Amlak profit skyrockets

Dubai Islamic mortgage company Amlak Finance posted a 74 percent surge in second-quarter net profit as half-year income jumped on a residential real estate boom.

Amlak, which offers home loans that comply with Islam's ban on the payment or receipt of interest, made 142.26 million dirhams ($38.71 million) in the three months to June 30, Reuters calculated based on half-year results released by the firm.

Revenues jumped 114 percent in the six-month period to 620 million dirhams - 52 percent of which came from property financing, Amlak said in a statement, without giving details.

Profit at Amlak more than doubled last year to 301 million dihrams, helped by the sale of investments.

The firm said it had a total portfolio of real estate investments worth 6 billion dirhams at the end of June.

Amlak made 269 million dirhams in the six months ended June 30, compared with 106 million dirhams in the year-earlier period.

Its second-quarter profit after depositors' share was 81.85 million dirhams in the second quarter of 2007 and 126.74 million dirhams in the first quarter of this year.

Amlak Chairman Nasser Al-Shaikh said in February he expected the mortgage firm to post profit growth of 70 percent this year spurred by higher UAE residential demand and investments sales.

The company, which is part-owned by Dubai-based Emaar Properties, planned to expand in Jordan, Qatar and Bahrain before July, Al-Shaikh said in February.

The firm said it had concluded an initial public offering of Amlak Finance Jordan, while raising the capital of its Egyptian operation to 125 million Egyptian pounds ($23.44 million) from 50 million pounds.

Shares of Amlak fell 1.74 percent to 4.52 dirhams on Sunday. The results were released after the close of trading. Shuaa Capital last week raised its fair value target on Amlak to 4.86 dirhams.

Amlak in new banking licence request

By Mike Gallagher
New Islamic bank in the UAE would bring number of banks in country to 52 and would be fourth new Islamic bank in the past 12 months

Dubai-based Islamic mortgage company Amlak Finance said it renewed its application to become a bank, for which it first applied more than two years ago.

In a statement on the Dubai bourse website on Thursday, the Emaar Properties affiliate did not give more details. Becoming a bank would allow Amlak to take deposits that it could then lend on as mortgages.

The Central Bank of the UAE is thought to be reluctant to issue any more banking licences as there is currently 51 banks, up from 48 a year ago. However, the fact that the three newest banks have all been Islamic could be something that is giving Amak the courage to keep applying as the UAE hopes to become the Islamic finance hub of the Middle East, ahead of Bahrain which also saw a number of Islamic bank launches in 2007. Among the new entrants in the UAE were Al Hilal, Noor Islamic Bank and Crescent Bank.

Shares of Amlak were up 0.63 per cent at AED 4.80 on Thursday

Amlak signs $381m deal

MANAMA: Amlak Finance yesterday announced the signing of an 1.4 billion dirhams ($381.2 million) syndication facility with Emirates Islamic Bank (EIB).

The Wakala facility is primarily intended to support Amlak's real estate investments. .

"Finalising a financial transaction of this magnitude with a respected industry powerhouse such as EIB is an important milestone in our continuing journey to drive growth through innovative and flexible funding structures and instruments," Amlak Finance chief executive officer Arif Alharmi.

"This transaction forms part of our overall funding requirements to support our growth plans and international expansion. The syndication facility, which was substantially oversubscribed, exhibit the confidence in Amlak's growth plans and strategy," said Mr Alharmi.

"Emirates Islamic Bank has always been in the forefront of the economic growth in the UAE. Our portfolio of strategic alliances includes many of the most prominent organizations in the UAE, and Amlak is another significant addition to it," EIB chief executive officer Ebrahim Fayez Al Shamshi.

EIB's partners in this ambitious venture are Al Watani Al Islami, Dubai Islamic Bank, Habib Bank AG Zurich, Khaleeji Commercial Bank, Abu Dhabi Islamic Bank, National Bank of Abu Dhabi, National Bank of Umm Al Qaiwain, Sharjah Islamic Bank and Union National Bank.