Tamweel application for Islamic banking license

The UAE Central Bank's decision to reject Amlak Finance's application for an Islamic banking license comes as a major blow to the entity.This does not bode well for its competitor Tamweel, which has also sought a similar license.The two entities account for 55 per cent of the UAE mortgage market, but that may soon change, especially if Tamweel's application is also turned down. The rejections, however, will present new opportunities for banks in the UAE in the mortgage sector - an area that remains a fertile ground for growth.

The Chief Executive of Amlak Finance Sunday called a decision by the U.A.E. central bank to reject its Islamic banking license application "unjust and extremely disappointing," but didn't reveal what it plans to do instead.