UAE-based Islamic mortgage lender Tamweel has announced a net profit of AED102m ($27.7m) for the year ending 2011, up 290 per cent from the AED26m made in the year before.

Net profit for the fourth quarter increased 225 per cent to AED26m up from AED8m compared with the same period in 2010. Total assets held by the company fell two per cent from AED10.2bn in 2010 to AED10bn last year.

Abdulla Ali al-Hamli, Tamweel’s chairman has attributed the rise in profit to the company’s resumption of share trading on the Dubai Financial Market (DFM) in May 2011 after a two-year suspension.

Dubai Islamic Bank’s (DIB) decision to increase its stake in Tamweel to 58.25 per cent in September 2010 has also helped the mortgage lender improve its performance.

On 18 January, Tamweel issued a $300m five-year sukuk (Islamic bond), which was guaranteed by DIB.

The company’s shares have risen seven per cent since the beginning of the year.