DIFC Investments swings to profit

Tuesday, May 01, 2012

Dubai DIFC Investments (DIFCI), the investment arm of Dubai International Financial Centre (DIFC), yesterday reported a net profit of $130.54 million for 2011 compared with a net loss of $272 million in 2010.

“Despite the impact of the European debt crisis, the global economic downturn and the regional changes witnessed in 2011, DIFC has continued to improve its financial performance by focusing on its core business, reducing costs and optimising operations efficiency,” said DIFCI’s chairman Abdullah Mohammad Saleh.

The company generated an operating profit of $189 million compared to a $286 million loss in 2010 and its rental income increased by 1.8 per cent.

Last year the financial free zone reported a 7 per cent increase in the number of registered companies due to a reduction in the cost of doing business.

The DIFCI chairman said yesterday that it is committed to the repayment of its $1.2 billion sukuk, which matures next month and continues to work closely with all relevant stakeholders in order to meet its commitment.

“This repayment is based on DIFCI achieving continued sustainable revenue streams, reaching agreement on the deferment of certain debts due to the government of Dubai, continued support from the government of Dubai and expected future cash flows based on the utilisation and disposal of its assets and liabilities,” Saleh said.

DIFCI owes the government around $1 billion through two loans, of which the repayment has been extended.

Bankers close to the talks confirmed yesterday that DIFCI is close to a refinancing deal with a group of bankers.

By Babu Das Augustine?Deputy Business Editor