UAE. Dubai-based Islamic mortgage lender Amlak Finance said it expects
profit this year to rise 70%, the same as last year's target, spurred
by higher United Arab Emirates residential demand and investments sales.
Profit at Amlak, the UAE's first mortgage company and the third-most
traded stock on the Dubai exchange, more than doubled last year to AED
301 million (US$81.97 million), helped by the sale of investments in
listed companies, Chairman Nasser al-Shaikh told the Reuters Islamic
Finance Summit in Dubai on Tuesday.
"We're looking at 70% profit growth again in 2008....we will be more aggressive in our core business," Shaikh said.
Amlak, which generated 15% of its profit last year from the sale of
investments, still has a stake in Dubai Aerospace Enterprise, which it
could sell, Shaikh said.
Operations in Egypt and Saudi Arabia, both of which started last
year, will contribute to revenue this year, he said, as Amlak expands
abroad to reduce its reliance on its home market where competition is
growing.
"We're looking at foreign operations contributing around 50% of our financing book and revenue within three years," Shaikh said.
The company, which is part owned by Dubai-based Emaar Properties,
plans to expand into Jordan, Qatar and Bahrain before July, Shaikh said.
In Jordan, it plans to sell about 30% of a US$70 million company in
an initial public offering in the second quarter, later than expected
following a request from the Jordanian financial authorities, Shaikh
said.
Partners include Jordan's Social Security Investment Unit and Jordan Dubai Capital, Shaikh said.
In Qatar, Amlak is planning a venture with the local Barwa Real Estate and in Bahrain will own all its operations, Shaikh said.
The firm also plans to raise about AED 6 billion this year,
including through the sale of covered bonds - debt securities backed by
cashflow from mortgages - or Islamic bonds that are convertible to
shares, Shaikh said. Amlak could also set up a real estate funds, he
said.
However, the firm will continue to delay the sale of US$260 million
of asset-backed securities until at least the end of the year, Shaikh
said. The sale was originally scheduled for 2007.
"The timing now is not right," he said. "We are hearing the window may open in fourth quarter this year or in 2009."
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