Dubai's Amlak pays Dh898m - settles all dues with financiers

Dubai: Amlak, the Dubai financial services company, has settled all dues with financiers, paying off Dh898 million to six remaining financiers.

Amlak recently got the approval of shareholders to shed its real estate portfolio. There was also a deal with Emaar to sell land it owns in Ras Al Khor.

Since the company put together its initial restructuring under a 'Common Terms Agreement' back in 2014, Amlak had settled Dh10.2 billion with 29 financiers.

On DFM, the stock has gained over 90% in the year-to-date to Dh1.68.

And on Thursday (July 24), Amlak fully settled its remaining financial obligations - which were contractually scheduled to be settled only by October 2026. This meant another 6 financiers got Dh898 million.

This is a 'key step towards the formal CTA exit'.

"Over the past few years, the settlement of financial obligations has been one of the most significant challenges," said a statement.

"The Board of Directors and leadership team have exerted exceptional efforts in this regard to actively engage with the financiers and settle the obligations.

"This achievement was further reinforced by a series of strategic steps, including the sale of some land assets, which aligned with the company’s long-term vision and facilitated the early settlement with the financiers."

According to Arif Albastaki, CEO of Amlak Finance, “We are following a strategic path that not only strengthens our financial position but also allows us to focus on high-growth opportunities.

"This represents a critical step forward as we transition into a more agile and focused organisation."