Dubai Investments reports net profit of Dhs1.56bn for the year ended 31 December 2008

The net profit for the year was Dhs1.56bn, 4% more than the net profit of Dhs1.50bn for the previous year.

DI's profit for the year from its core business activities increased to Dhs1,116m from Dhs925m for the previous year, representing a growth of 21%. However, DI's results for the year were impacted due to significant write-downs of Dhs368m, owing to mark-to-market requirements in its investment portfolio of shares, bonds and structured products.

In spite of this, DI managed to post an overall increase of 4% in net profit for the year. DI has adopted a strategy of maintaining high liquidity with strong cash flows generated from its business activities.

Total Assets 'Assets' as at 31 December 2008 are Dhs14.11bn, representing a growth of 38% over the Assets of Dhs10.24bn at 31 December 2007. Net Worth as at 31 December 2008 is Dhs7.23bn, a growth of 46% over the Net Worth of Dhs4.96bn at 31 December 2007. This was achieved due to substantial net profits realized and increase in share capital on rights issue.

The return on average Net Worth achieved for the year is 26% and return on average Share Capital is 58%. The earnings per share (EPS) for the year is Dhs0.48, while the return on average Assets achieved for the year is 13%.

"Dubai Investments achieved its best ever annual results in spite of extremely challenging economic and financial conditions," said Khalid Bin Kalban, Managing Director and CEO of Dubai Investments. "The fundamentals of our business remain strong due to the diversified investment base, and we are well placed to take advantage of potential opportunities in the coming months due to our strong liquidity position."