Amlak plans to raise Dh6b through sukuk and loans

Dubai: Islamic home finance provider Amlak plans to raise Dh6 billion in sukuk and loans this year to finance growth, the company's chief executive officer said.

However, Amlak has put its plans to raise money through securitisation on hold as it is studying market conditions, Arif Al Harmi said.

"We are looking at raising Dh6 billion through various schemes this year. We will be tapping different markets and investors," he told Gulf News. "All the funding structures will be Sharia-compliant, mainly sukuk. We are looking at medium to long-term funding."

The company is seeking a banking licence in order to access customer deposits.

Al Harmi said the application is still with the UAE Central Bank and has not been rejected.

"We have not heard anything officially from the Central Bank," he said, adding that the company's expansion plans are not tied to that decision.

"We are moving ahead with our plans, whether we get the banking licence or not. Our plans will not be affected by with this. We have our funding plans."

The company plans to launch operations in new markets in the region, including Bahrain, Jordan and Qatar. It is in talks with a private group Syria to start a housing mortgage finance company.

The company last year launched its activities in Egypt and Saudi Arabia.

Amlak also plans to sell a 10-20 per cent stake in its Egypt subsidiary to the World Bank's private sector investment arm International Finance Corporation (IFC).

The IFC and Amlak have an understanding to joint work projects.

"They will also be partnering with us in other markets," Al Harmi said.