Dubai wealth fund ICD posts Dhs60.8bn in full-year profit

The Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund, has reported a 68 per cent surge in full-year profit, bolstered by its transportation, banking and financial services assets amid strong economic momentum in the region.

ICD posted a record-high net profit of $16.56bn (Dhs60.8bn), buoyed by an increase of Dhs24.6bn from the fund’s transportation business, up 119 per cent, and banking and financial services, up 69 per cent.

“The strong regional economic momentum and increased competitiveness of our businesses created an effect of scale resulting in higher margins and performance of our portfolio companies operating in the transportation, banking and financial services, and other segments,” said Mohammed Ibrahim Al Shaibani, managing director of ICD.

“Overall, the improved liquidity, asset quality, and the reduced leverage in non-banking operations further strengthened the group’s financial position; assets and equity reached new records.”

The state investor said its real estate and hospitality segments also displayed strong performance, but lower commodity prices reduced profitability in oil and gas, and aluminium production compared to the same period a year ago.

ICD’s revenues jumped 16 per cent to reach Dhs310.2bn, an increase of Dhs42.8bn compared to the previous year, supported by higher passenger traffic in transportation and asset growth and higher interest rates in banking services.

The net profit attributable to the equity holder, the Government of Dubai, came in at Dhs50.3bn, up 69 per cent while assets grew by 12 per cent or Dhs145.3bn to a new record high of Dhs1.32tn.

Meanwhile, unveiled a rebranding of its visual identity incorporating a new logo in January, as part of the fund’s broader strategy to adapt to the evolving global investment landscape.

Going forward, Dubai’s sovereign fund will be known by its acronym ‘ICD’, with its visual identity reflecting its dynamism and evergreen commitment to the pursuit of growth and development.

Founded in 2006, ICD is the principal investment arm of the government of Dubai and has holdings in Emirates Group and Emirates NBD, Emaar Properties and Emirates National Oil Company (ENOC). The fund is chaired by Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince and Chairman of The Executive Council of Dubai.

Last December, Dubai set up a fund to drive investments in strategically important projects on behalf of the government. The Dubai Investment Fund, as the fund is known, holds stakes in entities including utility giant DEWA, toll operator Salik and Dubai Taxi Company – which were privatised over the past years.

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