Foreign buyers from countries including Pakistan, Russia and Iran may be blacklisted from home loan schemes aimed at attracting overseas investors to the UAE, a mortgage expert has said.
State-backed Islamic home loans company Tamweel last week said it would target foreign investors after the UAE federal government moved to extend property visas for up to three years, Dubai-based Arabian Business reported Sunday.
The scheme will offer mortgages on completed properties in Dubai and Abu Dhabi, worth between AED1m and AED5m ($1.36bn), to investors in countries such as the UK, US and GCC. Tamweel said the home loans would only be available to buyers in "select countries", a move that may sideline investors from certain Asian and African states, said Dubai-based mortgage broker Sam Wani.
"Certain countries where the tax regimes are still suspect; for example those in Russia and the central Asian republics, are not up to internationals standards (and will be exempted)," Wani, general manager of Independent Finance, told Arabian Business.
"It's the same with countries like Iran, Pakistan, Afghanistan and Northern African countries. There is still a lot of money laundering happening in these areas so banks tend to shy away from clients from these countries."
The UAE government last month said it would extend three-year visas to owners of properties worth AED1m or more, replacing existing visas that require renewal every six months. The decision may spur fresh demand from overseas buyers, Wani said. The blacklist included trade, tourism and visit visas as well as visas sponsored by spouses, immigration, sources said.
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