Amlak Finance PJSC's Strategic Moves in 2025

Amlak Finance PJSC, a prominent player in the UAE's financial sector, is gearing up for its Annual General Meeting (AGM) scheduled for April 21, 2025. This meeting, set to take place both virtually and in person at the Kempinski the Boulevard in Downtown Dubai, promises to be a pivotal event for shareholders and market observers alike.

The agenda for the AGM is comprehensive, covering a range of critical financial and strategic topics. Shareholders will have the opportunity to hear and ratify the Board of Directors’ report on the company’s activities and financial position for the fiscal year ended December 31, 2024. This report is expected to provide insights into Amlak's performance and operational strategies over the past year.

Furthermore, the AGM will include the ratification of the External Auditors’ report and the Internal Sharia Supervisory Committee report for the same fiscal year. These reports are crucial for ensuring transparency and compliance with both financial regulations and Islamic Sharia principles, which are integral to Amlak's operations.

One of the key points of discussion will be the company's balance sheet and profit and loss account. Shareholders will evaluate the financial health of Amlak, which will provide a foundation for future strategic decisions. Additionally, the AGM will consider and approve the Directors’ remuneration, a topic that often generates significant interest among investors.

In a noteworthy move, the Board of Directors has recommended not distributing dividends to shareholders, citing specific justifications. This decision, while potentially controversial, reflects a strategic choice to reinvest in the company's growth and stability.

The AGM will also address liability absolution for both the Board of Directors and the External Auditors for the year ending December 31, 2024. This is a standard practice aimed at ensuring accountability and maintaining investor confidence.

Two special resolutions are slated for consideration. The first involves voluntary contributions for 2025, capped at 0.2% of the net profit from 2024. The second resolution seeks approval for the sale of the company’s investments outside the UAE, in compliance with the UAE Central Bank's Finance Companies Regulation. This move is in line with Amlak's strategy to focus on core business activities and streamline operations.

Given the strategic decisions being made, particularly the divestment of non-core investments, investors may view Amlak Finance PJSC as a company poised for focused growth. While the decision not to distribute dividends might be seen as a drawback for income-focused investors, it underscores a commitment to long-term value creation. Therefore, considering the strategic direction and regulatory compliance, a hold recommendation is suggested for current investors, allowing them to observe how these strategies unfold in the coming year.