State-owned industrial hub says higher financial costs more than offset rise in revenue
Dubai state-owned industrial hub Jebel Ali Free Zone (JAFZA) said on Monday that profit for the first half of the year fell 20 percent as higher financing costs more than offset a rise in revenue.
The company, which completed a three-pronged financing package to repay a $2bn-equivalent Islamic bond earlier this year, made a profit of AED212m ($57.72m), down from AED265m in the same period last year.
Revenues rose to AED712m in the first half of 2012 from AED662m in the first half of 2012, company financial statements showed.
The company, which runs an industrial free zone on the outskirts of Dubai, incurred net financing costs of AED243.8m for the first half, an increase of 40 percent from the same period last year when such costs were AED173.5m.
In June, JAFZA, a unit of state conglomerate Dubai World, repaid the AED7.5bn sukuk ahead of maturity after it secured refinancing through a $1.2bn sharia-compliant loan, along with a new $650m sukuk and internal resources.