Tamweel takes a hit as earnings fall due to litigation provision



Tamweel's earnings fell by a third as the company was forced to set aside Dh21.5 million (US$5.8m) to cover the outcome of court battles.

The Islamic mortgage company reported a 33.6 per cent decrease in profit for the first quarter to Dh18m, compared with the corresponding period a year earlier.

A one-off charge of Dh21.5m set aside to cover the costs of ongoing litigation pushed the company's profit downwards, even though operating income improved by 6.3 per cent to Dh160.9m.

Tamweel did not disclose the nature of the litigation. At the time of the release of its half-year results for last year in July, Tamweel said it was involved in litigation regarding "certain sale and financing transactions", which it had not made provisions for. Despite the dip in profitability, the company was on the right track, said Varun Sood, Tamweel's acting chief executive.

"Despite the one-off litigation provision in this quarter, the operating profitability of the company improved and the successful funding transaction in this quarter strengthened the sustainability of the company and bolstered its business model," he said.

But the company's book of Islamic mortgages was flat at Dh9.2bn, as a price war for interest payments on mortgages ensued among the UAE's banks.

"They're facing competition from banks, which is obviously making it difficult for them to grow their book," said Shabbir Malik, a financial analyst at EFG-Hermes.

Tamweel launched a $300m sukuk during the first quarter, which was guaranteed by its majority shareholder Dubai Islamic Bank (DIB).

DIB increased its stake in Tamweel to 58.3 per cent for Dh374.7m in late 2010, enabling Tamweel to return to lending in November 2010.

Tamweel's mortgage lending had been halted after the onset of the global financial crisis blew holes in its business model, which was dependent on funding from wholesale credit markets.

An aborted merger with Amlak Finance led to both companies' shares being effectively frozen.

Tamweel returned to market trading in May last year, while shares in Amlak Finance remain suspended.

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The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

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Sunday, November 3 – UAE v Netherlands
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Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

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Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
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Sector: Entertainment 
 
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What The Saudia Ad Diriyah E-Prix

When Saturday

Where Diriyah in Saudi Arabia

What time Qualifying takes place from 11.50am UAE time through until the Super Pole session, which is due to end at 12.55pm. The race, which will last for 45 minutes, starts at 4.05pm.

Who is competing There are 22 drivers, from 11 teams, on the grid, with each vehicle run solely on electronic power.

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How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

Scoreline

Man Utd 2 Pogba 27', Martial 49'

Everton 1 Sigurdsson 77'