(A correction was made in paragraph 2 to Emirates National Oil Company's name).
Investment Corporation of Dubai (ICD), the sovereign wealth fund which owns the Emirates airline group and stakes in several Dubai banks, has reported a 9.56 percent decline in net profit attributable to its shareholders for the first six months of 2018, falling to 7.47 billion United Arab Emirates dirhams ($2.03 bilion), despite revenue increasing by 23.4 percent year-on-year to 115.1 billion dirhams.
ICD, which also owns Emirates National Oil Company (ENOC), said revenues grew across all of its different business segments, but its oil and gas and transportation divisions witnessed the biggest increases as a result of higher oil prices.
In a press statement that was published announcing its results, ICD said that the company's net profit "benefited from continued strength in Banking and Financial Services, which offset headwinds in Transportation Services due to increased fuel prices and the strength of the US Dollar".
Its Banking and Financial Services arms include the ownership of Islamic lender Noor Bank, as well as a majority stake in Emirates NBD and significant stakes in Dubai Islamic Bank and Commercial Bank of Dubai. The division also owns stakes in HSBC Middle East and Union National Bank, as well as the Borse Dubai business responsible for the emirate's financial markets.
ICD's statement also said that total assets rose by 2.4 percent since the end of 2017 to 858.9 billion UAE dirhams, which it said was largely the result of increases in loans and receivables from its banking and financial services arm. A breakdown of segmental assets in its filed accounts show that 506.6 billion UAE dirhams worth of the company's assets are held in its banking and financial services arm, 190.9 billion UAE dirhams worth are in its transportation arm, 46.8 bilion UAE dirhams are held in its oil and gas business and the remaining 115.5 billion UAE dirhams are spread across ICD's other businesses, which include investments in industrial, construction, real estate, hospitality and other ventures, including Dubai Duty Free.
Net assets were largely flat at 227.4 billion UAE dirhams.
In the press statement announcing the results, Mohammed Ibrahim Al Shaibani, ICD's executive director and CEO, said: “ICD’s financial results in the first half of 2018 reflect the resilience and continued growth of its portfolio companies.
“ICD remains focused on investing in opportunities that will deliver long-term growth and contribute to the prosperity of Dubai.”
ICD also owns stakes in a range of other household Dubai names, including Emaar, Flydubai, National Bonds, Dubai Airport Freezone, Dubai World Trade Centre, the Atlantis The Palm hotel and Dubai Duty Free.
(Writing by Michael Fahy; Editing by Shane McGinley)
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© ZAWYA 2018