Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, announced on Thursday a 4.4 per cent surge in its first-half net profit.
While the net profit of the wealth fund rose to Dh10.5 billion, its revenues reached Dh106.3 billion, a 7.7 per cent decrease compared to the prior year period, resulting primarily from lower oil prices.
"During the first six months of 2019, although not immune to the global growth slowdown and the volatility of key commodities, the ICD Group produced a solid performance showing the resilience of its activities," said Mohammed Ibrahim Al Shaibani, executive director and CEO of ICD.
Al Shaibani said the diversification of its operations and the focus on improving further efficiencies and growing ICD core businesses helped weather challenging market conditions as ICD continues on its journey towards the realisation of its long-term goals for the prosperity of Dubai.
The wealth fund said in a statement that the net profit growth from the comparable prior year period was driven by the higher performance of the banking and financial services and transportation segments
"These increases were partially offset by lower profits in oil and gas and aluminium production. Banking and financial services results were benefited by a Dh2.1 billion gain related to the IPO of Network International Holdings," said the investment firm.
Net profit attributable to the equity holder of ICD was Dh6.9 billion, a decrease of 8.3 per cent compared to the prior year period.
Assets increased to a record Dh971.1 billion, rising 10.4 per cent from the year end 2018, while liabilities reached Dh739.3 billion, rising 15.3 per cent, said the statement.
"These increases were driven by the adoption of IFRS 16 new lease accounting rules, which added Dh58.5 billion of assets and Dh68.2 billion of liabilities and by continued business growth," it said.
The group's share of equity declined by 3.7 per cent to Dh190.4 billion from year end 2018, driven primarily by a Dh9.7 billion one-time adjustment relating to the adoption of IFRS 16.
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