Shareholders Approve Sale of Real Estate Finance Portfolio

Amlak, a Dubai-based finance company, is exiting the real estate sector after shareholder approval on Monday. The company plans to sell its entire real estate financing portfolio through various methods, including selling existing contracts to other institutions or through mutual agreements with customers. Amlak's stock has performed well this year, increasing nearly 90% to Dh1.64 on the Dubai Financial Market (DFM). The board of directors is authorized to approve these transactions, including offering discounts and waivers as needed.

Amlak was established as a home finance company during Dubai's mid-2000s property boom. The company has significantly reduced its accumulated losses, decreasing from Dh2.3 billion by the end of 2020 to Dh258 million by the end of 2023. Recently, Amlak reclassified foreign currency translation reserve losses, impacting accumulated losses. The company has also reached a repayment agreement with financiers, aiming to settle outstanding obligations by 2026 through asset sales.

One of the planned asset sales includes land in Ras Al Khor to Emaar, expected to generate approximately Dh3 billion. Shareholders also approved transferring legal and special reserves to partially offset accumulated losses. This move follows similar actions by DFM-listed companies Deyaar and Gulf Navigation, which have restructured to improve their financial positions.