Dubai Investments expects full-year profit to fall 9%

Dubai Investments (DI) expects full-year net profit to drop 9 per cent because of a one-off gain recorded last year, chief executive Khalid bin Kalban said yesterday.

Profit is now expected to come in at Dh1.2 billion compared with Dh1.32bn last year.

In 2014, DI recorded a one-off gain of Dh472 million from the sale of a 66 per cent stake in the pharmaceuticals company Globalpharma to France’s Sanofi.

It reported a 30 per cent increase in third-quarter net profit to Dh246 million yesterday compared with Dh189m a year ­earlier.

The profit soared due to the acquisition of the remaining 50 per cent stake in Moujama subsidiary and property revaluation from Dubai Investment Park, a mixed-used real estate development.

The Dubai-based diversified investment firm is also planning to sell at least a 30 per cent stake in Emicool, a district cooling subsidiary, in an initial public offering in the second half of next year, depending on market conditions, said Mr Kalban.

Sovereign wealth fund Investment Corporation of Dubai is the largest shareholder in the company, with an 11.5 per cent stake.

Full-year net profit will benefit from another divestment this year, he added.

“We will be exiting one of the companies which will give us a profit of around Dh170m and this is going to happen within a month from now,” said Mr Kalban, declining to name the company.

Dubai Investments is still seeking acquisitions after acquiring this year a 60.8 per cent stake in the Dubai-based investment bank Al Mal Capital, said Mr Kalban.

DI is also planning to invest more than Dh5bn over the next three years and will tap markets potentially in 2017 to help finance its investments.

“We are thinking of issuing sukuk or borrowing from the banks,” said Mr Kalban.

The company has Dh3.4bn in cash and quasi-cash which it can use to finance new investments.

The company also has projects in hospitality, health care and education.

Besides the UAE, DI is investing in Saudi Arabia, Angola and possibly Morocco to ­develop real estate projects similar to Dubai Investment Park.

The Morocco project, which is still under negotiations, may start next year.

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Dania Saadi

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