DIFCI reports 4% growth in gross operational profit in 2016

Gate Avenue and The Exchange to enhance DIFC property portfolio

Image Credit: Gulf News Archives
Eisa Kazim
Gulf News

Dubai: DIFC Investments (DIFCI) on Sunday reported a 4 per cent increase in its operating profits to $149 million (Dh546.8 million) in 2016, compared to the previous year.

Cash and cash equivalents increased to $345 million, an 11 per cent increase on 2015, and total assets increased to $3.08 billion, a 2 per cent increase on 2015. Fair market value of investment properties rose to $2.55 billion compared to the 2015 figure of $2.49 billion while rental income increased 5 per cent in 2016, to $147 million.

“We continue to deliver stable revenue and growth thanks to our resilient business model and steady rental cash flows in a challenging macroeconomic climate. DIFCI continued to create value and achieve profitable growth, delivering a solid operational and financial performance,” Essa Kazim, the Chairman of DIFC Investments LLC (DIFCI) and Governor of DIFC, said in a statement.

The Dubai International Financial Centre experienced a strong 12 months, with the number of active registered entities increasing to 1,648 entities and 21,611 professionals working in the Centre. This represents growth of 13 per cent and 9 per cent respectively from the prior year.

Occupancy rate was at 98 per cent in 2016. Construction is progressing well on Gate Avenue at DIFC, which will increase the Centre’s portfolio of lifestyle, cultural and entertainment offerings.

Strategic investments

Another development under construction, The Exchange, will offer further opportunity for new firms and growth in the Gate Village. There is already high demand for leases on the 147,000 square foot, Dh180 million development, according to DIFC.

“We continue to focus on building a platform for long-term growth. Strategic investments, such as Gate Avenue at DIFC and The Exchange, which will enhance our urban lifestyle and community offering. Continuous investments such as this will reinforce our strong position in the region and support Dubai’s vision of being a leading global financial centre,” Kazim said.

DIFCI also repurchased 290,000 units of Sukuk certificates which were issued in 2014 and recognised a gain on repurchase of $2.10 million.

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