Emirates Post reports 30% profit increase in 2008

Dubai: Emirates Post group announced a 30 per cent increase in net profits for last year. According to preliminary results, in 2008 the group's net profit rose to Dh247 million.

Emirates Post, the federal postal services provider, has said it will increase the number of post offices to 113 by the end of the year, and upgrade existing facilities to cope with increased demand.

"The increased revenues are indications that the postal business is buoyant, as witnessed in the rising volumes of postal items. This gives us confidence that the coming years will see us achieving all the goals we have set," said Abdullah Al Daboos, president of Emirates Post Holding Group.

The postal service provided by Emirates Post, a key subsidiary of the group, recorded an increase of 17 per cent in volume of items such as letters and parcels, a total of more than 305 million.

The group also holds a 60 per cent stake in the Wall Street Exchange Centre, a currency exchange and money order service provider, which opened 10 new branches last year, and contributes to the group's revenues through foreign exchange and remittances for foreign workers.

With rising demand for postal and courier services, Emirates Post Group benefits from its monopoly in the sector. At the same time, the group has proved adept at tapping into the potential to develop new revenue streams through diversification of its service offerings.

According to a report last year by management consultancy Oliver Wyman on the Middle East postal market, "the UAE's postal system is by far the most diversified, offering retail and government services that include global money transfer, labour and emigration assistance, utilities bill payment, driving license issuance, and airline ticket sales in partnership with Air Arabia. UAE Post has also announced plans to establish a holding company and to compete in the global logistics industry.

In 2009, there will be a new Postal Exchange Centre, the first integrated postal exchange services in the Middle East.