AMLAK FINANCE Integrated Report 2021
Table
of Contents
05 About Amlak
- Chairman's Message
- CEO's Message
- Board of Directors
- Executive Management
- What drives us forward
- Amlak Through the Years
- Strategy
- Risk Management
- Products & Services
- Corporate Social Responsibility (CSR)
- Financial Trends
- Internal Shari'ah Supervision Committee's Report
- Report of Directors
- Independent Auditor's Report
- Consolidated Financial Statements
- Governance Report
- Sustainability Report
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About Amlak
Amlak Finance PJSC is a leading specialized real estate financier in the Middle East. Since its establishment in November 2000 as the region's pioneer financial services provider, it has provided its customers with innovative, Sharia- compliant property financing products and solutions designed to meet the rapidly evolving market demands.
It was first established as a private shareholding company in Dubai, United Arab Emirates, in accordance with UAE Federal Law. In 2004, it was converted to a Public Joint Stock Company.
The Company is licensed by the UAE Central Bank as a finance company. It is primarily focused on financing and investing activities based on structures such as Ijara, Murabaha, Mudaraba, Wakala and Musharaka. All activities of the Company are conducted in accordance with Islamic Sharia and within the provisions of its Articles and Memorandum of Association.
During 2007, Amlak expanded its operations and launched its first international office in Cairo, which operates under the name 'Amlak Finance Egypt Company S.A.E.' It also has business associations in Saudi Arabia under the name 'Amlak International For Real Estate and Finance Co.'.
Over the years, Amlak Finance has received a number of prestigious awards. These achievements are a testament to the Company's leading services, diligent corporate values, and ongoing efforts toward innovation.
Past Awards include:
- Global Islamic Business Award (GIBA)
- Best Sharia Compliant Property Finance Company
- Best Islamic Finance CSR Company in UAE
- Dubai Chamber of Commerce and Industry's CSR Label
Today, through a variety of customized property finance solutions, Amlak enables individuals and businesses to achieve their goals of owning a property in the UAE and remains committed to making a positive contribution not just to its customers, but also the wider UAE community.
Amlak Finance PJSC & its Subsidiaries | Amlak Finance PJSC & its Subsidiaries | About Amlak |
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Chairman's Message
Amid a challenging macroeconomic environment and continued headwinds caused by the COVID-19 pandemic, Amlak Finance demonstrated its agility and the resilience of its operating model throughout 2021, successfully closing the year in a robust position.
The operating environment experienced in 2021 remained somewhat challenging, however by the year-end, signs of economic progress were evident with leading indicators showing upwards trends, as consumer confidence rose, gross domestic product increased for many nations and capital market activity was underscored by a flurry of new issuers tapping markets around the globe in order to seize favorable market windows. The real estate sector was buoyed by positive market sentiment.
In 2021, Amlak Finance focused on prudently managing its UAE operations and balance sheet. Amlak reported a net profit of AED
1.06 billion for the year ended 31 December 2021 as compared to net loss of AED 438 million for the year ended 31 December 2020. With continued pressure caused by COVID-19, Amlak's revenues decreased slightly to AED 221 million from AED
283 million in 2020 excluding fair value losses on investment properties, gain on debt settlement and legal case settlement. Full year 2021 revenues from financing business activities are marginally lower than 2020 at AED 165 million in 2021 (FY20: AED 169 million), while rental income decreased by 46% during 2021 to AED 23 million (FY20: AED 42 million).
During 2021, a key milestone for Amlak Finance was the closure of an arbitration settlement, administered by the Dubai International Arbitration Centre, in favour of the business, with a net value of approximately AED 875 million.
Another achievement for Amlak in 2021 was its prudent management which saw it Debt settlement arrangements yield AED 465 million and was able to reduce its debt burden by AED 1,139 million (including Mudaraba instrument of AED 235 million).
In the region, Amlak's Egypt affiliate showcased its robustness, recording a 10% increase in profit from previous year. Our KSA office also demonstrated strength, recording a consistent income of AED 19 million.
As the impact of the pandemic continued, Amlak remained focused on supporting its customers to navigate the challenging period through its commitment to enhancing customer-centricity through various strategic initiatives.
As Amlak Finance sought to ensure business continuity and stability during the protracted pandemic, its true focus remained on its employees' wellbeing as it placed front and centre the safety of employees in all of its endeavours. our focus was - and very much remains - on the safety and wellbeing of Amlak Finance's employees.
