ICD says all entities contribute to strong performance

The holding firm said transportation and other segment benefited from the significant surge in travel and tourism activities

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council of Dubai, Chairman of ICD, chairs the board meeting in Dubai on Wednesday. — Wam

Waheed Abbas

Published: Wed 30 Nov 2022, 7:47 PM

Last updated: Wed 30 Nov 2022, 7:48 PM

Dubai sovereign wealth fund the Investment Corporation of Dubai (ICD) on Wednesday said all of its entities contributed to the record financial performance during the first half of 2022 on the back of recovery in the emirate’s key sectors.

The holding firm said transportation and other segment benefited from the significant surge in travel and tourism activities while oil and gas revenues also jumped on the back substantially higher international oil prices.

The sovereign wealth fund, which controls stake in many flagship entities such as Emirates airline, flydubai, Emirates NBD bank, Dubai Islamic Bank and others, generated record revenues of Dh121.1 billion and record net profit of Dh14.8 billion during H1 2022.

In first half of 2021, ICD posted Dh75.2 billion revenues and Dh1.4 billion net profit.

“We are proud to record ICD’s best-ever financial performance during the first half of a year, underscoring Dubai’s position as one of the world’s most dynamic, resilient, and future-ready cities. By embracing change and innovation, Dubai offers an exceptional and exemplary model to emulate for shaping the new world economic paradigm,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council of Dubai, Chairman of ICD.

Chaired by Sheikh Hamdan, the ICD board approved its consolidated financial results in the presence of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Vice-Chairman of ICD.

The UAE, especially Dubai, has been recovering very strongly after the pandemic. The International Monetary Fund recently projected UAE GDP to grow over six per cent in 2022, led by a strong rebound in tourism, construction, activities related to Expo 2020 and high oil prices.

The ICD added that transportation segment returned to profitability in a significant turnaround. While oil and gas improved its profits by 190 per cent, and the other segment increased by 129 per cent, helped record earnings from aluminium production and strong fundamentals in the real estate and hospitality sectors.

In the industrial sector, the company owns stake in Dubal Holding, Ducab and Emirates Global Aluminium. In the hospitality and real estate segment, it owns stakes in Dubai World Trade Centre, Atlantis The Palm, Emaar and others.

ICD’s assets expanded to a record Dh1.136 trillion liabilities were up marginally to Dh887.5 billion, while borrowings and lease liabilities slightly declined.

Despite the challenging global economic outlook, Mohammed Ibrahim Al Shaibani, managing director, ICD said the firm maintains a strong balance sheet and he is confident of the growth potential of its businesses.

He added that the parent firm will remain cautious and selective in how it deploys new capital.

— waheedabbas@khaleejtimes.com