Amlak Finance, the largest Public listed Islamic finance company offering Sharia’a compliant solutions and a pioneer of home finance in the UAE, today announce its preliminary results for the first quarter, which ended 31st March.
Financial Highlights:
• Profit from core business in the retail financing sector increased by 61% (from AED 42m to AED 68m)
• Core business assets in the retail financing sector increased 45%, which should create a healthy pipeline for FY07.
• Overall net profit was announced at AED24m
Expectations for 2007:
• For the financial year 2007, the Amlak board has made a firm statement of commitment to focus on and develop core business. Development of the corporate and investment sectors of the business will take second place for the coming quarters, to allow the primary focus of the company to be on growing its market leadership position.
• The continuing delay of many major property developments has had an impact on disbursements and a knock on effect on profit. Amlak expect to see the gradual roll out of many of the larger developments during the second and third quarters of this financial year.
• Expansion remains a key area of growth for Amlak this year, with the launch of overseas subsidiaries and co-ventures in Egypt and Saudi Arabia. The international team will be working to lay strong foundations for growth around the region.
Commenting on the results Nasser Al Shaikh, Chairman of Amlak Finance said:
“Amlak Finance has made a strong commitment to focus on our core business, the business of Islamic home finance. This strategic shift will enable the company to ensure that the ongoing growth in our retail sector continues by focusing resource and encouraging innovation within the team to drive performance in the coming quarters.
Product innovation has always been a key differentiator for Amlak, and we expect to see a number of new products come to market, shaped by Amlak’s ongoing dialogue with customers and detailed market research to understand the trends and requirements of the rapidly changing real estate market. As the UAE real estate market matures, both regional and international investors expect international standards and choice from their finance providers.”
“The development of the UAE real estate sector continues to play a leading role in the vibrant economy of the country, as highlighted by our UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum,” concluded Al Shaikh. “Our expanded operations in Abu Dhabi and alignment with the forecasted economic growth for the Emirates will provide a strong UAE base to enable the company to export quality home finance products to our neighbours around the region.”
