By Andy Sambidge
Dubai Holding Commercial Operations Group runs major business units such as Jumeirah and TECOM
Dubai Holding Commercial Operations Group (DHCOG), part of a conglomerate owned by the emirate's ruler, reported a net profit of AED4.7 billion ($1.27 billion) for 2014, up 42 percent on the previous year.
DHCOG, part of Dubai Holding which runs multiple businesses including hotel group Jumeirah, business park TECOM Investments and Dubai Properties Group, reported a 14 percent rise in total revenue to AED13.2 billion with recurring revenues up 8 percent to AED7.6 billion.
Mohammad Abdulla Al Gergawi, chairman of Dubai Holding, said: "DHCOG is delivering consistently growing recurring revenue streams, which enables us to take advantage of emerging opportunities in further support of Dubai’s diversification strategy.
"Central to Dubai’s diversification is the plan to turn it into a global powerhouse for innovation and the group is investing heavily in support of this aim. We have a number of programmes already running and our AED4.5 billion bundle of initiatives will help drive forward Dubai’s agenda to become the innovation capital for more than 2 billion people who live in the region around us. We are fully committed to Dubai’s long-term economic growth."
Ahmad Bin Byat, CEO of Dubai Holding, added: "DHCOG goes from strength to strength. Our business units continue to outperform our expectations and we have robust growth strategies to keep this momentum going."
DHCOG said it continued to strengthen its balance sheet along with its liquidity and cash position.
It's TECOM unit’s 11 industry-specific business parks now employ over 74,000 individuals through 4,658 businesses while its Dubai Design District (d3) project continues to develop Phase 1 as planned and attracted 161 local and international design companies during 2014, a statement said.
It added that SmartCity Dubai, the international business parks development arm, also made significant progress in 2014. SmartCity Malta occupancy levels stand over 72 percent, while SmartCity Kochi’s first phase was substantially completed, with new agreements to develop an additional 4 million square feet of space.
Its hotel unit Jumeirah continued to expand its geographical footprint during the year with multiple new management contracts including four in China, one in both Goa in India and Mauritius, as well as additional hotels in Dubai.
The statement said construction of Madinat Jumeirah Phase IV, the 430-room resort development opposite Burj Al Arab, is on track for completion in 2016.