Amlak begins to diversify

The newly listed Islamic finance company is delivering on its promise to diversify beyond home financing products.

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By  David Ingham Published  April 28, 2004

Amlak Finance, the recently listed mortgage finance arm of Emaar, has delivered on its promise to expand into new product areas. The Dubai-based company, which became an Islamic entity when it listed, has recently introduced a Murabaha Auto Finance product. The company is also amongst a group of financial institutions selected to help finance investment projects for Sudan Telecommunications Company (Sudatel). Its participation in a syndicated finance facility worth $40 million represents the company’s first venture outside the UAE “Following our successful Islamic conversion, listing on the Dubai Financial Market and recent release of our excellent first quarter results, we wish to emphasise Amlak’s commitment to diversifying revenue streams,” says Mohammed Ali Al Hashimi, Amlak’s CEO. Murabaha Auto Finance will be offered in Amlak’s branches at both Emaar Business Park on Shaikh Zayed road and Gulf Towers in Oud Metha road. The company is planning to partner with car dealers in the UAE and is has joined up with Aman to provide insurance packages. “The launch of this new product represents AMLAK’s commitment to further development in Islamic Finance and is part of an overall plan to continue to extend the company’s reach beyond home financing and into a number of other areas,” says Al Hashimi. In Sudan, Amlak is contributing $3 million alongside five other financial institutions. The two year facility will be used to help finance Sudatel’s investments in new digital and satellite networks, particularly in the troubled south. In 2003, Amlak posted net profit of Dhs14 million, well up on Dhs3.5 million the year before. Its recent IPO of 55% of its equity was 33 times oversubscribed.

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