Abu Dhabi: Abu Dhabi Investment House (ADIH) on Monday announced a 93.5 per cent drop in net profit to Dh17 million for 2009 compared to Dh260 million the previous year and its managing director indicated that it would increase provisioning this year. The board approved the distribution of 5 per cent in cash dividend.

A spokesperson contacted by Gulf News did not divulge the exact level of provisioning made in 2009, saying only that "provisions were taken from general investment activities".

Total income for 2009 fell more than 51 per cent to Dh207 million compared to Dh427 million in 2008. Total assets rose by 4 per cent compared to 2008 to Dh1.599 billion while total equity reached Dh911 million, a 4.6 per cent return on capital with Dh0.08 earnings per share. The EPS for 2008 was Dh1.27.

ADIH managing director Rashad Y. Janahi said in a statement: "We are very pleased with the 2009 positive results given the challenging economic environment we currently operate in.

"This success is attributed to ADIH's clear strategy and resilient business model where risks were mitigated given the extensive research and due diligence work conducted throughout. Also, by raising provisioning requirements, we will be better positioned to weather any further turbulence from the economic downturn."

A statement from the company attributed the 2009 results to ADIH's "prudent methods and entry into diversified real economy sectors that haven't been affected by the financial crisis".

The firm intends to continue investing in real economy sectors such as agriculture, oil and gas, energy (solar or hydro), logistics and food processing, the spokesperson told Gulf News.

The person added in an emailed statement: "ADIH plans to invest in financial institutions [setting up of investment and commercial entities or buying into existing operations for expansion] in emerging markets, agri and logistics, education, health care [which has already started] bringing new technology with the expertise of existing international brands."

Chief Executive Fawaz Ali Al Jowder said: "The great results in the light of a strained financial market are testament of the board's strategy to position ADIH as the investment house of choice within the MENASA region.

"We have incorporated the Abu Dhabi 2030 Vision within our strategy to diversify our investment product offering especially in real economy sectors and empowering our human capital."

In 2009, ADIH launched the Al Wataniya Development Fund to develop a commercial office building in the heart of Abu Dhabi's business district. The fund was closed after receiving "significant" interest from investors and the project is currently being implemented.

Wellpharma Holding, ADIH's investment arm in health care and pharmaceutical sectors, launched the Wellpharma Medical Solutions Fund in November 2009.

The fund will invest in the development and operation of a local production facility that will specialise in the manufacture and distribution of high-quality intravenous solutions for medical treatments.