Plan for Amlak seen in Q1 2011
Dubai, November 28, 2010
A resolution for troubled Islamic mortgage lender Amlak Finance could be found during the first quarter of 2011, a senior Dubai official said on Sunday.
The United Arab Emirates government said in November 2008 it aimed to merge Amlak with rival lender Tamweel but the plan was effectively scrapped after Dubai Islamic Bank raised its stake in Tamweel in September.
'We are in intense negotiations with all creditors and shareholders of Amlak. I would like to see a solution for Amlak by Q1 2011,' said Mohammed Al Shaibani, deputy chairman of Dubai's supreme fiscal committee.
Possible scenarios for Amlak could include a similar bank takeover, a shareholder increase or direct government support.
Shares in Amlak and Tamweel have not traded since 2008. – Reuters