Dubai, UAE:Â Amlak Finance reported a net profit of AED259 million ($70.52 million) for the year ended 31 December 2023 as compared to a net profit of AED476 million for the year ended 31 December 2022.
Amlak’s revenue for the year 2023 decreased by 18 percent to AED452 million as compared to AED552 million during the previous year.
Revenues from financing business activities for the year 2023 declined by 3 percent as compared to 2022 and stood at AED 122 million in 2023 (FY22: AED 127 million).
The company recorded a net gain of AED174 million (2022: AED 349 million) on debt settlement arrangements and was able to reduce its debt burden by AED531 million (including Mudaraba instrument of AED118 million).
Amlak’s operating costs for the year increased by 41 percent to AED149 million, compared to AED106 million last year mainly due to a one-off expense related to the commencement of negotiations with financiers to exit the Common Terms Agreement.
In the region, Amlak’s investment in Egypt witnessed the devaluation of the Egyptian Pound against AED which impacted the group’s financial position. In KSA, the investment yielded an income of AED 7 million.
