The managing director of Dubai Duty Free has scotched rumours the company is preparing a floatation and said instead it would continue to plough profits into infrastructure projects in the emirate.
Colm McLoughlin said the company had approached bankers about a market valuation, but a stock market listing had never been seriously considered. Talk of the valuation in the market had sparked rumours that Dubai Duty Free was considering an imminent stock market flotation.
"We have heard [a listing] spoken about, we got a sum done on what we would be worth, but only to have a number in the back of our heads. It's not been up for serious debate," Mr McLoughlin said.
He said the company invested its profits in projects throughout Dubai, such as building and sponsoring the Dubai Duty Free Tennis arena and developing the Jumeirah Creekside Hotel.
If the company floated shares, it would have to pay dividends, which would mean less money directly spent in the emirate.
"Any decisions about going public would really be a government decision," Mr McLoughlin said. "The reason is that [Dubai Duty Free] is successful on its own. It helps fund the development of the airport here, we are important for the economy in Dubai."
The company reported a 13 per cent increase in sales to US$343 million (Dh1.25 billion) in the first three months of this year over the same period last year, on high demand for gold, liquor and perfumes.
It has been the leading duty-free retailer in the world based on total sales for two consecutive years, just above London's Heathrow Airport and Seoul's Incheon International Airport.
"The traffic through the airport is increasing all the time, we are selling a little bit more to each person we sell to," Mr McLoughlin said.
He put the increase down to the number of promotions and marketing campaigns the company has launched since January.
Passenger traffic numbers for the first two months of this year are up 7 per cent at Dubai Airport, Mr McLoughlin said. The airport had 47 million passengers last year and this is expected to grow to 52 million this year.
Perfume sales were $48m in the first quarter this year, a 16 per cent increase over the same period last year, and gold sales increased by 13 per cent to $38m.
Passengers leaving Dubai make up the largest portion of sales, with those arriving contributing just 7 per cent.
Mr McLoughlin said the retailer sold to 50 per cent of departing passengers, higher than the average for the travel retail industry.
The company's growth in the first three months of this year is in line with a full-year target of more than 10 per cent growth on last year.
Dubai Duty Free processed 60,000 transactions a day on average last year and employs 4,000 people in the UAE.
