DFM's Al Mal Capital REIT Seeks Islamic Financing
Al Mal Capital REIT aims to refinance and acquire assets through Islamic banking, strengthening its financial position.
Summary
Al Mal Capital REIT is set to refinance existing loans and acquire new assets through Islamic financing, with a focus on maintaining compliance with Islamic Shari'a.
Dubai Financial Market PJSC, a cornerstone of the UAE's financial landscape, is making strategic moves through its Al Mal Capital REIT to bolster its financial structure and expand its asset base. The REIT has announced plans to refinance an existing Islamic banking facility and acquire a healthcare asset in Dubai, underscoring its commitment to growth and sustainability.
Al Mal Capital REIT is seeking approval from its unitholders to refinance an existing AED 227 million Islamic banking facility for Kent College Dubai, a part of its portfolio under Carnation Education LLC. The refinancing will be conducted through a club facility involving Ajman Bank PJSC and National Bank of Ras Al Khaimah PJSC (RAK Bank), each contributing AED 113.5 million. This strategic move is in line with the REIT's dedication to Islamic financial principles, as RAK Bank, a related party due to its unitholder status, necessitates ordinary approval from the General Assembly Meeting (AGM).
In addition to refinancing, Al Mal Capital REIT is also in the process of securing an Islamic banking facility of approximately AED 170 million to finance part of the acquisition cost of a healthcare asset in Dubai. The urgency of this acquisition highlights the REIT's proactive approach in capitalizing on growth opportunities within the Emirate.
The strategic refinancing and acquisition initiatives underscore the REIT's robust financial strategy and alignment with Islamic Shari'a principles, ensuring that all activities remain compliant with Islamic law. This focus not only strengthens the financial position of the REIT but also enhances investor confidence, particularly in a region where Islamic finance is a significant aspect of the economic framework.
Given the strategic moves by Al Mal Capital REIT, investors might consider holding their positions. The REIT's commitment to maintaining compliance with Islamic Shari'a, coupled with its strategic financial maneuvers, positions it well for future growth. However, potential investors should remain informed about the outcomes of the AGM and the successful completion of the proposed transactions.
Source
Summary
Al Mal Capital PSC, as the Fund Manager of Al Mal Capital REIT (AMCREIT), is inviting all unitholders to attend the General Assembly meeting scheduled for September 25, 2025, at 1:00 PM. The meeting will take place at Al Mal Capital PSC's head office in Dubai, UAE, and can be attended either in person or remotely. The agenda includes discussing an Islamic banking facility to refinance an existing AED 227 million facility for Kent College – Dubai, with funding from Ajman Bank and RAK Bank. Since RAK Bank is a related party due to its unitholder status in AMCREIT, approval from unitholders is required. Additionally, the Fund Manager seeks approval for obtaining any hedging facilities from RAK Bank and for acquiring Islamic banking facilities worth approximately AED 170 million to finance a healthcare asset acquisition in Dubai. If the Islamic financing transaction cannot be completed in time, the Fund requests approval to proceed with alternative financing arrangements.
