UAE's GGICO to focus on business continuity as losses hit $459mln

Accumulated losses represent more than 94% of share capital

  
A general view shows the Dubai Financial Market after Joe Biden wins U.S. presidency, in Dubai, United Arab Emirates November 8, 2020.

A general view shows the Dubai Financial Market after Joe Biden wins U.S. presidency, in Dubai, United Arab Emirates November 8, 2020.

REUTERS/Christopher Pike

Dubai-listed Gulf General Investments Company (GGICO) is looking into business continuity, as accumulated losses hit 1.687 billion dirhams ($459 million) during the first three months of the year. 

In a bourse filing to the Dubai Financial Market (DFM), the company with investments in property, manufacturing, hospitality, retail and financial services sectors, said the losses incurred were a result of impairment of assets due to the “challenging market situation” in the country. 

“The board of directors is discussing the continuity of the company,” stated the filing published on Sunday. 

The company had been incurring net losses prior to the coronavirus pandemic. Last year, it was looking for measures to settle some of its debts against bank guarantees. 

The current losses represent 94.19 percent of the company’s share capital. 

“The board of directors has taken several measures such as to reschedule all its debts with banks, get rid of some non-profit investments on the company and some non-profitable companies [and] focus on profit-making investments,” the latest statement said. 

(Reporting by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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