AMLAK posts record 314% rise in profit

Strong performance underpins demand for Islamic, sharia-compliant finance products.

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By  Mark Johnson Published  January 26, 2005

AMLAK Finance, the Islamic finance and home finance company has announced record annual profits of US$15.7 (AED58 million - before depositor’s share), for the year ended December 31, 2004. The 314% rise represents a significant increase over the previous year’s figure of US$3.8 million (AED14 million). After a distribution of US$2.8 million (AED10.28 million) to depositors, the profit attributable to the shareholders was US$12.9 million (AED 47.75 million). The company also witnessed a record 199% increase in revenues to reach US$22.8 million (AED 84.36 million) for 2004 from US$7.6 million (AED 28.19 million) in 2003. Remarking on AMLAK’s performance in its first year as a public company, Mohammed Ali Al Hashimi, ceo, AMLAK, said: “AMLAK has cemented its reputation as a leading Islamic finance institution and continues to set benchmarks in the industry. This has been reflected in its financial performance in 2004, when the company exceeded all expectations, beginning with its hugely successful IPO in January that was more than 33 times oversubscribed. “We would like to thank His Highness General Sheikh Mohammed Bin Rashid Al Maktoum, Dubai Crown Prince & UAE Minister of Defence for his leadership and continuous support for AMLAK and its future plans”, Al Hashimi added. “AMLAK’s profit in 2004 continues to record excellent growth – a reflection of its ability to maintain its status as a leading provider of home finance in the market, as well as to evolve and grow in the field of Islamic finance and capture market opportunities when they arise both locally and internationally,” Al Hashimi continued. “In order to maintain a solid foundation to sustain AMLAK’s momentum for growth and expansion, and following the company’s board of directors meeting held earlier this month, the board of directors will recommend to the shareholders at the company’s annual general meeting (AGM), scheduled to be held in March 2005, that no dividend be declared for the year ending 31 December 2004,” Al Hashimi added. In 2004, the company completed its conversion to an Islamic finance institution to cater to the rising demand for Islamic finance and to directly respond to the region’s need for sound Sharia compliant investments. Other highlights in 2004 include the formation of a joint venture home finance company in Turkey with Kuwait Finance House, and lead manager roles in a number of syndication finance transactions for some of the region’s leading corporations. On the consumer front, AMLAK launched a number of innovative products in response to customer needs.

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