Dubai

Investment Corporation of Dubai (ICD) said on Thursday its portfolio witnessed a growth of 6.9 per cent to Dh769.9 billion in 2016.

The growth was a result of an increase in loans and receivables in the banking and financial services segment and aircraft fleet upgrades in the transportation services segment, the investment arm of government of Dubai said in a statement.

The net profit for 2016 fell nearly 20 per cent, while revenues were steady at Dh176.3 billion, a decrease of 0.5 per cent from the prior year.

Net profit, meanwhile, was Dh22.1 billion, down 19.6 per cent from the prior year. Net profit attributable to the equity holder of ICD was Dh18 billion, a decrease of 21.4 per cent from the prior year. The decrease in net profit was primarily driven by the impact of increased competitive pressure on yields in the Transportation Services segment and the comparison with a prior year gain on Discontinued Operations resulting from the sale of Standard Aero Inc.

“In 2016 the portfolio of ICD demonstrated resilience by delivering a strong operational and financial performance despite challenging market conditions,” Mohammad Ebrahim Al Shaibani, Executive Director and CEO of Investment Corporation of Dubai, said in a statement.

“ICD remains focused on expanding its capabilities and investing in opportunities that will support long-term growth and enhance the prosperity of Dubai,” he added.

Liabilities increased to Dh560.5 billion, rising by 7 per cent from the year-end position in 2015, resulting primarily from higher customer deposits in the Banking and Financial Services segment, ICD stated. The Group’s share of equity increased by 7.2 per cent from the year-end position in 2015, as a result of operating profits, it added.

ICD’s portfolio comprises some of Dubai’s most recognised companies, and represents a cross-section of vital economic sectors that the Government of Dubai has deemed strategic for the continued development and growth of the emirate. The sectors include financial services, transportation, energy and industry, real estate and leisure, retail, and other holdings.