Local Business

DI earnings soar 58% to Dh321m

Issac John
Filed on April 24, 2013

Dubai Investments, or DI, the largest investment company listed on the Dubai Financial Market, announced on Tuesday that its net profit in 2012 attributable to shareholders rose 58 per cent to Dh321 million from Dh 203 million in 2011.

The group’s revenue rose four per cent in 2012 to Dh2.6 billion from Dh2.5 billion in 2011.

DI chairman Sohail Faris Ghanim Al Mazrui, addressing the group’s annual general meeting, said total assets stood at Dh13 billion compared with Dh13.5 billion in 2011.

“The growth in all sectors of UAE economy, coupled with stabilisation of the geopolitical scene and return of relative confidence in the eurozone, was important to all our business units. Our management team’s ability to control costs and generate investment results, however, was the keys to our surge in profits,” he said.

He said the pick-up in real estate, stock and capital markets, as well the expansion in the hospitality, tourism and service sectors, helped to produce significant returns from DI’s fixed income and equity portfolio. He said in 2012, DI finalised the restructuring of debt obligations at certain group entities and these companies are now fully focused on their operations and poised to deliver enhanced performance.

Al Mazrui said the group has prudently managed its cash flows and generated positive cash flows from operating activities amounting to Dh661.4 million during 2012 compared to Dh629.8 million in 2011.

“As access to capital markets widens and yields continue to fall, our subsidiary, Dubai Investments Park Development Co, plans to launch a Dh1.1 billion sukuk issuance during the year. The funds will be used partly for repayment of existing bank borrowings and for future expansion,” said Al Mazrui.

He said the outlook for 2013 is encouraging with economic indicators pointing to growth in all sectors. “Monetary policy around the globe is expected to remain flexible and will incentivise growth.”

“Investor confidence has returned to the UAE and the level is expected to climb with on-going infrastructure developments and new projects announced by Dubai and Abu Dhabi relating to all sectors of the economy. This will benefit our business units operating in diversified sectors,” said Al Mazrui.

He said DI has plans to enter new sectors in existing and new geographic markets as the economic environment continues to improve. “The group has plans to divest certain entities that have reached a level of maturity. The divestments will unlock significant underlying value and contribute good profits and cash flows to the group.”

— issacjohn@khaleejtimes.com

ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Business
MORE FROM Khaleej Times
CurrentRequestUnmodified: /apps/pbcs.dll/article?avis=KT&date=20210902&category=ARTICLE&lopenr=210909800&Ref=AR&profile=1037 macro_action: article, macro_profile: ,1037,1036 macro_adspot:
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios khaleejtimes - HUAWEI AppGallery