Dubai Investments profit jumps to Dh805 million



Dubai Investments recorded significant profit growth in the second quarter after an increase in the value of its securities portfolio and the sale of a stake in a pharmaceutical subsidiary.

The company earned profits of Dh805 million, driven by a near-doubling of the value of its “unquoted equity securities, funds and bonds”. The value of its unquoted security holdings increased from Dh268.5m in December to Dh512.3m at the end of June.

Dubai Investments also gained from its sale of a 66 per cent stake in Globalpharma, a manufacturer of generic drugs, to the French company Sanofi. This deal earned Dubai Investments Dh370m in receivables in the second quarter.

Dubai Investments’ listed equities portfolio fell slightly to Dh362m in the second quarter, down from Dh373m at the beginning of the year.

Investments outside of the GCC experienced the largest growth, with international investments increasing in value from Dh281.8m to Dh452.3m – a gain of 60 per cent.

Revenue from real estate development increased by 24 per cent over the first half of the year to Dh399.6m, up from Dh320.4m in the year-earlier period.

Construction revenues rose slightly to Dh752m in the first six months of the year, up from Dh727m in the previous comparable period.

Dubai Investments’ cash position decreased slightly, with holdings totalling Dh751m at the end of June, down from Dh 1 billion in the first quarter.

First-half earnings per share grew from Dh0.09 to 0.21.

The company’s share price decreased by 0.56 per cent, closing at Dh3.53 a share.

Dubai Investments said last month that it was considering two major acquisitions, made possible by its strong cash position.

“Several projects are under consideration,” said Khalid bin Kalban, the chief executive of Dubai Investments. “We have a strong thrust in developing our real estate business.”

Dubai Investments is examining mixed-use business park developments in Libya and Erbil, the company said in May. These would be similar to the existing Dubai Investments Park.

In April, the company voted at its annual general meeting to issue a dividend worth 7 per cent of the share price in cash, and 7 per cent in bonus shares.

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

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