The Investment Corporation of Dubai, the principal investment arm of the emirate’s government, reported a fivefold surge in its 2022 net profit as revenue rose by a record 58 per cent on the back of an improved performance by all of its business units.
Total net profit for the full year climbed to Dh29.77 billion ($8.1 billion) last year, compared with Dh5.48 billion in 2021, ICD said in a regulatory filing to Nasdaq Dubai on Tuesday.
Revenue also reached a record Dh267.4 billion ($72.7 billion), up from Dh169.44 billion on the year prior, on the back of a surge in travel, tourism activities, and higher oil and gas revenues.
Overall, revenues grew faster than operational costs, boosting margins, the company said.
The results were also driven by the strong performance of its transportation, real estate, banking and financial services segments as well as record earnings from aluminium production.
“With the strong momentum in the Dubai economy, the ICD Group was able to further deploy its operational capacity in an agile manner and benefited both from a scale effect and a strong discipline on costs, producing its best ever performance,” said ICD managing director Mohammed Al Shaibani.
Assets grew 6.9 per cent reaching a record Dh1.17 trillion, supported by the much higher level of activity overall.
Liabilities increased to Dh908.1 billion, while borrowings and lease liabilities declined 9 per cent.
The group’s share of equity increased by 13.6 per cent to a new record of Dh216.5 billion.
"The group’s balance-sheet ended the year in a very favourable position, with improved asset quality, liquidity and leverage and a record equity base," Mr Al Shaibani said.
"Overall, the group emerges resilient and stronger than ever from a volatile period marked by geopolitical conflicts and rising interest rates , and I am confident that our businesses will carry on building on these strengths to weather the uncertain global economic outlook as well as seize opportunities and conquer new markets.”
Business activity in Dubai's non-oil private sector economy rose to an eight-month high in April, boosted by a sharp rise in sales and new orders as demand growth quickened.
The emirate's seasonally adjusted S&P Global purchasing managers' index reading rose to 56.4 in April, from 55.5 in March, remaining above the neutral 50 mark separating an expansion from a contraction.
“A surge in sales momentum in the travel and tourism and wholesale and retail sectors helped send the Dubai PMI to an eight-month high … signalling a robust improvement in the health of the non-oil economy,” said David Owen, a senior economist at S&P Global Market Intelligence.
Dubai's economy expanded by 4.6 per cent on an annual basis in the first nine months of 2022, with wholesale and retail trade accounting for 24.1 per cent of its gross domestic product, according to data from the emirate's statistics centre.
Emirates NBD estimates Dubai's full-year growth for 2022 at 5 per cent and expects its GDP to expand by 3.5 per cent in 2023.
"Dubai’s non-oil private sector has seen solid growth in the first four months of this year, with the PMI averaging 55.1, compared with 54.2 in the same period last year," the bank said in research note this month.
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Emirates' first flights in October 1985 used leased aircraft. Photo: Emirates -
An Emirates A380 in flight. Photo: Emirates -
Emirates Premium Economy is the airline's newest cabin class. DXB Terminal 3, Dubai. Chris Whiteoak / The National -
Skydiver and stuntwoman Nicole Smith-Ludvik stars in Emirates' latest ad campaign at the top of the Burj Khalifa. Emirates -
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Ruler of Dubai, takes a tour of the Emirates A380 airliner during the opening ceremony at Dubai Airshow in November 2013. AFP -
Airbus workers celebrate in front of the Airbus A380 on July 28, 2008 in Hamburg, Germany. The world's largest passenger liner was built for Emirates airline. Getty Images -
Terminal 3, the exclusive terminal for Emirates airline, was opened in 2008. Photo: Emirates -
Emirates chairman, Sheikh Ahmed bin Saeed Al Maktoum, in November 2001, with a model of the Airbus A3XX superjumbo jet (now known as the A380) at the Farnborough Air Show. Reuters
ICD owns Emirates, which swung to a record annual profit on strong travel demand as governments reopened international borders and lifted pandemic-related restrictions.
The airline posted a Dh10.6 billion profit ($2.8 billion) in the fiscal year that ended on March 31, compared with a Dh3.9 billion loss in the previous year.
ICD's portfolio also includes Emirates NBD, Commercial Bank of Dubai, Dubai Islamic Bank and National Bonds Corporation, Enoc, dnata, flydubai and DAE, among others.
