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Dubai: Dubai Investments secured a solid Dh1.1 billion net profit for 2015 helped along by a strong showing of its real estate interests that includes an industrial park. The numbers stack up well compared with 2014, when it had a net of Dh871 million. But that includes the one-off Dh472 million from the sale of a 66 per cent stake in the drug company Globalpharma.
If the one-off was excluded, the 2015 net represents a 27 per cent gain on the previous year’s numbers. The return on equity is 10.3 per cent, according to the unaudited results.
“We have once again delivered strong results against the backdrop of a challenging environment,” said Khalid Bin Kalban, Managing Director and CEO. “This underpins the diverse nature and adaptability of our businesses which enable us to take advantage of varied opportunities that arises in the market from time to time.”
Net profit for Q4-2015 was Dh357 million, a year-on-year increase of 2.7 per cent, while total assets were up Dh1 billion to Dh15.5 billion.
“As part of the Group strategy, we have now ventured into the health care and education sectors, as these are areas which we believe will benefit from significant growth in the future,” said Bin Kalban. “We have also tapped into promising markets across the GCC and Africa to further strengthen our position as a regional powerhouse.”
This includes a major push into Saudi Arabia, where it has a joint venture to develop an industrial park in Riyadh. Also last year, it raised its stakes in Al Mal Capital and Emirates Float Glass, and made investments in King’s College Hospital Dubai and the Dubai campus of Modul University. The Group also divested its stakes in rubber companies held by its subsidiary Masharie, and in the process realising an IRR (internal rate of return) of 18 per cent.
“In 2016, Dubai Investments will continue to target new opportunities, with a focus on increasing its asset base, strengthening bottom-line and improving operational efficiency,” said Bin Kalban.
The holding company now owns 41 subsidiaries, joint ventures and associates across a range of sectors.
Source: Manoj Nair, Associate Editor, gulfnews.com