Dubai Investments posts 6.3% rise in Q1 profit

Conglomerate Dubai Investments posted a 6.3 percent rise in quarterly net profit on Sunday 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 AED107.5m ($29.3m) for the first-quarter, compared with 101.1 made in the same period in 2011. Revenue for the quarter was AED623m as against AED643m 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 AED374m from AED324m in the same period in 2011. The company, which has interests in several sectors including property and manufacturing, said total assets stood at AED13.5bn 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 AED1bn this year through sale of a sukuk, or Islamic bond, to finance the expansion of its manufacturing units and repay debt.