Amlak renews request for bank licence

Dubai-based Islamic mortgage company in fresh attempt to become a bank.
Amlak renews request for bank licence
By James Cordahi
Thu 15 May 2008 12:15 PM

Dubai-based Islamic mortgage company Amlak Finance said it renewed its application to become a bank, for which it first applied more than two years ago.

In a statement on the Dubai bourse website on Thursday, the Emaar Properties affiliate did not give more details. Becoming a bank would allow Amlak to take deposits that it could then lend on as mortgages.

Shares of Amlak were up 1.3% at 07.55 GMT.

Goldman Sachs in March raised its price targets on Amlak and rival Tamweel, saying the stocks were oversold.

The brokerage, which raised its price target on Amlak shares to 5.10 dirhams from 4.80 dirhams, said the company has started improving performance and returns by refocusing on the core business of Islamic mortgage finance.

It retained a "neutral" rating on the stock, which last traded at 4.83 dirhams.(Reuters)

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