Dubai Investments’ profit jumps 40% in second quarter

Dubai Investments reported a 40 per cent increase in second-quarter net profit on the back of investment gains and lower impairments.

Net profit attributable to owners of the company for the three months ending June rose to Dh211.7 million, the company said yesterday in a filing to the Dubai Financial Market, where its shares trade.

Gains on the fair value of investment increased fivefold to Dh51.1m during the period.

“Dubai Investments’ strategy of diversification, coupled with a robust business model, has been instrumental in successfully facing down the challenges raised by the spread of [the] Covid-19 pandemic,” Khalid Bin Kalban, vice chairman and chief executive, said.

Net impairment losses on financial and contract assets, on the other hand, fell by 56 per cent to Dh2.08m while the cost of sales declined by 26.5 per cent to Dh307.4m.

The company said first-half net profit was down 43 per cent to Dh202m due to “a one-off gain on an acquisition transaction in [the] prior period and the impact of Covid-19”.

“The results for the first half of the year are an indication of our resilience in these unprecedented and taxing times,” Mr Bin Kalban said.

“We have been carefully reviewing our cost structure with an eye on optimisation, while continuing with our efforts aimed at sustained longterm growth. The group is focused on being adaptable and flexible in the current environment and is geared up to take advantage of opportunities that come our way.”

Net impairment losses on financial and contract assets in the first half increased to

Dh8.5m, from Dh693,000 in the same period last year.

Set up in 1995, Dubai Investments has interests in the property, industrial, financial, healthcare and education segments. The company, in which sovereign wealth fund Investment Corporation of Dubai holds an 11.54 per cent stake, owns businesses such as Dubai Investments Park, venture capital company Masharie, Al Mal Capital and district cooling company Emicool.

Total assets at the end of June stood at Dh21.4 billion, up 2 per cent since the end of last year.