Business | Investment
Dubai Investments profit increases 52% to Dh1.5b
Dubai Investments, a holding company for a range of businesses from construction to dairy, said on Tuesday its net profit increased by 52 per cent to Dh1.5 billion in 2007 on the back of strong property sales and return on equity investments.
- By Shakir HusainStaff Reporter
- Published: 23:39 January 29, 2008
Dubai: Dubai Investments, a holding company for a range of businesses from construction to dairy, said on Tuesday its net profit increased by 52 per cent to Dh1.5 billion in 2007 on the back of strong property sales and return on equity investments.
The company said revenues were Dh3.7 billion last year compared with Dh2 billion in the previous year.
Net profit surged to Dh1.5 billion from Dh989 million a year before, the company said in statement posted on the Dubai Financial Market website.
Chief executive Khalid Bin Kalban told Gulf News "all units across the group performed very well" with the property, industrial and financial businesses providing good returns.
"We are benefiting from the construction boom. Sales of construction materials were strong and we made good money in real estate sales because of price appreciation," he said.
Dubai Investments Financial Services Company, a subsidiary that invests in equities and has a portfolio of Dh3 billion, benefited from stock market gains last year.
"Stock investments both locally and regionally did well last year, especially in the fourth quarter," Bin Kalban added.
Dubai Investments is awaiting the Ministry of Economy's nod for turning its financial service unit into a private joint stock company. It has received the UAE Central Bank's approval for the move.
The group is also raising its capital through a new tranche of Dh860 million.
"We will be collecting that by April," Bin Kalban told Gulf News recently. The company's capital at present is Dh2.17 billion.
Share of Dubai Investments ended 7.5 per cent higher on Tuesday.
Dubai Investments has about 40 units in its portfolio and is engaged in activities such as glass making, steel fabrication, dairy products and real estate developments.
New plans: IPO for Subsidiary
M'Sharie Company, a private equity subsidiary of Dubai Investments, plans to sell 30 per cent in a precursor to an eventual initial public offering (IPO).
"We are selling 30 per cent of M'Sharie to outside investors. We believe the value of M'Sharie at this point of time is Dh1.6 billion. We are negotiating with potential partners," Dubai Investments chief executive officer Khalid Bin Kalban said.
He said the company would consider up selling up to 40 per cent if there was strong investor interest and it was looking gives stakes to up to 10 investors.
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