Announcing its consolidated financial results for the year ended December 31, 2023, ICD said this was its best-ever performance, well above 2022 results, with its net profit surging to AED60.8 billion ($16.5 billion), up 68% with an increase of AED24.6 billion over the previous year driven primarily by significantly higher passenger traffic in transportation sector as well as the asset growth and higher interest rates in banking and financial services.

 

The principal investment arm of the Government of Dubai, ICD said the oil and gas revenues declined as global oil prices retreated from their 2022 peak. Overall revenues grew faster than operational costs, boosting margins.

 

The Group reported a record net profit of AED60.8 Billion, up 68 per cent with an increase of AED24.6 Billion 

 

The strong momentum in real estate and hospitality sectors contributed to the record profits posted by many businesses in the Group. Oil & Gas and aluminium production generated good profits, albeit lower than last year.

 

The Net Profit attributable to the equity holder was AED50.3 Billion, up 69 per cent. It rose predominantly from Transportation, up 119 per cent, and Banking and Financial Services, up 69 per cent, lifting their net profit to new highs. 

 

Assets reached a new record of AED1,322.1 billion, up 12 per cent or AED145.3 billion, and Liabilities AED1,011.3 billion, up 11 per cent, primarily pushed by the 16 per cent asset growth in banking. 

 

Non-banking operations grew their assets up by 5 per cent whilst reducing their indebtedness. The Group’s share of Equity increased by AED21.4 Billion, rising to a record of AED237.9 Billion.

 

On the solid performance, Managing Director Mohammed Ibrahim Al Shaibani said: "ICD today delivered its best-ever performance, a truly exceptional achievement as the Group posted, for the third consecutive year, tremendous growth and reached an unparalleled level of revenue and profitability, primarily driven by airlines and banking sectors."

 

"The strong regional economic momentum and increased competitiveness of our businesses created an effect of scale resulting in higher margins and performance of our portfolio companies operating in the Transportation, Banking and Financial Services, and Other segments," he stated.

 

Overall, the improved liquidity, asset quality, and the reduced leverage in non-banking operations further strengthened the Group’s financial position; Assets and Equity reached new records, said Al Shaibani. 

 

"As we continue to pursue growth and diversification, I am confident our businesses’ resilience and strength as well as ICD’s investment strategy will help us fulfil our mandate to maximise value for Dubai," he added.-TradeArabia News Service