The Investment Corporation of Dubai (ICD) posted a record net profit of 60.8 billion UAE dirhams ($16.55 billion) for the financial year ended 31 December 2023, almost double of the AED 36.1 billion reported in 2022. The net profit attributable to the equity holder was AED 50.3 billion, up 69% over the previous year.

ICD, which is the principal investment arm of the Government of Dubai, posted revenues of AED 310.2 billion, indicating a 16% year-on-year growth due to significantly higher passenger traffic in transportation as well as the asset growth and higher interest rates in banking and financial services.

Even as oil and gas revenues declined last year, with global oil prices retreating from their 2022 peak, ICD’s overall revenues grew faster than operational costs, which boosted its margins.

The group’s net profit, which grew 68% over the previous year, saw the transportation sector report an increase of AED 24.6 billion or 119%, while the banking and financial services sector posted a 69% uptick.

Assets reached AED 1.32 trillion, up 12% or AED 145.3 billion, and liabilities AED 1.01 trillion, up 11%, which ICD said was primarily pushed by the 16% asset growth in banking. Non-banking operations grew their assets up by 5% whilst reducing their indebtedness.

The group’s share of equity increased by AED 21.4 billion, rising to AED 237.9 billion.

“The strong regional economic momentum and increased competitiveness of our businesses created an effect of scale resulting in higher margins and performance of our portfolio companies operating in the Transportation, Banking and Financial Services, and Other segments,” said Mohammed Ibrahim Al Shaibani, Managing Director of ICD.

(Writing by Bindu Rai, editing by Seban Scaria)