Dubai Investments posts 17% rise in third-quarter profit

Dubai Investments owns about 35 subsidiaries and joint ventures in a variety of sectors including manufacturing, property development and information technology.

Dubai Investments sold its 66 per cent stake in pharmaceutical company Globalpharma for Dh385 million in the second quarter. Above, the Globalpharma plant in the UAE. Courtesy Globalpharma

Dubai Investments (DI) said third-quarter profit rose 17 per cent to Dh189 million as rental income grew.

Nine-month net income advanced 87 per cent to Dh995m compared to the same period a year earlier, the company said in a stock exchange filing.

The investment company’s total revenues rose to Dh2.4 billion from Dh1.9bn, while its total assets on September 30 stood at Dh14.25bn after the sale of a 66 per cent stake in the pharmaceutical company Globalpharma for Dh385m to France’s Sanofi in the second quarter.

“We are witnessing optimistic sentiments across various sectors of the economy, which places us in a good position to capitalise on the available opportunities in line with our growth strategy,” said Khalid bin Kalban, the managing director and chief executive of Dubai Investments. “DI has ramped up its liquidity following strong operating results, and this will enable us to take advantage of opportunities in the market.”

DI owns about 35 subsidiaries and joint ventures in a variety of sectors including manufacturing, property development and information technology. Strong demand for commercial and industrial space in the emirate has helped drive returns from its business park unit while rebounding construction industry demand has also helped its building materials and glass making operations.

The company’s investments in the UAE almost doubled to Dh854m in the nine months to September, while in other GCC countries it jumped to Dh402m from Dh272m. DI’s investments in other countries increased the most to Dh875m from Dh330m, a growth of 165 per cent.

The firm expects its credit rating to be increased to BBB by the end of the year. Its Dubai Investments Park Development Company unit, which raised US$300m from an Islamic bond in February, holds a BB+ grade from Standard & Poor’s.

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