By Staff writer
Senior exec at mortgage lender also says in talks with Dubai Land Dep't to revive stalled construction projects in emirate
Dubai-based Islamic mortgage lender Amlak Finance has said it is in talks with Emaar Properties to launch a partnership.
Amlak's shares soared 15 percent, the maximum allowed in a day on the Dubai Financial Market, after the company said it plans to work with construction giant Emaar to develop land in “distinctive locations”.
Amlak chief commercial officer Adnan Al Awadhi told Al Khaleej newspaper that it is also in talks with the emirate’s Land Department to revive stalled projects.
The mortgage provider, which restructured $2.7 billion of liabilities, was halted from trading in November 2008 before being rescued from insolvency by the UAE government. The stock resumed trading on June 2.
Last month, Amlak recorded a 77 percent plunge in first-quarter profit because of amortisation charges.
Amlak reported that net profit fell to AED3.7 million ($1.01 million) from AED16 million in the same period last year.
The company "recorded an amortisation or unwinding of an initial fair value gain recognised on investment deposits at the time of restructuring" for an amount of AED28 million in the first quarter, it said.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.