Arabian Post Staff
Investment Corporation of Dubai, an investment arm of Dubai Government, reported a 4.4 percent increase in net profits reaching Dh10.5 billion despite a 7.7 percent decline in revenues to Dh106.3 billion in the six month period ended 30 June 2019.
Investment Corporation of Dubai (ICD) portfolio companies comprises of 44 business organisations include Emirates Group and Emirates Airline, Emirates NBD.
The decline in revenues, caused by lower oil prices, were well compensated by the higher performance of the ICD business entities in the banking and financial services as well as transportation sectors, it said. “These increases were partially offset by lower profits in oil and gas and aluminium production,” it said in a statement.
Banking and financial services results were benefited by an Dh2.1 billion gain related to the IPO of Network International Holdings plc.
“Net profit attributable to the equity holder of ICD was Dh6.9 billion, a decrease of 8.3 per cent compared to the prior year period. Assets increased to a record Dh971.1 billion, rising 10.4 per cent from the year end 2018, whilst liabilities reached Dh739.3 billion, rising 15.3 per cent,” the statement said.
These increases were driven by the adoption of IFRS 16 new lease accounting rules which added Dh58.5 billion of assets and Dh68.2 billion of liabilities and by continued business growth. The group’s share of equity decreased by 3.7 per cent to Dh190.4 billion from year end 2018, driven primarily by a Dh9.7 billion one-time adjustment relating to the adoption of IFRS 16.
Mohammed Ibrahim Al Shaibani, Executive Director and CEO of ICD, commented: “During the first six months of 2019, although not immune to the global growth slowdown and the volatility of key commodities, the ICD group produced a solid performance showing the resilience of its activities. The diversification of its operations and the focus on improving further efficiencies and growing ICD core businesses helped weather challenging market conditions as ICD continues on its journey towards the realization of its long-term goals for the prosperity of Dubai”.
Investment Corporation of Dubai (ICD) is the principal investment arm of the Government of Dubai, established in May 2006 by a decree and mandated with the consolidation and management of the Government of Dubai’s portfolio of commercial companies and investments. ICD was also assigned the provision of strategic oversight to portfolio companies through the development and implementation of effective corporate governance policies, and sound investment strategies.
ICD’s portfolio comprises some of Dubai’s most recognized companies, and represents a cross-section of vital economic sectors that the Government of Dubai has deemed strategic for the continued development and growth of the emirate. The sectors include financial services, transportation, energy and industry, real estate and construction, hospitality and leisure, retail, and other holdings.
Also published on Medium.