Dubai's Amlak sees '08 profit surge

By John Irish and James Cordahi

DUBAI (Reuters) - Dubai-based Islamic mortgage lender Amlak Finance AMLK.DU said it expects profit this year to rise 70 percent, the same as last year's target, spurred by higher United Arab Emirates residential demand and investments sales.

Profit at Amlak, the UAE's first mortgage company and the third-most traded stock on the Dubai exchange, more than doubled last year to 301 million dirhams ($81.97 million), helped by the sale of investments in listed companies, Chairman Nasser al-Shaikh told the Reuters Islamic Finance Summit in Dubai on Tuesday.

"We're looking at 70 percent profit growth again in 2008 ... we will be more aggressive in our core business," Shaikh said.

Amlak, which generated 15 percent of its profit last year from the sale of investments, still has a stake in Dubai Aerospace Enterprise, which it could sell, Shaikh said.

Operations in Egypt and Saudi Arabia, both of which started last year, will contribute to revenue this year, he said, as Amlak expands abroad to reduce its reliance on its home market where competition is growing.

"We're looking at foreign operations contributing around 50 percent of our financing book and revenue within three years," Shaikh said.

The company, which is part owned by Dubai-based Emaar Properties EMAR.DU, plans to expand into Jordan, Qatar and Bahrain before July, Shaikh said.

In Jordan, it plans to sell about 30 percent of a $70 million company in an initial public offering in the second quarter, later than expected following a request from the Jordanian financial authorities, Shaikh said.  Continued...