• Dubai’s Amlak Finance saw its share price rise 14.7 per cent since trading resumed on 2 June
  • They ended at AED1.17 ($0.32) a share on 3 June

Shares in Dubai’s Amlak Finance rose by 14.7 per cent on 3 June, the second day after trading resumed.

It ended the day at AED1.17 (32 cents) a share, on a buoyant day for the Dubai Financial Market (DFM).

They continued to rise as the DFM opened on 4 June.

The continual growth suggest investors are confident Amlak has returned to profitability after a long period of restructuring.

This is despite a slowing real estate market in Dubai, where the firm is heavily exposed.

The first day of trading saw high activity, with 202,398,559 shares traded in 3,254 transactions after trading resumed at 10am on 2 June, making it the most traded share on the DFM.

Activity remained high on 3 June, with 165 million shares traded.

However, after a volatile morning, the share price settled at AED1.02, the price at which trading was frozen almost seven years ago.

Trading was suspended in 2008 during the emirate’s real estate crisis, when Amlak’s debts became unsustainable.

The Islamic mortgage provider and real estate financier restructured $2.7bn of debt in August 2014, according to a statement to the DFM.

It reduced its total liabilities from AED13.8bn in 2008 to AED5.5bn by the end of 2014. The firm’s assets also fell from AED15.8bn in 2008 to AED7.3bn in 2014.

Amlak recorded net profit attributable to its equity holders (after non-controlling interest) of AED59m in 2014 and AED3.7m in the first quarter of 2015.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices