ICD swings back into the black in first half of 2021

The majority of the group’s profit came from banking and financial services, oil and gas, and aluminium production while transportation reduced its losses despite ongoing Covid-19 travel restrictions.



The largest sovereign wealth fund of the emirate recorded higher revenues of Dh75.2 billion during the first half of 2021 as compared to Dh73.7 billion during the comparative period last year, up by two per cent. — File photo
The largest sovereign wealth fund of the emirate recorded higher revenues of Dh75.2 billion during the first half of 2021 as compared to Dh73.7 billion during the comparative period last year, up by two per cent. — File photo

By Waheed Abbas

Published: Mon 29 Nov 2021, 8:26 PM

Investment Corporation of Dubai (ICD) swung back into black, posting Dh1.4 billion net profit for the first half of 2021 as against Dh9.4 billion loss for the same period last year, as the economy reopens and recovers from the impact of Covid-19 impact amidst uneven global economic recovery.

The turnaround was led by improvement in all the segments including its oil and gas and banking and financial sectors entities. In addition, overall strong cost discipline and lower impairment charges also help the sovereign wealth fund to bounce back.

The majority of the group’s profit came from banking and financial services, oil and gas, and aluminium production while transportation reduced its losses despite ongoing Covid-19 travel restrictions.

The largest sovereign wealth fund of the emirate recorded higher revenues of Dh75.2 billion during the first half of 2021 as compared to Dh73.7 billion during the comparative period last year, up by two per cent.

With $302 billion (Dh1.1 trillion) assets under its management, ICD is the world’s 12th largest sovereign wealth fund, according to SWF Institute. It owns some of the top local and global brands including Emirates airline, Emirates NBD bank as well as Mandarin Oriental Hotel in New York among others.

“Focused on our objectives, the ICD Group produced a much better performance than last year despite the slow lifting of global travel restrictions impacting some of our key activities. We made significant progress on our return to profitability, reaping the benefits of efficient cost management, and rallying commodity prices and financial markets. The recovery was also assisted by the continued support from the Government to businesses,” said Mohammed Ibrahim Al Shaibani, managing director of ICD.

“As economies gradually re-open and business sentiment improves, we are confident that the Group is well-positioned to benefit from the more favourable economic environment,” he added.

The results attributable to the equity holder were a net loss of Dh0.9 billion.

Assets and liabilities remained nearly flat at Dh1.1 trillion and Dh874.8 billion, respectively when compared to the 2020-end. The group’s share of equity decreased by 3.7 per cent to Dh185.5 billion.

— waheedabbas@khaleejtimes.com


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