, in a move that will help revive lending in Dubai's battered property market. DIB, the emirate's third-largest bank by market value, had said in June it may increase its one-fifth stake in Tamweel.
"The deal effectively renders Tamweel a subsidiary of Dubai Islamic Bank which is now its biggest shareholder at 57.33 percent," the government of Dubai media office said in a statement.
"This strategic move is the culmination of intensive efforts over the past few months to resolve the stalemate at Tamweel that will allow the company to resume its core activity of providing mortgages and real estate financing," it added. The statement did not provide a value for the deal. "This probably tells you that DIB will have to recapitalise the company (Tamweel) and inject more cash.