Investment Corporation of Dubai posts annual net profit of AED27.5bn
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Investment Corporation of Dubai posts annual net profit of AED27.5bn

Investment Corporation of Dubai posts annual net profit of AED27.5bn

The Investment Corporation of Dubai (ICD), the sovereign wealth fund owned by the government of Dubai, has recorded a 12.8 per cent rise in its full-year profit from continuing operations for 2015 to reach AED25.2 billion, the fund said on Tuesday. This compares with a profit of AED22.3bn seen in the previous year.


The corporation has stakes in more than two dozen Dubai-based companies across various industries, including Emirates Airlines, Emirates National Oil Company (ENOC), Emirates NBD and Emaar Properties.


“ICD’s strong financial results in 2015 are a reflection of the robust performance of our portfolio companies. We remain committed to achieving excellence in our performance and maintain a focus on diversifying our portfolio in key strategic sectors, in line with ICD’s mandate to support the continuing development of Dubai,” said Mohammed Al Shaibani, executive director and CEO of IDC.


The net profit attributable to equity holders, however, fell to AED22.9bn, a decline of 3.7 per cent from the AED23.8bn it made in 2014.


Revenue for the year ended December 31, 2015, also declined by 7.6 per cent to AED177.4bn, as cheap oil hurt ENOC’s revenues, ICD said.


It added that the drop in revenue was offset by a reduction in cost of revenues, which declined by 13.8 per cent. “As a result, gross profit reached AED42.2bn, an increase of 19.8 per cent that was primarily driven by lower unit costs at Emirates, improved margins at ENOC and a lower cost of funding at Emirates NBD,” the fund said.


The corporation had a one-off gain in 2014 from discontinued operations, as a result of the merger of Dubai Aluminium with Abu Dhabi-based Emirates Global Aluminium in 2013.


The corporation said its assets grew to AED720.1bn, rising by 7.1 per cent from the year-end position in 2014. The growth primarily resulted from an increase in loans and receivables at Emirates NBD, along with the inclusion of the assets of newly acquired companies and the purchase of new aircraft by Emirates.


Liabilities increased by 8.6 per cent to reach AED523.8bn. The increase primarily resulted from higher customer deposits at Emirates NBD, additional borrowings by subsidiaries and the inclusion of the liabilities of newly acquired companies, the fund said.
AMEinfo Staff

AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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