Investment Corporation of Dubai reports Dhs10.1b profit for 2021

Investment Corporation of Dubai (ICD) announced on Tuesday its consolidated financial results for the year ended Dec.31, 2021, having generated revenues of Dhs169.4 billion and reported a net profit of Dhs10.1 billion, a significant turnaround from last year as business recovery accelerated.

Revenues were Dhs169.4 billion, up 24.5 per cent compared to the prior year, driven primarily by rallying commodities prices in oil and gas, higher levels of activity in transportation, and strong momentum in the other segment as global travel restrictions gradually eased. Expo 2020 Dubai also acted as a catalyst for the recovery.

The Group reported a net profit of Dhs10.1 billion, reflecting a sizeable positive swing in profitability, with improvements across all segments, helped primarily by revenue growth, rigorous cost discipline, and lower impairments in the banking, real estate, and hospitality sectors. Aluminium production operations also contributed materially to these results.

The net profit attributable to the equity holder was Dhs5.5 billion.

The balance-sheet remained above Dhs1 trillion, with assets and liabilities down 1 per cent respectively to Dhs1,101.1 billion and Dhs862.7 billion, primarily due to lower banking balances offsetting the growth of non-banking operational balances, and a cautious approach to CapEx deployment. The Group’s share of equity decreased by 1 per cent to Dhs190.6 billion.

Mohammed Ibrahim Al Shaibani, Managing Director of Investment Corporation of Dubai, commented, “In 2021, the ICD Group saw its businesses’ overall level of activity increase materially, and profitability bounces 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 more robust recovery, helped by the easing of global travel restrictions and the positive impact of the hosting of Expo 2020 Dubai.

“Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness.”

“The proactive measures taken by the UAE government and the leadership of Dubai to manage the effects of the pandemic contributed meaningfully to Dubai’s strong economic rebound and in making Dubai an even more attractive place to live and work.”

Investment Corporation of Dubai (ICD) is considering selling British software company SmartStream Technologies Group.

Citing sources familiar with the matter, it was reported that SmartStream’s owner is seeking $1 billion for the potential sale, but no final decisions have been made and the asset may be retained if no suitable bidders are found.

SmartStream was acquired in 2007 after the UK firm scrapped plans for an initial public offering, and ownership was then transferred to ICD.

Investment Corporation of Dubai (ICD) participated in Expo 2020 Dubai with a memorable, welcoming and enriching experience designed and built by ALEC FITOUT and design partners Icaria Atelier and LMS.

Narrated over eight nodules interspersed with seating and relaxation areas made of all-natural materials, the pavilion was designed to give respite from the busy and crowded areas elsewhere around the Expo site.

At the ICD pavilion visitors to Expo 2020 Dubai had been be taken on an exciting journey to explore some of ICD portfolio companies, namely Kerzner, DMCC, Emirates Global aluminium, Dubal Holding, LINQ by ALEC, Emaratech and Dubai Global Connect.

On entering the pavilion, visitors toured the world of ICD in an immersive yet relaxed experience around 1350 square meters that boast excellence, commitment, sustainability, integrity, and respect.

Douraid Zaghouani, Chief Operating Officer at ICD, said “Dubai is the first city in the Middle East to host the World Expo and we were thrilled to be participating and showcasing the best our emirate has to offer. This inevitably includes ICD and its subsidiaries that have become household names not only here at home but across the globe.” The Expo Dubai ICD experience was a spatial narration of the corporation’s story, told through a physical space effortlessly integrating natural elements with the clever technology.

On the outside, the ICD pavilion was a bamboo structure radiating light and movement, enticing visitors to enter through a curious audio-visual waterfall aperture screening the ICD corporate identity. Past the waterfall, visitors are engulfed by tall hedges and guided through the pavilion by whirling stems and stalks and winding grassy slopes.

The ICD experience can accommodate 189 visitors per journey, or 252 visitors per hour.