Dubai investment arm records higher profit for 2019

DUBAI — The Investment Corporation of Dubai (ICD) reported on Wednesday a 16.9 per cent rise in 2019 profit, but anticipated "significant disruptions" ahead due to the coronavirus pandemic. 

      The emirate's investment arm, which holds major stakes in a highly diversified portfolio, said it posted a 25 billion dirham ($6.8 billion) net profit compared to $5.8 billion in 2018.

      Chaired by Sheikh Mohammed Bin Rashid Al Maktoum, UAE vice president and ruler of Dubai, ICD owns giant firms like Emirates Airline, the largest in the Middle East, Emaar Properties, the region's biggest real estate firm, and UAE's second largest lender, Emirates NBD bank.

      It said its revenues last year dropped by 1.9 per cent year-on-year to $62 billion over a decline in income from the energy and transport sectors.

      "In 2019, ICD produced a very solid performance given the considerable challenges faced by the global economy and the effect that these have had on our businesses," CEO Mohammed Ibrahim Al Shaibani said.

      "In 2020, with the significant disruptions arising in the wake of the COVID-19 crisis, we are focused on adjusting our operations to preserve their ability to operate competitively when the health crisis subsides," he said.

      Unlike in the rest of the Gulf, oil income is not a dominant factor and makes up just 6.0 per cent of Dubai's diversified economy which relies heavily on tourism, real estate and trade.

      ICD has wide-ranging investments in the financial services, transport, energy and industry, real estate and construction, hospitality and other sectors.

      Last year, the firm's assets rose to a record $305 billion from $240 billion in 2018.