Dubai wealth fund ICD records full year profit of Dhs36.1bn

Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund, reported an annual net profit of $9.8bn (Dhs36.1bn) for 2022, driven by growth across all business segments.

ICD said its transportation segment returned to profitability in an impressive turnaround, the oil and gas division posted an 82 per cent increase in profit and the other segment recorded a robust 115 per cent growth buoyed by the real estate and hospitality sectors.

“With the strong momentum in the Dubai economy, the ICD Group was able to further deploy its operational capacity in an agile manner and benefited both from a scale effect and a strong discipline on costs, producing its best-ever performance,” said Mohammed Ibrahim Al Shaibani, managing director, Investment Corporation of Dubai.

The wealth fund said its banking and financial services division, the largest contributor in 2022, generated Dhs15.3bn of net profit. ICD said the net profit attributable to the equity holder came in at Dhs29.8bn.

The Investment Corporation of #Dubai profits grew 250% in 2022 to AED 36 billion. Additionally, revenues witnessed a substantial increase, rising by 58% to AED 267 billion compared to the previous year. @ICDdubai pic.twitter.com/OwCjZsTvqJ

— Dubai Media Office (@DXBMediaOffice) May 31, 2023

The firm’s full-year revenues surged by 58 per cent to a record Dhs267.4bn in 2022 from Dhs98bn the previous year period, thanks to a significant increase in travel and tourism activities in the city.

“Overall, revenues grew faster than operational costs, boosting margins,” ICD said in a statement.

ICD’s total assets soared by 6.9 per cent to reach a record Dhs1.2tn. The wealth fund said its liabilities increased to Dhs8.1m while borrowings and lease liabilities dropped by 9 per cent. The group’s share of equity increased by 13.6 per cent rising to Dhs216.5bn.

Al Shaibani said the group’s balance sheet ended the year in a very favourable position, with improved asset quality, liquidity and leverage and a record equity base.

ICD has demonstrated resilience from a volatile period marked by geopolitical conflicts and rising interest rates and the fund’s businesses are expected to build on these strengths to weather global uncertainties as well as seize opportunities that come with it.

ICD portfolio

Founded in 2006, ICD has $309bn assets under management, according to the Sovereign Wealth Fund Institute.

As the principal investment arm of the Dubai Government, ICD’s aviation portfolio includes the Emirates Group, flydubai and Dubai Aerospace Enterprise.

Dubai’s Emirates Group reported record profit and revenue figures for the year ending April 2023, supported by a surge in travel demand as the majority of pandemic-induced travel restrictions were lifted. The group’s annual profit reached $3bn (Dhs10.9bn) while its revenue soared by 81 per cent to Dhs119.8bn.

Similarly, flydubai reported a full-year profit of Dhs1.2bn in 2022. The budget carrier’s annual revenues jumped 72 per cent to Dhs9.1bn from Dhs5.3bn a year earlier.

The wealth fund also holds stakes in Dubai Islamic Bank (DIB), Emirates NBD, Emaar Properties and Emirates National Oil Company (ENOC). Emirates NBD’s Q1 2023 net profit surged by 70 per cent year-on-year (YoY) more than doubled to a record Dhs6bn while DIB’s group net profit jumped 12 per cent YoY to Dhs1.51bn compared to Dhs1.34bn in Q1 2022.

Read: Dubai’s Emirates Group reports highest-ever annual profit of Dhs10.9bn for FY2022/23