DUBAI / WAM
Investment Corporation of Dubai (ICD) announced on Tuesday its consolidated financial results for the year ended December 31, 2021, having generated revenues of AED169.4 billion and reported a net profit of AED10.1 billion, a significant turnaround from last year as business recovery accelerated.
Revenues were AED169.4 billion, up 24.5 percent 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 AED10.1 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 AED5.5 billion.
The balance-sheet remained above AED1 trillion, with assets and liabilities down 1 percent respectively to AED1,101.1 billion and AED862.7 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 percent to AED190.6 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.”