Dubai’s JAFZA Posts 20% Drop In H1 Profit

Dubai state-owned industrial hub Jebel Ali Free Zone (JAFZA) said profit for the first half of the year fell 20 per cent as higher financing costs more than offset a rise in revenue.

The company, which completed a three-pronged financing package to repay a $2 billion-equivalent Islamic bond earlier this year, made a profit of Dhs212 million ($57.72 million), down from Dhs265 million in the same period last year.

Revenues rose to Dhs712 million in the first half of 2012 from Dhs662 million in the first half of 2012, company financial statements showed.

The company, which runs an industrial free zone on the outskirts of Dubai, incurred net financing costs of Dhs243.8 million for the first half, an increase of 40 per cent from the same period last year when such costs were Dhs173.5 million.

In June, JAFZA, a unit of state conglomerate Dubai World , repaid the Dhs7.5 billion sukuk ahead of maturity after it secured refinancing through a $1.2 billion sharia-compliant loan, along with a new $650 million sukuk and internal resources.