State-linked company sees weaker third quarter profit on bad loans, says CEO
Dubai Investments has secured AED700m ($190.6m) of a AED1.2bn
loan it wants to raise, but will post a weaker third-quarter profit because of
provisions, the firm's chief executive said on Tuesday.
The company, in which sovereign fund Investment Corporation
of Dubai (ICD) owns an 11.5 percent stake, sees third-quarter profit of AED30m,
compared to a profit of AED213.61m a year-ago, chief executive Khalid Bin
Kalban told reporters at a press conference.
Profit for the nine-months to Sept 30 should be around AED270m,
"The third quarter will be worse than Q1 and Q2. We
have to take provisions for clients in Libya and Syria who have not paid due to
the unrest," he said.
The company, which has interests in several sectors
including property and manufacturing, has now secured AED700m of the AED1.2bn loan.
It had only raised a quarter of this total by July, having said in April it
expected the loan to be finalised by May.
This was to be used to expand Emirates Float Glass, a
manufacturing unit in Abu Dhabi and to complete the last phase of its
industrial development Dubai Investment Park.
Kalban said the company is eyeing three acquisitions in the
UAE, Saudi Arabia and Turkey, valued at AED250m, as it looks to increase its
footprint outside the Gulf Arab region.
He said Dubai Investments is also looking at acquisition or
start-up opportunities in India and will try revive a stalled project in Libya
it values at €80m.
Kalban said Dubai Investments would increase the capital of
its private equity unit Masharie to AED1bn from AED600m, pending shareholder
It had planned to sell a 30 percent stake in the unit
through an initial public offering in mid-2011, but this has been postponed
because of depressed market conditions