The Investment Corporation of Dubai (ICD) has seen a ‘significant turnaround’ with AED10.1 billion ($2.75 billion) net profit.
Its financial results for the year ended 31 December 2021 showed revenue of AED169.4 billion as business recovery accelerated. This was a 24.5 percent increase on the previous year’s figure.
ICD said this recovery was driven primarily by rallying commodity prices in oil & gas, higher levels of activity in transportation, and strong momentum in other segments as global travel restrictions gradually eased. The recent Expo 2020 Dubai also acted as a catalyst for the recovery.
The group said the large positive swing in profitability was the result of revenue growth, rigorous cost discipline and lower impairments in the banking, real estate and hospitality sectors. Aluminium production operations also contributed significantly.
Managing Director of the Investment Corporation of Dubai, Mohammed Ibrahim Al Shaibani, said:“In 2021, the ICD Group saw the overall level of activity of its businesses increase materially and profitability bounce back.
“Whilst good progress was made during the earlier part of the year despite the virus variant disruptions, the second part of the year saw a much stronger recovery helped by the easing of global travel restrictions and the positive impact of the hosting of Expo 2020 Dubai.”
He added that its portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models and enhance cost-effectiveness.
Al Shaibani credited the proactive measures taken by the UAE government and the leadership of Dubai to manage the effects of the pandemic for contributing meaningfully to Dubai’s strong economic rebound.
“Our balance sheet stayed resilient despite the significant volatility of the global economy. We are proud to see the progress made by our organisation in terms of recovery and are confident that the Group is well-positioned to benefit further from new opportunities.”
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