Islamic mortgage lender is boosted by sale of investment properties
Dubai Islamic mortgage lender
Amlak returned to profit in the third-quarter, helped
by the sale of investment properties and lower impairments for
financing and investment assets.
Amlak made a net profit of 5.99 million dirhams ($1.63
million) in the third quarter, it said in a statement, compared
to a loss of 45 million dirhams in the same period in 2009.
The company made a net profit 2.26 million dirhams in the
first nine months of the year compared with a loss of 178.56
million dirhams in the same period last year.
Income from the sale of investment properties was 108,000
dirhams for the quarter against a loss of 23 million dirhams in
the same period last year, it said in the statement.
The mortgage lender reported an impairment of 17.7 million
dirhams for financing and investing assets in the three-month
period, down from 44 million dirhams last year.
In September, Dubai Islamic Bank raised its stake
in rival Islamic mortgage firm Tamweel to 57.33
percent, in a move that will help revive lending in Dubai's
The United Arab Emirates government said in November 2008 it
intended to merge both Amlak and Tamweel. Shares in the two have
not traded since.
The long-planned merger has likely been scrapped as a result
of the Tamweel deal, Tamweel's chairman told Reuters earlier in
Amlak will need new options to resume lending and to trade
as a listed company. A bank takeover is the most likely scenario
although any bank that would look to take on Amlak would have to
be cautious about the quality of Amlak's real estate
investments, analysts said. (Reuters)For all the latest UAE 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.