Dubai: Dubai-based finance company Amlak is seeking shareholder approval to fully exit its real estate finance portfolio, a move that could mark a pivotal step in its turnaround strategy. If approved, the company would be allowed to sell its current financial contracts to other institutions or exit them through mutual agreements with customers.
A shareholders’ meeting has been scheduled for June 30 to vote on the proposal.
Amlak’s stock has surged by over 90% in the past month, currently trading at Dh1.62, reflecting growing investor confidence amid strategic restructuring efforts.
In its statement to the Dubai Financial Market (DFM), Amlak confirmed that shareholders will also be asked to authorize the Board of Directors—or their delegates—to finalize such transactions, including offering discounts or waivers as necessary.
Turning Point in Amlak’s Restructuring
The proposed exit from the real estate finance business represents a significant milestone in Amlak’s shift from its legacy business model. Established as a standalone mortgage lender, Amlak faced mounting losses following the 2008 financial crisis and has since sought to reposition itself as a broader financial services provider.
Shareholders will also vote on transferring Dh307.3 million from the legal reserve and Dh99.2 million from the special reserve to offset the company’s accumulated losses—another step aimed at cleaning up its balance sheet.
Dh2.9 Billion Deal with Emaar in Pipeline
Further strengthening its financial position, Amlak may soon benefit from a Dh2.9 billion land sale agreement with Emaar for a parcel in Ras Al Khor, pending regulatory approvals.
The upcoming June 30 meeting is set to be a defining moment for Amlak as it continues to distance itself from legacy losses and pursue sustainable growth under a redefined business model.
