ICD bounces back with Dh10.1 billion in profit
01 June 2022 – Khaleej Times – www.khaleejtimes.com
The state-owned Investment Corporation of Dubai returned to a full-year profit in 2021, rebounding from a pandemic-induced $5.15 billion loss.
ICD reported on Tuesday Dh10.1billion in net profit and generated revenues of Dh169.4 billion for the year ended December 31, 2021, with improvements recorded across all segments.
The investment fund’s revenues surged 24.5 per cent compared to the prior year, driven primarily by rallying commodities prices in oil and gas, higher levels of activity in transportation, and momentum in the other.
The fund said in a statement that the surge in net profit reflected a sizeable positive swing in profitability, with improvements across all segments, “helped primarily by revenue growth, rigorous cost discipline, and lower impairments in the banking, real estate, and hospitality sectors.” Aluminium production operations also contributed materially to these results.
The net profit attributable to the equity holder stood at Dh5.5 billion. The balance sheet remained above Dh1.0 trillion, with assets and liabilities down 1.0 per cent respectively to Dh1,101.1billion and Dh862.7 billion primarily due to lower banking balances offsetting the growth of non-banking operational balances, and cautious Capex deployment. Meanwhile, the group’s share of equity decreased by 1.0 per cent to equal Dh190.6 billion.
“In 2021, the ICD Group saw its businesses’ overall level of activity increase materially, and profitability bouncing back. Whilst good progress was made during the earlier part of the year despite the virus variant disruptions, the second part of the year saw a much more robust recovery, helped by the easing of global travel restrictions and the positive impact of the hosting of Expo 2020 Dubai,” said Mohammed Ibrahim Al Shaibani, managing director of ICD.
“Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness. The proactive measures taken by the UAE government and the leadership of Dubai to manage the effects of the pandemic contributed meaningfully to Dubai’s strong economic rebound and in making Dubai an even more attractive place to live and work,” Al Shaibani said