Dubai Investments profit up 2% in H1

Dubai Investments has said it will continue its diversification strategy after posting a 2 per cent increase in first half net profit to Dhs 516m.

In a filing to Dubai Financial Market, the company said its total income increased 18 per cent from Dhs 1.16bn in H1 2015 to Dhs 1.37bn by June 30 2016.

This followed a 20 per cent increase in rental income to Dhs 424m and an 8 per cent increase in contract revenues to Dhs 236m.

It also recorded a Dhs 186m gain related to disposal of subsidiaries and valuation gains of Dhs 86m.

Sale of goods declined marginally to Dhs 450m but the company said mark-to-market investments offset the result by Dhs 27m.

“Dubai Investments delivered a solid set of financial results, completed a number of important transactions and is in a strong position to deploy capital into attractive investment opportunities to drive future growth,” said managing director and CEO Khalid Bin Kalban.

“Building on the positive momentum generated in the first half of 2016 against the backdrop of a challenging market environment, the company plans to continue its diversification strategy, aimed at broadening its geographical footprint, growing its asset base to increase earnings and creating value for the shareholders.”

The firm said its earnings per share in H1 increased from Dhs 0.12 to Dhs 0.13.

Total assets increased Dhs 446m from the beginning f the year to Dhs 15.7bn, including a Dhs 1.1bn cash balance after a Dhs 486m dividend payout in May 2016.

The firm’s liabilities increased from Dhs 346m to Dhs 4.4bn due to a stake increase in property investments.

Read: Dubai Investments sees 2.7% increase in 2015 profit