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- Investment Corporation of Dubai reports 27.5% jump in assets to Dh1.12 trillion
Investment Corporation of Dubai reports 27.5% jump in assets to Dh1.12 trillion
Investment Corporation of Dubai, a Dubai Government investment and asset management arm, reported a 16.9 percent growth in net profit reaching Dh25 billion (US$6.8 billion) in 2019, compared to Dh21.8 billion (US$5.94 billion) recorded in 2018.
Investment Corporation of Dubai (ICD), established in 2006 to consolidate and manage Dubai Government’s assets, has a well-diversified portfolio including aviation and transport, banking and finance, real estate and construction, hospitality and tourism, energy and utility. Its assets includes Emirates airline and Emirates Group, Emirates NBD, Dubai Islamic Bank, Commercial Bank of Dubai, Emirates National Oil Company (ENOC), Dubai Duty Free, Dubai Aerospace Enterprises, among many others.
However, its revenues declined 1.9 percent from Dh232 billion (US$63.21 billion) in 2018 to Dh228 billion (US$62 billion) in 2019, due to the drop in revenues from oil and gas resources.
Net profit attributable to the equity holder of ICD was Dh18 billion, an increase of 10.7 per cent compared to the prior year period. Assets jumped 27.5 percent to a record Dh1.12 trillion (US$305 billion), while liabilities jumped 35.6 percent to Dh869.7 billion (US$237 billion).
The group’s share of equity increased by 3.5 per cent to Dh204.6 billion from the year-end 2018, despite a Dh9.7 billion one-time adjustment relating to the adoption of IFRS 16.
“Net profit grew 16.9 percent from the prior year to Dh25 billion including a record contribution from banking and financial services and a strong performance from transportation. These increases were offset by lower contributions from oil and gas and aluminium production. Banking and financial services results benefited from an Dh4.4 billion gain on the partial disposal of Network International Holdings Plc and the fair value measurement of its remaining stake,” a company statement said.
Banking and financial services include DenizBank A.Ş., Emirates NBD’s new acquisition.
Mohammed Ibrahim Al Shaibani, Executive Director and CEO, Investment Corporation of Dubai commented: “In 2019, ICD produced a very solid performance given the considerable challenges faced by the global economy and the effect that these have had on our businesses. The diversification of our activities and their resilience in volatile markets are two significant contributing factors when it comes to delivering consistent performance year-on-year. Moreover, the record asset level reached by ICD, well in excess of the Dh1 Trillion mark, reflects the continued growth achieved by our key businesses over time and the scale of their operations.
“In 2020, with the significant disruptions arising in the wake of the Covid-19 crisis, we are focused on adjusting our operations to preserve their ability to operate competitively when the health crisis subsides. We remain confident that ICD’s businesses can deliver sustainable returns over the long term for the prosperity of Dubai.”