Dubai Investments Q3 Net Profit Up 227%

Conglomerate Dubai Investments, which has been eyeing opportunities to divest some of its businesses, said its third-quarter net profit more than doubled as it booked gains in the value of its investment properties.

The company, in which sovereign fund Investment Corp of Dubai (ICD) owns 11.5 per cent stake, posted third-quarter net profit of Dhs81.4 million ($22.16 million), compared with a profit of Dhs24.9 million for the year-ago period, it said in a bourse statement on Monday.

Quarterly profit was mainly boosted by a Dhs60 million gain on fair value of investment properties. It had booked a fair value gain of Dhs8 million for the same period last year.

Revenue for the quarter rose to Dhs669.1 million from Dhs580.7 million a year-ago, the company said.

Dubai Investments, whose manufacturing business was hit by political unrest in the Gulf Arab region, said earlier this year that it was eyeing an exit from some of its businesses and was reviewing such opportunities.

The company, which has interests in several sectors including property and manufacturing, had total assets worth Dhs13.7 billion at the end of the third quarter, Monday’s statement showed.

The conglomerate has said it wants to raise up to Dhs1 billion this year through the issue of sukuk, or Islamic bonds, to finance expansion of some manufacturing units and repay debt.

Dubai Investments shares have risen 45.6 per cent year-to-date.