Amlak, the largest Dubai listed Islamic finance company offering Shariah compliant solutions to both retail and corporate customers and a pioneer of home finance in the UAE, today announces its preliminary results for the year ended 31st December 2006.
Financial Highlights:
• Total Revenue for the year increased by 54% as compared to previous year (From 251.02m to AED 385.9m)
• Revenue from core business increased by 97% as compared to previous year (From AED 137m to AED 270m)
• Net Profit increased by 23% compared to previous year (From AED 106 to AED 130m)
Operational Highlights:
• Launch of overseas offices in Egypt and Saudi Arabia. Expansion of UAE operations in to Abu Dhabi
• Commitment ratios increased by 130%
o due in part to Amlak’s sustained focus on core strengths and its ability to leverage its market leadership position and unrivalled expertise to deliver innovative new products
• Launch of 3 new home financing products
o Bayti – launched in August 2006
o Buy-to-Rent – launched in November 2006
o Bonus – Refinancing – launched in May 2006
Expectations for 2007:
• Many major property developments scheduled to be delivered in 2006 were delayed, which had an impact on disbursements. The release of these projects will have a positive effect on 2007 results.
• Amlak’s application for a banking license should be reviewed by the Central Bank of the UAE during 2007, and the market is hopeful of a positive response.
• 2007 will see the company continue to develop innovative products for UAE homeowners, as well as boost its international expansion plan which is scheduled to continue during the year.
Commenting on the results and the above industry growth Mohammed Ali al Hashimi, Managing Director & CEO of Amlak Finance said: “2006 saw the introduction of three new home financing products to the market, more than any other competitor company launched in the same time period As a company we are committed to using our first-to-market heritage to quickly roll out products such as Bayti, Buy-to-Let and Bonus which directly answers the needs of our customers.
“Consolidating our leadership position in the UAE has created a strong platform for international expansion, and we recently announced that Amlak is now the first UAE home finance provider to launch offices overseas, starting with launches in Egypt and Saudi Arabia. Our core business accounted for approximately 70% of total income during FY06, and has positioned Amlak well in the market prior to the expected release of a large number of properties during 2007.”
During a year of relative volatility on the regional stock markets, Amlak maintained a strong position in terms of liquidity of stock, with DFM positioning the company as 2nd most traded in terms of activity. Investor confidence in the company remains solid, and with an asset portfolio of over AED 15bn in market value the disbursement rate in 2007 should remain healthy.
“The UAE economy has seen stellar growth, due in a large part to the leadership of our UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. His vision for the country’s development, and commitment to programs such as the Emiratization initiative has created a vibrant, dynamic and sustainable economic growth which continues unabated,” commented al Hashimi.
“Through our ongoing work with the UAE community and through our commitment to maintain a leadership ranking in the finance sector in terms of emiratization, with UAE nationals making up 24% of our headcount against an industry average of 8%, we continue to strive for excellence in our industry, in the UAE and in the region.”
Amlak continues to enjoy and expand its positive relationships with industry players, counting over 60 of the UAE’s master and private developers, prime real estate companies and agencies amongst its business partners.
