For the fiscal year that concluded on December 31, 2023, the Investment Corporation of Dubai (ICD) declared a record net profit of 60.8 billion UAE dirhams (USD 16.55 billion), over twice as much as the AED 36.1 billion reported in 2022. AED 50.3 billion was the net profit attributable to the equity holder, a 69% increase from the prior year.
The main investment division of the Dubai government, ICD, reported AED 310.2 billion in income for the year, a 16% increase from the previous year. This gain was attributed to much-increased passenger traffic in the transportation sector, as well as asset growth and higher interest rates in the banking and financial services industries.
Despite a fall in oil and gas revenues in the previous year due to a decline in world oil prices from their peak in 2022, Investment Corporation of Dubai’s overall revenues climbed faster than its operating costs, resulting in higher profits.
The transportation industry reported an increase of AED 24.6 billion, or 119%, while the banking and financial services sector posted a 69% increase in the group’s net profit, which increased 68% over the previous year.
Liabilities increased to AED 1.01 trillion, up 11%, and assets reached AED 1.32 trillion, up 12%, or AED 145.3 billion. The 16% asset growth in banking, according to ICD, was the main driver of these increases. Non-banking businesses decreased their debt while increasing their assets by 5%.
At AED 237.9 billion, the group’s equity stake increased by AED 21.4 billion.
Mohammed Ibrahim Al Shaibani, Managing Director of Investment Corporation of Dubai, said, “The robust 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.”
“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. 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,” the official continued further.
Talking about the road ahead for his organisation, Shaibani commented, “As we continue to pursue growth and diversification, I am confident our businesses’ resilience and strength as well as Investment Corporation of Dubai’s investment strategy will help us fulfil our mandate to maximise value for Dubai. This year, as in every year, the Group’s achievements would not have been possible without the counsel and guidance of Dubai’s eminent Leadership.”
“We would like to express our gratitude to His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Board of ICD, and
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Vice-Chairman of ICD for their tireless and invaluable support. We would also like to extend our thanks to the other members of our Board of Directors, and also to ICD management and employees,” he concluded.