Emaar may 'raise stake in Amlak'
Dubai, December 15, 2010
Dubai developer Emaar Properties may raise its stake in troubled Islamic mortgage provider Amlak but has not decided by how much, Emaar's chairman said on Al Arabiya television.
The United Arab Emirates' largest listed property firm may also take provisions related to Amlak in the first quarter of 2011, Mohammed Alabbar said in an interview on Wednesday.
'I believe if this is part of the solution (for Amlak) we will raise the stake,' he said.
Emaar, which holds a 48 per cent stake in Amlak, said in September that the Islamic lender may need to restructure its debt obligations which may expose Emaar to loan write offs and a decrease in the value of its investments.
He said currently there are no new companies looking to take a stake in Amlak but added Emaar would welcome other government institutions.
A resolution for Amlak could be found during the first quarter of 2011, Mohammed Al Shaibani, deputy chairman of Dubai's supreme fiscal committee said in November.
Dubai Islamic Bank earlier this year raised its stake in rival mortgage provider Tamweel effectively ending the prospect of a long-awaited Amlak-Tamweel tie-up.
Shares in Amlak and Tamweel have not traded since 2008 when the UAE government said it aimed to merge the two firms.
Emaar's shares were down 1.7 per cent at 0942 GMT, underperforming Dubai's bourse which eased 0.7 per cent.-Reuters