The Investment Corporation of Dubai, the principal investment arm of the emirate’s government, recorded a nearly 86 per cent annual surge in its first-half profit as revenue grew on the back of strong performance in its transportation and financial services businesses.
Net profit attributable to the group's equity holders for the six months to the end of June climbed to Dh22.5 billion ($6.12 billion), ICD said in a regulatory filing to Nasdaq Dubai on Thursday.
Revenue during the period jumped 20 per cent annually to Dh145.1 billion as a result of the “significant rise in travel and tourism activities reflected in the transportation and other segments and a jump in banking and financial services revenues on higher interest rates and strong lending growth”, the company said.
ICD's portfolio includes Emirates NBD, Commercial Bank of Dubai, Dubai Islamic Bank, National Bonds Corporation, Enoc, Emirates Airline, dnata, flydubai, DAE, Emirates Global Aluminium and Ducab, among others.
Overall, revenue increased faster than operational costs, boosting margins, it added.
Real estate and hospitality activities also recorded a strong performance during the period, while lower commodity prices reduced profitability in oil and gas and aluminium production businesses, the company said.
Total assets reached Dh1.2 trillion by the end of June, up 6.5 per cent compared to the end of December, as total liabilities rose more than 7 per cent to Dh974.5 billion.
Watch: Emirates airline's A380 plane gets a makeover
“The group clearly benefited from the strong economic momentum the emirate is experiencing,” Mohammed Al Shaibani, managing director of the ICD, said.
Dubai's economy, which has been booming on the back of strong trade and tourism, grew by an annual 2.8 per cent to Dh111.3 billion in the first quarter, according to official data released in August.
It is forecast to grow by 3.5 per cent in 2023, after expanding by 4.4 per cent last year, according to Emirates NBD.
The emirate's property market is also booming, along with its retail, hospitality and travel and tourism sectors. Dubai recorded 116,116 new property transactions worth about Dh429.6 billion in the first nine months of 2023, according to data from the Dubai Land Department.
Total transactions surged 33.8 per cent on an annual basis, while values rose more than 36.7 per cent during the period.
“Looking forward, the proven agility of our businesses and the strength of the group’s financial position will help weather the uncertain global economic outlook,” Mr Al Shaibani said.
“We remain confident in the group’s ability to identify new investment opportunities and expand its commercial activities.”
ICD portfolio company Emirates reported a record first-half profit in its current financial year as it ramped up capacity to meet strong international travel demand.
Its profit stood at Dh9.4 billion in the April to September period, up 135 per cent from the same period last year, on a boost in passenger numbers, Emirates said this month.
