The Investment Corporation of Dubai (ICD), the main investment arm of the Government of Dubai, reported a record net profit of 60.8 billion UAE dirhams ($16.55 billion) for the fiscal year ending December 31, 2023. This represents nearly double the AED 36.1 billion profit recorded in 2022, highlighting the robust growth of Dubai’s investment portfolio.
ICD’s revenue reached AED 310.2 billion, a 16% increase from the previous year. This growth was largely driven by a significant rise in passenger traffic within the transportation sector, and notable gains in asset growth and higher interest rates in the banking and financial services sectors.
Despite a decline in oil and gas revenues due to falling global oil prices, ICD managed to grow its overall revenues faster than its operational costs, improving profit margins. The transportation sector alone saw its net profit increase by AED 24.6 billion, a 119% rise from the previous year. The banking and financial services sector also performed strongly, with a 69% increase in net profit.
The corporation’s total assets grew by 12% to AED 1.32 trillion, an increase of AED 145.3 billion, while liabilities rose by 11% to AED 1.01 trillion. This asset growth was primarily driven by a 16% increase in banking sector assets, while non-banking operations saw a 5% increase in assets and a reduction in debt.
Equity attributable to ICD’s shareholders increased by AED 21.4 billion, reaching AED 237.9 billion. This rise reflects the improved performance and value of ICD’s diverse portfolio.
“The strong regional economic momentum and increased competitiveness of our businesses resulted in higher margins and better performance across our portfolio companies in the Transportation, Banking and Financial Services, and Other segments,” said Mohammed Ibrahim Al Shaibani, Managing Director of ICD.
ICD’s financial results highlight the strength and stability of Dubai’s economic strategy, demonstrating the effectiveness of its diversified investments. This robust performance positions Dubai as a resilient and competitive player in the global economic landscape, capable of thriving amid varying market conditions.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
30th May, 2024
