Investment Corporation first-half profit climbs as assets surge to a record
Net income driven by strong performance of its banking and financial services and transportation assets
Investment Corporation of Dubai (ICD), the principal investment arm of the emirate’s government, reported a 4.4 per cent rise in half-year net income as assets climbed to a record.
Net profit for the six months ending June 30 rose to Dh10.5 billion from a year earlier, driven by higher performance of its banking and financial services and transportation portfolio, ICD said in a statement on Wednesday. The banking and financial services segment received a Dh2.1bn boost from the initial public offering of payments firm Network International, it added.
Assets of ICD, whose portfolio includes stakes in some of the UAE's most recognisable companies including Emirates airline and Dubai biggest bank Emirates NBD, increased to a record Dh971.1bn, a 10.4 per cent rise from the end of the last year. Liabilities also rose 15.3 per cent to Dh739.3bn. ICD attributed the increase to the adoption of new lease accounting rules known as IFRS 16, which added Dh58.5bn of assets and Dh68.2bn of liabilities, according to the statement.
Profit attributable to the equity holders of ICD, however, declined 8.3 per cent to Dh6.9bn, and revenues for the period dropped 7.7 per cent. Both profit and revenues were pulled down, primarily by lower oil prices, it noted.
“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 [business] activities,” Mohammed Ibrahim Al Shaibani, executive director and chief executive of ICD, said.
“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 realisation of its long-term goals for the prosperity of Dubai.”
In October, ICD signed a collaboration deal to "explore mutually beneficial investment opportunities" with Russia's sovereign fund, the Russia Direct Investment Fund. The pact will lead to a co-investment platform being set up to look at investment opportunities in both the UAE and Russia.
The agreement, signed during Russian President Vladimir Putin's visit to the UAE, is a “significant first step towards exploring the potential benefits and growth that are realisable on both sides”, Mr Al Shaibani said at the time.
Updated: December 19, 2019 04:34 PM