Amlak Finance Divests Stake in Saudi Entity

Amlak Finance P.J.S.C, a prominent financial institution based in the United Arab Emirates, has recently announced a significant divestment from its non-core business activities. The company has disposed of 18,702,000 shares in Amlak International Finance Company, a joint-stock company incorporated in the Kingdom of Saudi Arabia. This transaction, valued at SAR 201.677 million (approximately AED 197.28 million), marks a strategic move by Amlak Finance to reallocate capital in line with its long-term strategy.

The initial cost of acquiring these shares was AED 163.07 million, representing 10.87% of Amlak Finance's share capital. The decision to sell was approved by the shareholders during the General Assembly held on April 21, 2025, emphasizing the company's commitment to optimizing its investment portfolio and focusing on core business areas. The sale does not involve any related parties, ensuring transparency and compliance with regulatory standards.

The purchasers of the shares include a diverse group of investors, such as Murbiha Company, Abdulmajed Abdulaziz Almeshaal, and Al-Ati Holding Co, among others. This broad spectrum of buyers signifies a strong interest in the Saudi financial sector and reflects confidence in the future prospects of Amlak International Finance Company.

While the transaction is not expected to adversely impact Amlak Finance's ongoing operations or shareholder rights, it does present an opportunity for the company to strengthen its financial position by freeing up capital for potentially lucrative ventures within the UAE and beyond. The strategic divestment aligns with Amlak Finance's vision of focusing on its core competencies, such as Ijara, Murabaha, Mudaraba, and Musharaka, which are conducted in accordance with Islamic Sharia’a principles.

For investors, the divestment could be seen as a positive move, as it indicates Amlak Finance's proactive approach to managing its portfolio and optimizing returns. However, given the neutral outlook on the company's future, it may be prudent for investors to hold their positions and closely monitor Amlak Finance's next strategic moves. The company's ability to successfully reinvest the proceeds from this transaction into high-growth areas will be crucial in determining its long-term performance.