Dubai: Dubai Investments plans to acquire a new land bank in the UAE to build a multi-purpose investment park along the lines of what it has in Dubai. The new land could even be in Dubai itself, according to Khalid Bin Kalban, Managing Director and CEO.
“This is definitely in the plans, and the only question is when to execute the purchase,” he added, after the company’s annual general body meeting late on Wednesday. “There is nothing to suggest we cannot have a second one in Dubai — hopefully, we can make that announcement soon.”
There has been speculation about the company making a move for a big land acquisition. In this regard, there has been talk about something in and around the Jebel Ali area.
Its current base at Dubai Investments Park — all of 2,300 hectares — is more than 90 per cent used up, which has accelerated the need to start building a new one and generate an additional revenue stream.
Currently, the company is building a smaller investment park — at around 10 hectares — in Fujairah, which is 40 per cent ready. Teams are being assembled to handle leasing operations ahead of the opening some time next year. (Meanwhile, additional land is being acquired in Furjairah to add some entertainment features adjoining the investment park.) As for its plans to set up an investment park in Saudi Arabia, the CEO said it was moving slowly and proving a bit of a struggle.
Dubai Investments on Wednesday confirmed a 10 per cent dividend, totalling Dh425 million.
“This is 7.5 per cent over the market price and I feel that’s a generous payout,” said Bin Kalban. (The share closed at Dh1.6 from a gain of 1.2 per cent on Wednesday.) For 2018, the company reported a net profit of Dh651.4 million, a drop from the Dh1 billion plus a year ago. But there was better tidings on the asset side, with the total increasing by Dh2.55 billion to Dh19.6 billion.
Dubai Investments’ property business accounted for 63 per cent of total assets and contributed 38 per cent to total income in 2018, while manufacturing, contracting and services accounted for 24 per cent of total assets and 55 per cent to income. Investments accounted for 13 per cent of assets.
Its financial services subsidiary Al Mal is setting up a mixed-use real estate investment trust (REIT), which will be listed on the financial market during the second quarter of 2019.