Dubai: The Investment Corp. of Dubai, the holding firm of the emirate, reported a loss in the first-half as the coronavirus pandemic weighed on earnings at its portfolio companies. The firm posted a loss of Dh11.4 billion ($3.1 billion) after a profit of Dh6.86 a year earlier, according to a statement.
Investment Corp. of Dubai owns Emirates airline, which had seen bookings slump as demand for travel cratered. It also has holdings in banks, including Emirates NBD and Dubai Islamic Bank, as well as in Emaar Properties.
Dh73.7billionICD's revenues for the first-half, which is a 31 per cent decline compared to a year ago period,
Meanwhile, in a statement, Mohammed Ibrahim Al Shaibani, Managing Director of Investment Corporation of Dubai, said: “The COVID-19 crisis has had a severe impact on our key businesses. The drop in revenues was sudden and of a magnitude unseen before.
"However, all our portfolio companies actively engaged in significant efforts to reduce costs, preserve liquidity and adapt operations. Our shareholder and government authorities also showed strong support and took decisive steps to help businesses throughout the crisis and certain of our key businesses benefited from this.
"As the crisis abates, we look forward to the re-opening of the global economy, confident that our companies will seize opportunities and bounce back, having preserved their competitive edge despite this unprecedented ordeal.”
But these were offset by a "resilient" profit contribution from banking and financial services.