Dubai Investments Swings to Profit in Fourth Quarter

The holding firm, which has a diverse portfolio of investment in companies including those in manufacturing, dairy and real estate, in a statement to the stock exchange reported net income of Dh141 million, compared with a loss of Dh87 million in the fourth quarter of 2008.

“The results have exceeded the expectations which were low due to the current economic crisis,” it said.

Full-year net profit attributable to shareholders, which include the Government of Dubai, Emirates NBD, Commercial Bank of Dubai and Dubai Duty Free, declined around 40 percent to Dh963 million against Dh1.58 billion in 2008. The company attributed the decline in revenues to economic slowdown as a result of the global financial crisis affecting the real estate sector.

“The Group has maintained its track record of delivering strong results despite decline in revenue, primarily due to the general slowdown in the economy due to the financial crisis which has affected the real estate sector,” the statement said.

The group’s assets were up by 6 per cent to Dh15.15 billion in 2009 and the shareholders’ equity rose 9 per cent to Dh7.9 billion, it said.

Managing Director and CEO Khalid Jassim Kalban recently said in an interview that the group 
had made an unaudited Dh1.1 billion profit for 2009, but expected to revise that downwards with provisions. He had also said that the firm made an unaudited profit of Dh300 million in the fourth quarter, but expected adjustments to that figure.

The company’s shares closed 3.5 percent higher at Dh0.9 per share on Wednesday.

The UAE’s property sector has suffered as a result of the global financial crisis, with companies’ earnings results reflecting the extent of the downturn.

business@khaleejtimes.com