Dubai wealth fund posts $7bn profit

20 May 2020
State investment vehicle's assets reach record high of AED1.1tn in 2019

The government-owned Investment Corporation of Dubai (ICD) reported a net profit hike of 16.9 per cent to AED25bn ($6.8bn) for the 2019 fiscal year.

Net profits grew on the back of strong performances from companies in ICD’s banking and financial services and transportation portfolios.

ICD said this growth was offset by lower contributions from its oil and gas and aluminium production companies. 

These declines also contributed to a 1.9 per cent reduction in ICD’s revenues, which reached AED228bn in 2019. 

Asset values

ICD, considered the sovereign wealth fund of Dubai, said the value of its assets crossed AED1.1tn in 2019, marking a 27.5 per cent growth over corresponding 2018 values.

Liabilities grew by 35.6 per cent to reach AED869.7bn, with both asset and liability hikes largely driven by ICD-owned Emirates NBD's acquisition of Turkey's Denizbank.

ICD is the owner of Dubai’s largest wealth drivers, including real estate company Emaar and UAE flag carrier Emirates.

Finance companies account for 33.4 per cent of ICD’s assets, followed by transport (18.2 per cent), oil and gas (17.4 per cent) and hospitality ventures (12.3 per cent).

Sixteen per cent of ICD’s portfolio is comprised of real estate assets, including Dubai Airport Free Zone, Dubai World Trade Centre, Dubai Silicon Oasis and Ithra Dubai.

ICD-owned Emirates Group recorded its 32nd consecutive annual profit, albeit on narrower margins, in the 2019/20 financial year.

The group, comprising Emirates airline, Emirates SkyCargo and Dnata, made a profit of AED1.7bn in 2019/20, down about 28 per cent from the previous financial year’s profit of AED2.3bn.

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