Amlak Finance Shifts Strategy Amidst Portfolio Exit
Amlak Finance announces strategic shifts to address accumulated losses and exit real estate finance portfolio.
Summary
Amlak Finance PJSC plans to offset accumulated losses and exit its real estate finance portfolio, signaling a strategic shift to optimize its operations.
In a significant strategic move, Amlak Finance P.J.S.C, a leading finance company in the United Arab Emirates, has announced a series of resolutions aimed at repositioning its financial standing and operational focus. During a recent General Assembly meeting held at Kempinski the Boulevard, the company resolved to transfer substantial reserves to offset accumulated losses and initiate an exit from its real estate finance portfolio.
The meeting, chaired by Mr. Jamal Hamed Almarri, saw a quorum of 61.63% of the total capital, reflecting substantial shareholder engagement in these pivotal decisions. Amlak Finance plans to transfer AED 307,392,000 from its legal reserve and AED 99,265,000 from its special reserve, as of December 31, 2024, to partially offset its accumulated losses. This move is subject to the approval of the pertinent authorities, underscoring the company's commitment to enhancing its financial health.
Moreover, Amlak Finance has resolved to strategically exit its real estate finance portfolio. This will involve the sale of financing contracts to other financial institutions and exiting existing contracts through mutual agreements with customers. The Board of Directors, or any authorized person, has been empowered to approve these transactions, including offering discounts and waivers as necessary to facilitate the process.
This strategic shift marks a new chapter for Amlak Finance as it seeks to streamline its operations and focus on core activities. The decision to exit the real estate finance sector aligns with broader market trends and the company's long-term vision to optimize its business model and enhance shareholder value.
Investors and stakeholders should consider this strategic realignment as a positive step towards stabilizing the company's financial position. With the UAE's dynamic economic landscape and Amlak Finance's proactive approach, the future appears promising. However, potential investors should remain cautious and consider the inherent risks associated with such transitions.
Given the current strategic moves and the company's focus on financial optimization, a 'hold' suggestion is prudent for existing investors. This allows for observation of how these changes unfold and their impact on the company's performance before making further investment decisions.
Source
Summary
On June 30, 2025, Amlak Finance PJSC held a General Assembly meeting chaired by Mr. Jamal Hamed Almarri at Kempinski the Boulevard, with a quorum of 61.63% of the total attendance. The meeting resolved two key decisions: First, to approve the transfer of AED 307,392,000 from the legal reserve and AED 99,265,000 from the special reserve as of December 31, 2024, to partially offset accumulated losses, pending approval from relevant authorities. Second, to approve the strategic decision to exit the company's real estate finance portfolio through various means, including the sale of financing contracts to other financial institutions and mutual agreements with customers. The Board of Directors or authorized persons are empowered to approve these transactions and offer necessary discounts and waivers. The meeting concluded with the authorized signatory, Lama Takieddin, Head of Governance and Company Secretary, confirming the results.
