Amlak Finance Divests from Egypt in Strategic Shift
In a significant move signaling its evolving business strategy, Amlak Finance, a prominent real estate finance company based in Dubai, has successfully sold its subsidiary in Egypt to Al Baraka Bank Egypt for a total consideration of EGP 400 million, which equates to approximately AED 30.80 million. This divestiture is part of Amlak’s strategic decision to streamline its operations and focus on core markets that promise greater potential.
The sale marks Amlak’s complete exit from the Egyptian market, a move that reflects the company’s ongoing efforts to enhance financial stability and operational efficiency. This transition will impact Amlak’s financial statements, particularly reducing its retained earnings by AED 94 million, primarily due to the effects of foreign currency devaluation involving the Egyptian pound.
As Amlak Finance prepares for this shift, the anticipated financial effects are expected to be felt in the latter part of 2025, specifically during the third and fourth quarters. This foresight allows for better strategic planning and financial forecasting, showcasing Amlak’s commitment to maintaining a robust financial health while navigating a dynamic market environment.
In its latest report from June 2025, Amlak Finance reported a commendable net profit after income tax of AED 18.53 million for the first half of the year, representing a striking increase from AED 6.99 million recorded in the same period the previous year. This growth indicates the company’s successful transition and adaptability in the challenging landscape of real estate finance.
The decision to divest highlights Amlak Finance’s focus on maximizing shareholder value and reinforcing its core business strategies. As the company shifts its concentration, industry analysts will be keenly observing its next steps in the regional market, especially regarding future growth opportunities.
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Tags: #BusinessNews #WorldNews #Egypt #UAE
