Real Estate Finance Portfolio Sale Approved, Stock Price Surges

Amlak, the Dubai-based finance company, is holding a shareholder meeting on June 30th to decide on a potential exit from its real estate finance portfolio. Shareholders will vote on whether to authorize the sale of financial contracts to other institutions or reach mutual agreements with customers to exit these contracts. The stock has seen a significant increase, gaining over 90% in the last month and currently trading at Dh1.62.

Shareholders will also consider authorizing the Amlak Board of Directors to approve transactions, including offering discounts and waivers. This move is a significant step in the company's turnaround plan. Additionally, shareholders will vote on transferring legal and special reserves, totaling Dh406.5 million, to offset accumulated losses.

Amlak may receive another financial boost if its deal with Emaar to sell land in Ras Al Khor for Dh2.9 billion clears regulatory hurdles. Launched as a home finance company, Amlak faced challenges after the 2008 financial crisis, leading to losses and a shift towards becoming a full-play finance company. The upcoming meeting represents a crucial phase in Amlak's efforts to move forward from past difficulties.