Dubai’s ICD reports 16.9% rise in 2019 profits

Its 2019 revenues dipped 1.9 per cent to Dhs228bn



The Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, posted Dhs228bn in revenues and Dhs25bn in net profit for the year ending December 31, 2019, it announced on May 20.

ICD’s net profit grew 16.9 per cent from the prior year, including significant contribution from banking and financial services as well as transportation. However, these increases were offset by lower contributions from oil and gas and aluminium production.

Banking and financial services’ results profited from a Dhs4.4bn gain on the partial disposal of Network International Holdings and the fair value measurement of its remaining stake.

However, 2019 revenues totaled Dhs228bn, down 1.9 per cent, with a drop in oil and gas earnings and a marginally lower transportation income offset by higher income in banking and financial services and in others segments.

Banking and financial services include DenizBank, Emirates NBD’s new acquisition.

Meanwhile, ICD’s assets grew to Dhs1.12 trillion, rising 27.5 per cent from year-end 2018, while its liabilities reached Dhs869.7bn, scaling 35.6 per cent, both primarily driven by the acquisition of DenizBank, continued business growth and the implementation of new IFRS 16 – Lease accounting rules.

The group’s share of equity increased 3.5 per cent to Dhs204.6bn from the prior year, despite an Dhs9.7bn one-time adjustment relating to the adoption of IFRS 16.

Mohammed Ibrahim Al Shaibani, executive director and CEO, Investment Corporation of Dubai said: “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. The diversification of our activities and their resilience in volatile markets are two significant contributing factors when it comes to delivering consistent performance year-on-year.

“Moreover, the record asset level reached by ICD, well in excess of the Dhs 1 trillion mark, reflects the continued growth achieved by our key businesses over time and the scale of their operations. 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. We remain confident that ICD’s businesses can deliver sustainable returns over the long term for the prosperity of Dubai.”