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Eye of Dubai
Business & Money | Monday 1 August, 2016 12:05 pm |
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Dubai Investments reports AED 516 million net profit in the first half of 2016

Dubai Investments PJSC [DFM: DIC], the leading, diversified investment company listed on the Dubai Financial Market, has published its financial results for the period ended 30 June 2016. 

 

Dubai Investments reported a strong first half of 2016 with net profit attributable to shareholders of AED 516 million, which is 2% higher than the AED 506 million generated in the prior-year period. Total income was AED 1.37 billion, which represents an 18% increase compared to the AED 1.16 billion total income generated in the first half of 2015. 

 

The positive result includes 20% growth in rental income to AED 424 million, an 8% increase in contract revenues to AED 236 million, a AED 186 million gain related to disposal of subsidiaries and valuation gains of AED 86 million on investment properties, whilst sale of goods declined marginally to AED 450 million. Mark-to-market investments offset the result by AED 27 million. In the first six months of 2016, earnings per share increased to AED 0.13 from AED 0.12 last year. 

 

Total assets were AED 15.7 billion at 30 June 2016, up AED 446 million since the beginning of the year. This includes a healthy cash balance of AED 1.1 billion, after the dividend pay-out of AED 486 million in May 2016. Total liabilities increased by AED 346 million since the beginning of the year to AED 4.4 billion as at 30 June 2016 mainly due to increase in stake of Properties Investments. Dubai Investments maintained a low debt to equity ratio of 25.9%. The book value per share increased by 5.4% to AED 2.64 as at 30 June 2016, compared to AED 2.50 at 30 June 2015.

 

In his comments, Khalid Bin Kalban, Managing Director and CEO of Dubai Investments PJSC, said: “Dubai Investments delivered a solid set of financial results, completed a number of important transactions and is in a strong position to deploy capital into attractive investment opportunities to drive future growth.” 

 

Kalban added: “Building on the positive momentum generated in the first half of 2016 against the backdrop of a challenging market environment, the Company plans to continue its diversification strategy, aimed at broadening its geographical footprint, growing its asset base to increase earnings and creating value for the shareholders.”

 

Dubai Investments currently owns over 40 subsidiaries and joint ventures across a broad range of sectors and continues to monitor opportunities, both locally and internationally, as part of its strategic, financial and operational roadmap.

 

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Dubai Investments – key highlights in first half of 2016

 

Dubai Investments continued to build on its leadership with strategic investments across its portfolio in the first six months of 2016.  During the period, the Company prioritized its businesses in specific growth sectors to drive profitable growth. Dubai Investments targeted new opportunities, with a strong focus on increasing its asset base, strengthening bottom line and improving operational efficiency. Some of the highlights include:

 

Real Estate and Property Management

  • Dubai Investments acquired additional 20% stake in its joint venture entity Properties Investment LLC, increasing its shareholding to 70%.

 

  • 100 new companies have leased premises within Dubai Investments Park in the last one year, increasing the total number of tenants to 4,600. 

 

  • Dubai Investments formed a new entity Palisades Development Company LLC, mandated with marketing, managing, leasing, buying and selling of land in The Palisades – a residential project within Dubai Investments Park. 

 

Manufacturing:

  • Dubai Investments entered into a JV with DUBAL Holding and Singapore-based MARS for a new aluminum rolling plant at a cost of AED 440 million in Khalifa Industrial Zone Abu Dhabi.

 

  • The Company formed a joint venture with Abu Dhabi National Company for Building Materials PSC for setting up a steel plant in Musaffah, Abu Dhabi worth AED 250 million.

 

  • Dubai Investments glass companies continue to win contracts across the globe. Emirates Glass won iconic projects in Pakistan, while Emirates Insolaire is supplying 12,000 colored solar glass panels for a school in Denmark to create one of the largest photovoltaic buildings in the world.

 

  • Masharie subsidiary Emirates Extrusion Factory is commissioning its third extrusion line to increase production capacity by 6,000 metric tonnes per annum and a new powder coating plant with a capacity of 5,500-6,000 metric tonnes. White Aluminium Extrusion is commissioning an anodizing plant of nearly 4,800 metric tonnes per annum.

 

Financial Investments: 

  • Dubai Investments plans to launch two Funds in partnership with its subsidiary Al Mal Capital. The Funds would target the healthcare and education sectors and will be sized around AED 1 billion each.

 

Diversification

  • As part of its diversification, Dubai Investments is targeting healthcare & education sectors. The company owns 90% stake in Austria-based MODUL University’s first campus in Dubai, which opens in September 2016. Dubai Investments has invested 26.75% of total equity financing for London’s King’s College Hospital in Dubai, which opens in 2018, with plans to open a number of clinics in 2016 and 2017.

 

Awards

  • Dubai Investments won the Financial Services Deal of the Year award, conferred by UK-based Acquisition International.

 

  • Dubai Investments glass subsidiary Emirates Float Glass was conferred the Emirates Appreciation for Environment award by UAE Ministry of Environment and Water.
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