Amlak Finance

1. Company Overview & Earnings Context

Amlak Finance PJSC is a Dubai-based Islamic finance company licensed by the Central Bank of the UAE. Its core activities include financing and investment through Sharia-compliant structures such as Ijara, Murabaha, Mudaraba, Wakala and Musharaka.

Amlak delivered a significant improvement in H1 2026 profitability, with net profit increasing to AED 77.29 million from AED 18.53 million in H1 2025. The performance was supported by significantly higher income from Islamic financing and investing assets, improved continuing operations and gains from discontinued operations.

2. Financial Performance Snapshot

• Income from Islamic Financing & Investing Assets: AED 54.38 Million (+1,672.6% YoY)

• Profit Before Distribution to Financiers: AED 52.33 Million (+61.0% YoY)

• Profit Before Tax – Continuing Operations: AED 52.33 Million (+184.3% YoY)

• Net Profit – Continuing Operations: AED 43.93 Million (+136.8% YoY)

• Total Net Profit: AED 77.29 Million (+317.0% YoY)

• Basic Earnings Per Share (EPS): AED 0.0506, compared with AED 0.0109 in H1 2025

Compared with H1 2025:

• Islamic financing and investing income increased from AED 3.07 million to AED 54.38 million.

• Profit before distribution to financiers increased from AED 32.51 million to AED 52.33 million.

• Profit before tax from continuing operations increased from AED 18.41 million to AED 52.33 million.

• Net profit from continuing operations increased from AED 18.55 million to AED 43.93 million.

• Total net profit increased from AED 18.53 million to AED 77.29 million.

• Basic EPS increased from AED 0.0109 to AED 0.0506.

3. Operational Highlights & Key Metrics

• Total Assets: AED 2.75 Billion

• Total Equity: AED 2.46 Billion

• Total Liabilities: AED 285.65 Million

• Islamic Financing & Investing Assets: AED 2.34 Billion

• Cash & Cash Equivalents: AED 2.22 Billion

• Net Operating Cash Flow: AED 210.58 Million, versus an outflow of AED 128.16 million

• Investment in Joint Venture: AED 98.32 Million

• Dividend Paid During H1 2026: AED 735 Million

4. Key Performance Drivers

A key driver of Amlak's H1 2026 earnings was the sharp increase in Islamic financing and investing income to AED 54.38 million from AED 3.07 million. The Group's Wakala deposits were particularly important, generating AED 51.63 million in profit, compared with AED 2.81 million in the prior-year period.

Discontinued operations also made a substantial contribution, generating AED 33.36 million of profit, compared with a marginal AED 17,000 loss in H1 2025. This was mainly driven by financial assets classified at fair value through profit or loss, which contributed AED 33.39 million, including gains from portfolio recoveries and fair-value movements.

Amlak additionally generated gains of AED 6.49 million from the sale of investment properties and AED 5.77 million from the sale of office units during the period. However, the share of profit from its joint venture fell sharply to AED 1.43 million from AED 54.46 million, partially offsetting these gains.

5. Outlook & Forward Considerations

One of the most important developments is Amlak's ongoing strategic review. Management has commenced a review of the Group's strategic options, and the Board has approved the appointment of a financial adviser to assess alternatives regarding the company's future direction. The outcome will ultimately be presented to shareholders for approval.

Amlak is also continuing to monetize and simplify its asset portfolio. During H1 2026, it received the remaining proceeds from the previously completed sale of Amlak Finance Egypt, while certain Al Ttay investment properties remain classified as held for sale and are expected by management to complete the sale process within the next six months.

Management and the Board stated that Amlak's current financial position, strong liquidity and future plans provide sufficient resources for the Group to continue operating for the foreseeable future.

6. Investor Takeaway

Amlak Finance delivered a strong H1 2026 earnings improvement, with total net profit rising more than fourfold to AED 77.29 million and continuing-operations profit increasing 136.8% YoY to AED 43.93 million. Islamic financing and investing income expanded sharply, while operating cash flow swung from a sizeable outflow in H1 2025 to AED 210.58 million of positive cash generation.

However, the composition of earnings is important to monitor. AED 33.36 million of H1 profit came from discontinued operations, while joint-venture earnings declined materially. Total assets also fell to AED 2.75 billion from AED 3.42 billion at year-end 2025, partly reflecting Amlak's ongoing asset disposals and portfolio restructuring.

The most important development going forward is the Board-led strategic review of Amlak's future direction. With a strong liquidity position, substantially reduced liabilities and continued asset monetization, the outcome of this process could become a major factor shaping the company's next phase.