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Dubai Investments buys 60% Al Mal stake

Isaac John (associate Business Editor)
Filed on February 2, 2015

Investment firm reports 63% profit surge for 2014; total assets up at Dh14.43b

Dubai — Dubai Investments, or DI, said on Sunday its board had approved the acquisition of a majority stake in investment firm Al Mal Capital. DI, which is listed on the Dubai Financial Market, also reported on Sunday an unaudited, preliminary net profit of Dh1.341 billion for 2014, a 63 per cent increase compared to Dh822.32 million net profit achieved in 2013.Dubai Investments buys 60% Al Mal stake

DI said in a statement that it would purchase 60 per cent of the financial firm that manages assets and offers investment banking services. Al Mal shut down its brokerage unit in the fallout of the 2008 financial crisis. 

Dubai Investments jumped more than seven per cent following the announcement to acquire 60 per cent of the Dubai investment bank Al Mal Capital. DI, whose largest shareholder is state-owned Investment Corporation of Dubai, rose 13.76 per cent to Dh2.48. The diversified Gulf-based investment group, which is in advanced talks to set up a university and a school as part of a move into the expanding education and healthcare sectors, said its Board of Directors had recommended 12 per cent cash dividend and 6 per cent in bonus shares to the shareholders

For 2014, DI recorded a   net operating profit of Dh 1.81 billion, an increase of 42 per cent compared to Dh 1.27 billion achieved in the previous year. Total assets as on December 31, 2014 surged to Dh14.43 billion as against Dh12.62 billion in 2013. The company said its total revenue for the year rose to Dh 3.19 billion from Dh 2.84 billion in 2013. The earnings per share also surged to Dh0.35, compared to Dh0.22 in 2013. The net profit in the fourth quarter of 2014 was Dh346.79 million, an increase of 18.8 per cent compared to Dh291.74 million in the fourth quarter of 2013.

Khalid bin Kalban, managing director and CEO of Dubai Investments, said in 2014, a year of sustained growth,  Dubai Investments successfully issued a five-year Sukuk of $300 million, divested controlling interest in Globalpharma, and divested Phase 8 of the Dubai Investment Park Development Company’s warehouse project.

“These activities have resulted in significant improvement in Group’s liquidity position. We are currently evaluating various investment proposals and are in advanced stages of negotiations for couple of investments, which are likely to be finalised in the first quarter 2015. Our sustained focus on delivering value, coupled with upbeat sentiment across various sectors of the UAE economy, has helped us move aggressively forward. We expect this growth momentum to continue in 2015,” said Kalban. DI also announced the launch of various key projects such as Mirdif Hills, Fujairah Business Centre, and Green Community Phase III during the year.

“As a Group, we have a strong focus on real estate sector and strategically promising businesses across sectors in the existing and new geographical locations across the region.We are also eyeing the acquisition of a financial entity to strengthen our asset mix,” added Kalban.

DI owns nearly 37 subsidiaries and joint ventures across a diverse range of sectors including manufacturing of construction-related materials, fast moving consumer goods, industrial and commercial properties, real estate management and property development, information technology solutions, driver education, district cooling and financial investments.

— issacjohn@khaleejtimes.com


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