Dubai: Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, on Wednesday reported a net profit of Dh25 billion for 2019, up 16.9 per cent compared to 2018.
The consolidated results for the year ended December 31, 2019 posted a net revenue of Dh228 billion down by 1.9 per cent, with a drop in oil and gas revenues and a marginally lower transportation income offset by higher income in banking and financial services and in the others segment.
Banking and financial services include DenizBankA.Ş., EmiratesNBD’s new acquisition.
Net Profit growth of 16.9 per cent included a record contribution from banking and financial services and a strong performance from transportation.
“In 2019, ICD produced a very solid performance given the considerable challenges faced by the global economy and the effect that these have had on our businesses. The diversification of our activities and their resilience in volatile markets are two significant contributing factors when it comes to delivering consistent performance year-on-year,” said Mohammed Ibrahim Al Shaibani, Executive Director and CEO, Investment Corporation of Dubai.
Banking and financial services results benefited from a Dh4.4 billion gain on the partial disposal of Network International Holdings Plc and the fair value measurement of its remaining stake.
At the yearend 2019, net Profit attributable to the equity holder of ICD was Dh18 billion, an increase of 10.7 per cent compared to the prior year period.
Assets increased to a record Dh1.12 trillion, rising 27.5 per cent from the year-end 2018, whilst liabilities reached D 869.7 billion, rising 35.6 per cent, both mainly driven by the acquisition of DenizBankA.Ş., the continued business growth has well as the implementation of new IFRS 16 - Lease accounting rules.
ICD’s portfolio comprises some of Dubai’s most recognized 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 construction, hospitality and leisure, retail, and other holdings.