October 4, 2005
Shamil Bank to Provide Islamic Home Financing for Abraj Al Lulu Project

Mr. Mohamed Hussain, the Chief Executive of Shamil Bank shaking hands with Mr. Mohammed Dadabhai, Chairman of Pearl Real Estate Development Company after announcing a Home Financing agreement for customers of Abraj Al Lulu.

Pearl Real Estate Development Company, a consortium of investors from Bahrain, Kingdom of Saudi Arabia and UAE, today announced that it has entered into an agreement with Bahrain-based Shamil Bank to provide Islamic home financing to buyers in the BD 95 million (US $250 million) Abraj Al Lulu development, the ground-breaking freehold luxury apartments project in Bahrain.

Commenting on the significance of the agreement, Mr. Mohammed Dadabhai, Chairman of Pearl Real Estate Development Company, said: “Abraj Al Lulu has been conceived to cater to the need of enhancing world-class residential infrastructure in Bahrain and bridge the demand-supply gap in this sector, especially for holiday homes. With the active support of the government, our aim is to provide customers with world-class facilities which can be acquired hassle-free.”

Further adding he said, “Our agreement with Shamil Bank to offer Islamic home finance is a strategic step to provide best-of-class mortgage financing option to our customers. The home finance offer also reflects our desire to increase financing options in order to facilitate buyers to acquire property in the Kingdom of Bahrain.”

Under the terms of the agreement, Bahrainis, other GCC nationals and expatriates residing in GCC, would be offered Shamil Bank’s Islamic financing product, ‘Shamil Tamweel Aqari’ which is based on the Sharia’a principle of ‘Ijara.’

Customers availing this facility under the Islamic financing mechanism, `Ijara’ will not be required to start repayments during the construction period which will work out to be the benefit of a grace period on repayment as part of the product offering. These advantages come on top of additional facilities which include sale deeds from the government with resale rights.

Elaborating on the product’s significance in the Kingdom’s real estate sector, Mr. Mohamed Hussain, the Chief Executive of Shamil Bank, said: “The development of real estate sector is always an important economic activity in the growth of a country. We at Shamil Bank believe in contributing to the development of this sector through financing options that make acquisition of properties within reach.”

“Owning a home is the realization of a lifelong dream for many. Shamil Bank, in its role as an end user financier of Abraj Lulu apartments, is helping potential buyers fulfill their aspirations of owning a home, which in turn will contribute to the development of the real estate sector in the Kingdom of Bahrain,” he added.

Commenting on the product, Mr. Tariq Bahar, Head of Retail Banking at Shamil Bank, said: “Shamil Tamweel Aqari is a Sharia’a-compliant alternative for those who want an Islamic option compared to conventional mortgage financing. It is an excellent investment product with flexibility, competitive rates and other benefits.”

In a short span since its launch, 40 per cent of the apartments in the Abraj Al Lulu project have already been sold out. Aiding the rapid sale is the fact that the apartments have been designed keeping in view affordability with prices ranging from BD 65,000 (US$ 170,000 approx) to BD 300,000 (US$ 800,000 approx). Further, construction has also commenced and is scheduled to be completed by December 2007.

Commenting on future plans of the Pearl Real Estate Development, Mr. Dadabhai said: “This pioneering venture will not be our last and we are seeking to expand our reach across the region with new projects, targeting to further contribute towards the socio-economic development of the countries in which we plan to invest.”