Dubai Investments net profit up 6.3%

Conglomerate Dubai Investments posted a 6.3-percent rise in quarterly net profit yesterday and said the company was reviewing opportunities to divest some of its businesses. The firm, in which sovereign wealth fund Investment Corporation of Dubai (ICD) owns an 11.5-percent stake, made a net profit of 107.5 million dirhams ($29.3 million) for the first-quarter, compared with 101.1 made in the same period in 2011. Revenue for the quarter was 623 million dirhams as against 643 million dirhams in the prior-year period, the company said in a bourse statement. Dubai Investments, whose manufacturing business was hit by political unrest in the Gulf Arab region, said improvements in the regional political conditions and a revival of UAE's tourism and hospitality sectors helped bolster its quarterly net profit. Revenue from sale of goods and services increased to 374 million dirhams from 324 million dirhams in the same period in 2011. The company, which has interests in several sectors including property and manufacturing, said total assets stood at 13.5 billion dirhams at the end of the first quarter. It has been eyeing an exit from some of its businesses and said that it was still reviewing opportunities. "The management is closely monitoring economic developments and reviewing opportunities for divestment. These divestment are expected to provide significant returns in the near future," said Khalid Kalban, managing director and chief executive of Dubai Investments. Dubai Investment shares ended 0.6 percent higher on the Dubai bourse before the announcement of the earnings. The conglomerate wants to raise up to 1 billion dirhams this year through sale of a sukuk, or Islamic bond, to finance the expansion of its manufacturing units and repay debt.