Dubai Investments expects Dh800m net profit in 2013: CEO

Dubai Investments expects Dh800m net profit in 2013: CEOImage Credit: Supplied

Dubai Investments expects to announce in excess of Dh800 million in net profits for 2013, Khalid Bin Kalban, Chief Executive Officer of Dubai Investments, told Gulf News in a phone interview on Thursday.

He said the projected 148.9 per cent net profit increase was largely driven by the company's real estate and financial portfolio.

''We have some funds in that [financial] portfolio in stocks and shares and these have grown with the market. Then we have a good real estate portfolio where income has improved,'' he said.

In 2012, Dubai Investments reported Dh321.4 million in net profit. Its portfolio includes Dubai Investment Park, building materials companies including Emirates Glass and Abu Dhabi Investment House.

In the wake of the successful Expo 2020 bid, Bin Kalban said the company will focus on its real estate and building materials and manufacturing units. ''We are looking positively on our forecast [for 2014]... we will be focusing on real estate,'' he said.

In 2013, Dubai Investments benefited from an increase in rental income and the selling of real estate in its wholly-owned Dubai Investment Park. Bin Kalban confirmed the company would continue to focus on Dubai Investment Park in 2014 including more investments.

Emirates Extrusion Factory (EEF), a subsidiary of Dubai Investments' equity arm Masharie LLC, recently announced plans to add new production line at its aluminium extrusion plant in Techo Park at a cost of Dh13 million. Masharie subsidiary Drive Dubai announced the opening of two branches in Dubai World Central and Dubai Motor City last month.

Sukuk in Q1, 2014

Bin Kalban said Dubai Investments is currently considering a $300 million (Dh1.1 billion) sukuk in the first quarter of 2014 and plans to partially exit two of its investments that will return Dh500 million in profit.

Bin Kalban said the exits were planned for 2013 but ''did not materialise.'' He would not specify which investments are being sold off but said an announcement is expected shortly once all documents are finalised.

''We hope this will finish it by end of first quarter 2014.. it will give us boost,'' he said.

Pressed on what other divestment the company will make to its portfolio, Bin Kalban said it would be dependent on the market but affirmed the company's focus to the real estate sector in 2014.

Last month, Dubai Investments announced its glass exports increased by 129 per cent over the past five years. Its shares closed up 2.81 per cent at Dh2.56 on the Dubai Financial Market on Thursday.

Source: Alexander Cornwell, Staff Reporter, gulfnews.com

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