Dubai Holding eyes Dh5.5 billion profit

Dubai Holding Commercial Operations Group Records AED 204 million Net Profit in 2011 (Dubai Holding Companyâ??s CEO Ahmed bin Bayat). -WAM FILE

Dubai Holding eyes 17 per cent growth in net profit this year as the group strategically diversifies its investment portfolio in domestic and international markets, its top official says.
Ahmad bin Byat, managing director and vice-chairman of Dubai Holding, said the company's year-on-year net profit in 2015 is expected to reach Dh5.5 billion compared to Dh4.7 billion in 2014. He said global investment holding company will be investing Dh4.5 billion in infrastructure development projects to promote innovation and creativity in the emirate.
In an exclusive chat with select media groups on Tuesday, he said the economic condition in Dubai is good and offers encouraging environment for investment.
"Work on Mall of the World project is progressing as per plan. We will break ground for this mega development next year and part of the project will be ready by 2020 for World Expo visitors," Bin Byat told Khaleej Times at the meeting organised by Media Office of Dubai Government.
He said Dubai Holding is keen to expand its presence in international markets but the main focus will remain on its home base Dubai.
"We want to known as international trade brand such as Emirates airline and Jumeirah Hotels Group," he said, adding that the company's overseas investments do not exceed six per cent of its total business portfolio.
To a question, he clarified that Dubai Holding is ready to increase its investment abroad only if it finds good opportunities and guaranteed return on investments.
"We quit American market after making good profits, but we might return in case good opportunities exists there," he said.
About the investments in the Arab Spring countries and Greece, he said Dubai Holding had investments in the Greek banking sector but it left the country after the financial crisis hit the European nation.
"We have now invested in Egypt, Morocco and Tunisia where the company is setting up mega projects. Dubai Holding has invested $1 billion in telecommunications sector of Tunisia," he said, adding that few projects had been postponed and suspended due to the unstable situation in these countries.
Bin Byat said the group has also made investments in India and Malta. "We are waiting to avail the investment opportunities depending on international economic outlook, as the growth rates in Europe is one per cent, America two per cent, the GCC 3.5 per cent and Dubai five per cent, India nine per cent while it is minus four per cent in Russia," he said.
He said Dubai Holding is committed to its financial obligations and will pay its liabilities as per plan.
"The last obligation of Dubai Holding will be in January 2017 when it will clear bond payment worth £500 million," he told Khaleej Times, adding that the company doesn't depend on the "quick profit" policy, but it is rather keen on carrying out a long-term strategic projects.
He said that 60 per cent to 70 per cent of the company's earnings are recurring revenues from nearly 25,000 residential units and offices in different parts of the emirate, including its latest portfolio at Dubai Design District. He said the estimated assets of the company hit Dh130 billion with 22,000 employees on its payroll.
"Areas affiliated to Dubai Holding have attracted top companies with a total of 72,000 employees. These companies will significantly contribute in the development and growth with their skill and latest technologies in the innovative fields," said Bin Byat, who is also the chairman of the board of directors of du.
He said that Dubai is a destination for 13 million tourists in a year and the emirate is on track to welcome 20 million visitors by 2020.
He also spoke at length on innovation and said the group had allocated part of its next year budget to support innovation in the emirate. He also discussed latest trends in telecommunications sector and said the geographical location of the UAE is very important.
- malzarooni@khaleejtimes.com 
 

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