The Dubai Government Investment Corporation achieved a net profit of 25 billion dirhams, during the past year, an increase of 16.9% compared to 2018, while revenue reached 228 billion dirhams.

The Foundation said in a statement yesterday that the assets grew to a record level of 1.121 trillion dirhams during the year 2019, an increase of 27.5%, compared to the end of 2018.

Profits and revenues

In detail, the Dubai Government Investment Corporation "The Corporation" announced yesterday its consolidated financial results for the year ended December 31, 2019, achieving revenues amounting to AED 228 billion, and net profits of AED 25 billion. In the statement, the Corporation revealed a decrease of 1.9%, compared to a year 2018, with a decrease in oil and gas revenues, and a partial decrease in transportation income, reflected by an increase in banking and financial services income and in other sectors.

She added that the net profit increased during the past year by 16.9% over the year 2018, indicating that this includes the standard contribution from banking and financial services, and a strong performance from transportation.

The Foundation indicated that it was offset by these lower contributions from oil and gas and aluminum production.

The net profit attributable to the shareholders of the Foundation reached 18 billion dirhams, during the past year, an increase of 10.7%, compared to the previous year.

Origins

Assets grew to a record level of 1.121 trillion dirhams, during the past year, an increase of 27.5%, compared to the end of 2018, while debts amounted to 869.7 billion dirhams, an increase of 35.6%.

This is mainly due to the acquisition of Denizbank, continued business growth, as well as the adoption of the new IFRS 16, lease accounting rules.

The group's share of shareholders' equity increased by 3.5%, to reach 204.6 billion dirhams, compared to the end of 2018, despite a one-time adjustment of 9.7 billion dirhams in relation to the adoption of International Financial Reporting Standard No. 16.

Powerful performance

"In 2019, the Corporation achieved a very strong performance, given the great challenges facing the global economy and its impact on our business," said Mohamed Ibrahim Al Shaibani, member of the Board of Directors and CEO of the Dubai Government Investment Corporation.

He added that «the diversity of the Foundation’s activities and its flexibility in volatile markets are important factors when it comes to providing consistent performance on an annual basis», noting that «moreover, the record level of the assets reached by the Foundation, which exceeds a trillion dirhams, reflects the continuous growth that Our major business has achieved it over time and scale of its operations. ”

Al-Shaibani added that «in 2020, with the great turmoil arising in the aftermath of the crisis (Covid-19), we focus on adjusting our operations to maintain their ability to work competitively when the health crisis recedes, and we remain confident that the institution can achieve sustainable returns in the long term from For the sake of Dubai’s prosperity. ”

Dubai Government Investment Corporation

Dubai Government Investments Corporation is the main investment arm of the Dubai government.

Founded in May 2006, it has been mandated to consolidate and manage the Dubai government's portfolio of investments and commercial enterprises.

The Dubai Government Investment Corporation has also been assigned the tasks of strategic supervision of the Dubai government’s investment portfolio, by developing and implementing robust 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 run.

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 consistent with the current portfolio, the Corporation has continuously expanded Dubai's position in its presence and expertise in global markets.

The “Foundation” has performed strongly due to the great challenges facing the global economy and its impact on business.

• 228 billion dirhams revenue of the institution last year.

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