Dubai: Dubai Holding said on Thursday it estimates 2015 net profit at Dh5.5 billion with a total assets of Dh130 billion, even as it expects the UAE economy to maintain its stability despite the global economic turmoil with a 5 per cent growth this year.
The investment company’s successes have been largely due to its resilience and diversity. The group with total assets exceeding Dh130 billion, follows a long-term strategy that is closely aligned with Dubai’s overall outlook and strategy, it said in a statement on Thursday.
Dubai Holding also affirmed that the company is committed to fulfilling its financial obligations, the last of which is a £500 million (Dh2.78 billion) loan that matures by January 2017.
“The UAE will enjoy sustainable growth [in 2016], supported by the healthy performance of diverse economic sectors,” Ahmad Bin Byat, Vice-Chairman and Managing Director of Dubai Holding said in a statement.
Dubai Holding’s business is closely aligned with Dubai’s economic model, which is based on a strong services sector. As part of this model, the group said it has substantial international investments in the hospitality sector, which includes hotels in 10 countries. The group currently employs 22,000 people. Dubaisubstantially increased its share of global tourism in recent years with 13 million tourists in 2014. The city is ranked the fourth most popular tourist destination in the world in terms of tourists-per-resident.
Revenue streams:
About 60 per cent of Dubai Holding’s revenue comes from recurring revenue streams. The group’s investment portfolio features a diverse range of assets that includes 11 freezone complexes like Dubai Internet City and Dubai Design District, which together host 72,000 employees and directly contributes to Dubai’s economy by attracting investments from a range of international companies. The assets also include 25,000 leased residential units, the firm said.
About its investments, Bin Byat said that Dubai Holding’s international investments stretch across six countries, including Tunisia, Morocco, Egypt, Malta, India and Greece.
Speaking about Dubai Holding’s investments in Arab Spring countries, he said the group has invested in Tunisia’s telecommunication and real estate sectors. With the return of political stability, the group hopes to resume its investments in the country, which it considers a promising market.
Bin Byat said Dubai Holding’s investments in India are progressing according to plans, while in Malta, the group has partnered with the government to build a Smart City similar to Dubai Internet City.
