Dubai’s Amlak expected to resume trading in 2014
Mortgage lender had its shares suspended in 2008 when global recession hit
Dubai’s indebted mortgage lender Amlak Finance is expected to resume trading during the first half of 2014 after its shares were suspended for five years, UAE Economy Minister Sultan Bin Saeed al-Mansoori told Al Arabiya News.
“As per the planning that we have put forward, the company will be listed again in the first half of 2014,” al-Mansoori said.
In late 2008, Amlak, which funded much of Dubai’s property boom, had its shares suspended after it was hit by the global credit crunch.
Dubai’s debt crisis has also caused Amlak’s prices to decline more than 50 percent from their peak.
The government committee, which was founded to overhaul Amlak, struggled to find a solution for the indebted company.
Reaching a solution
Amlak has been in talks with a six-member creditor committee, which according to Reuters includes two government-owned funds as well as Dubai’s largest lender and its biggest Islamic bank, to address 7 billion dirhams ($1.9 billion) debt.
“The government had to intervene,” Mansoor explained.
“We had reached a solution that was shown to depositors to decide upon, which will guarantee their rights,” he said, adding “the solution is to guarantee payment for the depositors in the upcoming years.”
However, he didn’t specify the number of years when shareholders will receive their payment, as the proposed solution needs to be fully accepted and signed.
A government solution was expected because Amlak had a big property investment portfolio.