The Investment Corporation of Dubai (ICD), the emirate's sovereign wealth fund with strategic holdings that include Emirates airline, Emirates Global Aluminium and lender Emirates NBD, posted a 21.4 per cent decline in full-year net profit for 2016, as the transport sector took a hit and the fund benefited in 2015 from a one-off gain from the sale of aviation services company Standard Aero.
Net profit for equity holders in the 12 months ending December 31 reached Dh17.99 billion compared with Dh20.89bn in 2015, the fund said in a statement on Nasdaq Dubai. Revenue dipped 0.5 per cent to Dh176.31bn from Dh177.14bn in 2015.
ICD attributed the net profit plunge to "increased competitive pressure on yields" in its transportation segment and to a 2015 gain from discontinued operations following the sale of Standard Aero, a unit of Dubai Aerospace Enterprise (DAE), an aircraft leasing and maintenance company in which ICD has an 80.53 per cent stake. DAE sold Standard Aero to an affiliate of private equity firm Veritas Capital for Dh5bn, booking a gain of Dh2.07bn, according to ICD's financial statements.
Profit at Emirates airline in the financial year ending March 31 fell by 82.5 per cent year-on-year to Dh1.25bn as the airline industry suffered from rising capacity, lower demand because of terrorism fears and a slowdown in oil-based economies. Low-cost carrier flydubai, also owned by ICD, reported a 69 per cent decline in its earnings in 2016 because of the challenging operating environment
"In 2016, the portfolio of ICD demonstrated resilience by delivering a strong operational and financial performance despite challenging market conditions," said Mohammed Al Shaibani, executive director and chief executive of ICD, according to the news agency Wam. "ICD remains focused on expanding its capabilities and investing in opportunities that will support long-term growth and enhance the prosperity of Dubai."
Nearly 55 per cent of ICD's total revenue came from transportation and related services last year, followed by oil and gas products and services with 25 per cent.
The biggest drop in revenue came from oil and gas products and services, which declined 11 per cent to Dh44.20bn from Dh49.66bn. Holdings in the energy and industrial segment of its portfolio are in diversified energy company Enoc, cable manufacturer Ducab and Emirates Global Aluminium.
ICD also has stakes in Nasdaq Dubai and Dubai Islamic Bank, the emirate's largest Sharia-compliant lender.
Total assets grew 6.9 per cent to Dh769.9bn from Dh720.08bn in 2015.
Transportation makes up about 18.2 per cent of ICD's portfolio, finance and investments accounts for 33.4 per cent, energy and industrial investments take up 17.4 per cent, real estate and construction 16 per cent, hospitality and leisure 12.3 per cent, while retail and hospitality represent 2.7 per cent, according to the fund's website.
Other sovereign wealth funds, including International Petroleum Investment Company (Ipic) and Mubadala Development Company, which have since merged into the US$125 billion Mubadala Investment Company, swung to profit last year as their investment policies paid off.
Ipic was back in the black last year despite weaker oil prices, as margins improved and its asset impairment charges declined.
In its last annual report as a separate company, Ipic said total profit from continuing operations was just over US$400 million, versus a loss of $2.6bn the previous year.
In its last annual report, Mubadala Development said its diverse capital section accounted most for the improvement in profit, posting a 64 per cent increase to Dh3.9bn.
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Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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Engine: Four electric motors, one at each wheel
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KILLING OF QASSEM SULEIMANI
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ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
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PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.