Investment Corporation of Dubai (ICD), the main investment arm of the Dubai government, nearly doubled its net profit during the first half of the year as the local economy continued its growth momentum.

The company reported on Thursday a net profit of 28.3 billion dirhams ($7.7 billion), up by 91% from a year earlier. The record earnings were propped up by strong revenues in key business segments that have benefited from the expansion in travel and tourism, as well as high interest rates and strong lending.

Total revenues reached AED145.1 billion, up by 20%, said the company, whose portfolio includes various free zones, as well as top brands such as Emaar, Emirates, dnata, flydubai and Emirates NBD, among many others.

“[The growth in revenues was] due to 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.

“Overall, revenues increased faster than operational costs, boosting margins.”

Assets grew 6.5% to approximately AED1.3 trillion, primarily driven by the expansion in banking assets.

Liabilities rose to AED974.5 billion on much higher banking customer deposits, while non-banking borrowings and lease liabilities fell by 5.7%. The group’s share of equity went up by 4.2% to AED225.7 billion.

“The Group clearly benefited from the strong economic momentum the emirate is experiencing,” said Mohammed Ibrahim Al Shaibani, Managing Director, ICD.

The Dubai economy grew by 3.6% to AED223.8 billion in the first half of the year, driven by strong growth in transportation, wholesale and retail trade, financial and insurance, accommodation and food services, real estate, information and communication and manufacturing.

(Writing by Cleofe Maceda; editing by Brinda Darasha)