By Staff writer
Islamic lender returns to Dubai Financial Market; hailed by company chiefs as 'significant milestone'
Dubai-based Islamic lender Amlak on Tuesday resumed share trading after a six-year suspension in what has been described as company chiefs as a "significant milestone".
Trading in Amlak, part-owned by Dubai's biggest developer Emaar Properties, was halted as credit markets dried up and the emirate's real estate prices began a near-50 percent tumble from their peak.
The shares last traded at 1.02 dirhams ($0.28) on November 20, 2008, having fallen 79 percent in the preceding six months.
At 1pm local time, the stock was up by nearly three percent.
Arif Alharmi, managing director of Amlak Finance, said: "This is a significant milestone for Amlak Finance... We continue to strive to deliver long term value for our shareholders and we fully intend to adhere to our commitments with our financiers as part of the restructuring arrangements agreed in November 2014."
Following the resumption on Dubai Financial Market (DFM), Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, added: "I am pleased that this final step in Amlak's restructuring process has been completed, allowing the company to return to normal business operations and bring full transparency to its shareholders and the Dubai financial markets as a whole.
"The completion of this important restructuring is a clear example of the government and private sector working successfully together to achieve common goals."
Essa Kazim, chairman of Dubai Financial Market, added: "We are delighted to see the shares of Amlak Finance back on our trading screens. Undoubtedly, this step represents a positive development for investors."
Trading resumed on Amlak's share based on the last closing price before suspension and the stock was exempted from the price cap of 15 percent up and 10 percent down during the first session only.
DFM said it will study the inclusion of Amlak Finance shares into the DFM General Index and the Sub-index of the banking sector after a month of trade resumption, subject to index rules.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.