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04 October 2023

Amlak hopeful of federal nod to merger shortly

Amlak offices at Emaar Business Park. The mortgage provider is enthused by customers' response to its prepayment charge waiver. (EB FILE)

By Parag Deulgaonkar

Amlak Finance, the Islamic mortgage company, is expecting the federal government's final decision on the soon-to-come merger, the company's chief official told Emirates Business.

"We are still anticipating a final decision from the federal government on the merger and we are optimistic that this will take place soon," said Arif Alharmi, CEO, Amlak Finance.

The Dubai-based mortgage provider, which had offered its customers a prepayment charge waiver if they settled their loans partially or in full, said the option was introduced upon requests from its customers.

"The response from our customers was welcoming indeed, since our introduction of this option was mainly due to several requests that we received from our customers," he explained.

"The offer gives those of our customers with sufficient cash flow, the ability to settle their financing account without any charges. Our aim is to offer flexibility and not to hinder their decisions to move forward by settling their accounts."

Asked if Amlak had reduced customers' sanctioned loan limits due to a cash crunch, he said: "We have not reduced the limit, since those whose applications were accepted for a particular amount remained the same, provided their documents matched their applications' submission."

"I believe all companies, especially the finance houses, are facing challenges due to the global financial downturn," he said. To a question on whether Amlak has not started accepting new applications, Alharmi said, "status is still the same".

On January 25, Amlak had announced a reduction of 0.85 per cent in its base lease rate from February 1.

Amlak also has not approached the Securities and Commodities Authority with the request of restarting trading in its shares. Shares have been suspended since 2007.


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