As we look ahead, in 2022, Amlak is continuing its strategy to unlock new opportunities that will further enable it to adapt and respond to changing market realities whilst the company moves towards a bright future.
Our long-term goal is to continue sustainable growth for Amlak Finance. Generating value for our shareholders, managing our obligations , nurturing our employees and implementing prudent risk management will continue to be at the top of our corporate agenda.
On behalf of the Board of Directors, I would like to express my sincere gratitude to His Highness Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai, for his aspirational leadership and vision and drive for excellence across all sectors in the UAE.
I would also like to express my heartfelt thanks to the management and employees for their dedication and hard work, and to our customers for their continued loyalty and support. It is only with their contributions that we steered Amlak Finance confidently through what has been a turbulent year globally.
Ali Ibrahim Mohammad
Chairman of the Board
Chairman's Message | Amlak Finance PJSC & its Subsidiaries | Amlak Finance PJSC & its Subsidiaries | Chairman's Message |
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CEO's Message
In a year characterized by extraordinary challenges and opportunities, Amlak Finance has displayed remarkable resilience and adaptability. At Amlak Finance, 2021 has been a year of recovery and navigating the changes caused by the global pandemic.
Despite the disruption caused by the pandemic, we were able to maintain operational resilience and managed to achieve a number of important milestones over the course of the year.
One of our biggest achievements was the successful closure of a long-running arbitration case in favour of Amlak Finance. Administered by the Dubai International Arbitration Centre, the settlement for Amlak netted approximately AED 875 million including both plots and partial cash installments. This award, alongside our prudent management of our UAE operations and balance sheet supported our robust financial results. We reported a net profit of AED 1.06 billion for the year ended 31 December 2021 as compared to net loss of AED 438 million for the year ended 31 December 2020.
Amlak also recorded a gain of AED 465 million on debt settlement arrangements and was able to reduce its debt burden by AED 1,139 million (including Mudaraba instrument of AED 235 million). Our income for the year increased by 215% to AED 1,298 million as compared to AED 412 million during last year excluding fair value losses on investment properties. This increase in income is mainly attributed to the settlement of the arbitration and the gain resulted from the debt settlement arrangements.
Furthermore, revenues from financing business activities for the year were marginally lower by 2% as compared to 2020 and stand at AED 165 million in 2021 (FY20: AED 169 million), while rental income decreased by 46% during 2021 to AED 23 million (FY20: AED 42 million).
In 2021, we continued to effectively manage our obligations including repayment of AED 181 million to financiers in 2021 and full settlement with four financiers. To date, Amlak has paid 69% of its Islamic deposit liabilities relating to Financiers.
Looking internally - throughout the course of the year, we initiated a cultural transformation journey. We prioritized our focus on employee wellbeing and developed strategies to ensure continuity despite the ongoing COVID-19 pandemic. In a short span of time, we normalized operations and safely returned to our offices thanks to the visionary directives of the UAE's wise leadership and the robust implementation of the vaccination program.
Egypt remained a key market for us, and I am pleased to note that, last year we saw the development of greater alignment with our colleagues at Amlak Egypt. As we look ahead, we will continue to build on these ties to create further synergies over the next year.
We have also seen considerable growth and momentum in Saudi Arabia where we have yielded a consistent income of AED 19 million.
The other significant milestone was the launch of our new corporate values that reflect the essence of our identity. Our new values of Agility, Trust, Collaboration and Accountability are underpinned by a set of behavioral competencies that will act as catalysts to support our cultural transformation and will
become an integral part of our performance metrics.
In addition to building our culture, 2022 will see a continued focus on customer-centricity as we look to further improve our customer satisfaction and ensure that we meet their needs.
As we step into the future, there are surely some challenges that lie ahead, however we remain optimistic about future opportunities and are confident that we are well placed to capitalize on them.
In closing, I would like to thank the Board of Directors, the Management Team and all of Amlak's employees for their unwavering support and dedication.
I would also like to thank our loyal customers, shareholders and stakeholders for their continued trust and support in us.
Arif Alharmi Albastaki
CEO
CEO's Message | Amlak Finance PJSC & its Subsidiaries | Amlak Finance PJSC & its Subsidiaries | CEO's Message |
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Amlak Finance PJSC published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 06:07:02 UTC.
