Emaar Properties, the developer of the world’s tallest tower in Dubai, said it received AED214.4m ($58.4m) from Amlak Finance as part of loan repayments in 2010.
Emaar’s loans to Amlak, the Islamic mortgage company being reorganized by the UAE government, amounted to $46.8m at the end of last year, the company said in its reviewed earnings statement on the Dubai bourse today.
The amount owed by Amlak is “unsecured” and earns an average return ranging from 4 percent to 4.5 percent a year, it said.
Emaar’s management believes the loan due from Amlak is “fully recoverable.’’ Emaar holds a 45 percent stake in Amlak, according to Bloomberg data.
The company said it booked an impairment provision of $48m toward loan losses from Dubai Banking Group, according to the statement.For all the latest banking and finance 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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.