Issue No 283 - 15 Sep 2008
Tamweel reassures investors after new probe

Dubai's Tamweel said on Wednesday the detention of its deputy chief executive for questioning by Dubai police would not affect its operations and financial performance.

The detention of Abdulla Nasser Abdulla follows an investigation into the former chief executive and head of investments at the Dubai mortgage lender.

"The company's activities continue to progress as planned, and in line with market performance," Tamweel in a statement on the bourse website.

"Tamweel wishes to reassure its stakeholders that this investigation will have no impact on the company's previously disclosed financial results, including most recently for the first half of the year."

Tamweel shares closed 4.04 percent lower at 4.99 dirhams on Wednesday, continuing to fall after the company announced Abdulla's detention on Tuesday.

The detention is the latest in a series of highly publicized probes into officials at major Dubai companies, mostly linked to the real estate sector, as the emirate's government attempts to crack down on corruption.

Prosecutors in Dubai said last month that fighting corruption was a top priority for the Gulf business hub and pledged a zero-tolerance policy on violations.

Property shares in Dubai have fallen sharply recently as the government's efforts to clean up the real estate market have dented investor confidence.

Source: Trade Arabia News

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