The Dubai Government Investment Corporation achieved a net profit of 10.5 billion dirhams during the first half of this year, an increase of 4.4%, compared to the same period last year, while revenue amounted to 106.3 billion dirhams.

The Foundation revealed yesterday, in a statement, during which it announced its financial results for the first six months of 2019, that its assets increased to a record level of 971.1 billion dirhams, a growth of 10.4% over the end of last year.

Profits and revenues

In detail, the Dubai Government Investment Corporation announced yesterday its consolidated financial results for the period ending on June 30, 2019, where revenue amounted to 106.3 billion dirhams, a decrease of 7.7% over the same period last year, mainly due to the decrease in oil prices .

The Corporation clarified in a statement that the net profit grew by 4.4% to reach 10.5 billion dirhams during the first half of this year, compared to the same period last year, driven by the high performance of the banking, financial and transportation services sectors.

Oil, gas and aluminum

On the other hand, the production of oil, gas and aluminum witnessed a decrease in the profits of its production, while the results of banking and financial services benefited from a profit of 2.1 billion dirhams due to the IPO of Network International Holding (PLC).

The net profit attributable to the shareholders of Dubai Government Investment Corporation reached 6.9 billion dirhams, registering a decrease of 8.3% during the comparison period.

Origins

The assets of Dubai Government Investment Corporation rose to a record level of 971.1 billion dirhams, an increase of 10.4% over the end of last year, while debts amounted to 739.3 billion dirhams, an increase of 15.3%.

These increases are due to the adoption by the Corporation of the International Financial Reporting Standard No. (16) "leases", which added 58.5 billion dirhams of assets, and 68.2 billion dirhams of debts, in addition to the continued growth of the Foundation's business.

The group’s share of shareholders ’equity decreased by 3.7% to 190.4 billion dirhams, compared to the end of 2018, mainly due to a one-time adjustment of 9.7 billion dirhams in relation to the adoption of the International Financial Reporting Standard No. (16).

Powerful performance

“During the first six months of 2019, despite its immunity from slowing global growth and fluctuating commodity prices, the Dubai Investments Corporation group provided a strong performance showing the flexibility of its activities,” said Mohamed Ibrahim Al Shaibani, Board Member and CEO of the Dubai Government Investment Corporation. ». Al-Shaibani added, “Diversifying its operations and focusing on improving more competencies and developing the foundation’s core business has helped to meet difficult market conditions, as well as the company’s continued journey towards achieving long-term goals for the sake of Dubai’s prosperity.”

Dubai Government Investments

It is noteworthy that the Dubai Government Investment Corporation is the main investment arm of the Dubai government. It was established in May 2006, according to Decree No. (11) of 2006, and it has been mandated to unify and manage the Dubai government’s portfolio of investments and commercial institutions. It has also been assigned the tasks of strategic oversight of the Dubai government’s investment portfolio, by developing and implementing tight investment strategies and high standards of corporate governance. The Foundation focuses on raising the value of investments, in order to achieve the maximum benefit for the stakeholders and the Emirate in the long term.

Strategic sectors

The Dubai Government Investment Corporation’s portfolio includes a number of leading companies, across a diverse spectrum of vital sectors, which the Dubai government considers strategic sectors that serve the Emirate’s development and growth goals.

These sectors include: financial services, transportation, industry and energy, real estate and construction, hospitality and leisure, retail and more.

In addition, through a global investment strategy that is disciplined, sustainable and compatible with the current portfolio, Dubai Government Investment Corporation has continued to expand Dubai's position in its presence and expertise in global markets.

106.3

Billions of dirhams revenue

"The Foundation", during

The first half of

2019.