Dubai wealth fund ICD posts Dhs28.3bn in half-year profit

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The Investment Corporation of Dubai, the emirate’s sovereign wealth fund, reported a more than 91 per cent surge in half-year profit, driven by growth across all business segments amid strong economic momentum in the UAE.

ICD said its banking and transportation divisions’ respective respective contributions to the wealth fund’s profit soared by Dhs8.2bn and Dhs7.7bn.

The net profit attributable to the equity holder, the Government of Dubai, was Dhs22.6bn.

The sovereign fund said its real estate and hospitality segments also displayed strong performance, but lower commodity prices reduced profitability in oil and gas, and aluminium production compared to the same period a year ago.

“The group saw its activity accelerate, lifting revenue and profitability to new heights, with very solid performances across sectors and exceptional contributions from transportation and banking and financial services,” said Mohammed Ibrahim Al Shaibani, managing director of Investment Corporation of Dubai.

ICD’s revenues reached a record Dhs145.1bn, up 20 per cent with an increase of Dhs24bn compared to the prior year period.

Growth was driven by a significant rise in travel and tourism activities, reflected in transportation and a jump in banking and financial services revenues on the back of higher interest rates and strong lending growth.

“Overall, revenues increased faster than operational costs, boosting margins,” the fund said in a statement.

ICD’s assets soared by 6.5 per cent to reach a record Dhs1.3tn, primarily driven by the growth of banking assets.

The wealth fund said its liabilities increased to Dhs974.5bn on much higher banking customer deposits whilst non-banking borrowings and lease liabilities were reduced by 5.7 per cent.

ICD’s growth strategy

Meanwhile, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai issued a new decree earlier in October to form the board for the ICD.

The sovereign fund is chaired by Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince and Chairman of The Executive Council of Dubai.

Founded in 2006, ICD is the principal investment arm of the government of Dubai and has holdings in Emirates Group and Emirates NBD, Emaar Properties and Emirates National Oil Company (ENOC).

Emirates Group reported record 2023/24 half-year profit and revenue figures, driven by robust demand for international travel across regions as the global aviation industry has fully recovered from the impact of the Covid-19 pandemic. The group’s profit reached Dhs10.1bn while its revenue soared by 20 per cent to Dhs67.3bn.

Read: How GCC wealth funds are fuelling growth and prosperity