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Investment Corp. of Dubai (ICD) saw a return to form for all of its major assets during 2021. The final numbers tell the story. Image Credit: Bloomberg

Dubai: The Dubai owned wealth fund ICD made a significant turnaround in net profits during 2021, totaling Dh10.1 billion on revenues of Dh169.4 billion. ICD (Investment Corporation of Dubai) lists entities such as Emirates Group and mega-developer Ithra Dubai among its holdings. For 2020, it had losses of Dh15.5 billion. 

The return to profits for 2022 reflects ‘improvements across all segments, helped primarily by revenue growth, rigorous cost discipline, and lower impairments in the banking, real estate, and hospitality sectors,’ ICD said in a statement. ‘Aluminium production operations also contributed materially to these results.”

The shareholder, Dubai, will receive Dh5.5 billion from the net profit.

A solid base for 2021 revenues
ICD's revenues for 2021 totalled Dh169.4 billion, up 24.5 per cent from a year before. It was driven primarily by 'rallying commodities prices in oil and gas, higher levels of activity in transportation, and strong momentum in other segments as global travel restrictions gradually eased. Expo 2020 Dubai also acted as a catalyst for the recovery...'

“Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness,” said Mohammed Ibrahim Al Shaibani, Managing Director, Investment Corporation of Dubai. “The proactive measures taken by the UAE government and the leadership of Dubai to manage the effects of the pandemic contributed meaningfully to Dubai’s strong economic rebound and in making Dubai an even more attractive place to live and work.

"Our balance-sheet stayed resilient despite the significant volatility of the global economy. We are proud to see the progress made by our organisation in terms of recovery.

"Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness. The proactive measures taken by the UAE government and the leadership of Dubai to manage the effects of the pandemic contributed meaningfully to Dubai’s strong economic rebound and in making Dubai an even more attractive place to live and work."

A Dh1t balance-sheet
ICD’s balance-sheet remained above the Dh1 trillion, with assets and liabilities down 1 per cent, respectively, to Dh1.1 trillion and Dh862.7 billion. This was primarily because of lower bank balances offsetting the growth of non-banking operational balances, and a ‘cautious approach to capex deployment’.