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Mon 16 Jul 2007 02:16 PM

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Dubai's Amlak sees record revenues

Investment gains and property sales drove the mortgage lender's Q2 revenues to almost double.

Amlak Finance, the largest UAE mortgage lender by market value, almost doubled revenue in a record second quarter on investment gains and sales of property, financial statements released on Monday showed.

The company made gains on investments of AED45.39 million ($12.36 million) in the three months to June 30, compared with a AED3.88 million loss a year earlier, according to the statements posted on the Dubai bourse Web site.

Amlak also earned AED29.48 million from property sales, a figure that did not appear in the year-earlier period.

Amlak reported a record second-quarter net profit on July 4 as revenues rose 92.8% to AED187.99 million. It did not say at the time exactly where the growth came from.

"These seem to be a one-off (gain) and I cannot see those gains going forward," said Hazem Abu Khalaf, an analyst at investment bank EFG-Hermes in Dubai.

Profit jumped 87% to AED81.85 million, the statements showed.

Amlak's sale of a 10% stake in Zabeel Investments was likely the main contributor to investment gains, Abu Khalaf said. Amlak did not disclose how much it made from the sale.

Amlak, which changed its management in the second quarter, said income from financing and investing assets rose 25% in the quarter to AED88.60 million.

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