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Tue 26 Oct 2010 12:37 PM

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Dubai's Amlak returns to profit in Q3

Islamic mortgage lender is boosted by sale of investment properties

Dubai's Amlak returns to profit in Q3
Dubai Islamic mortgage lender Amlak returned to profit in the third-quarter. (AFP/Getty Images)

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

property market.

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

October.

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)

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