Dubai Investments Profits Up 50.2pc On Property Gains

Dubai Investments Co, posted second-quarter profit growth of 50.2 per cent on gains from real estate business. Property sales in the second quarter surged almost four-fold to Dh776.5 million compared to the year-earlier period and costs rose 43.8 per cent to Dh948.1 million in the same period. The firm, whose business ranges from glass-making to pharmaceuticals, made a net profit of Dh546.53 million ($148.8 million) in the second quarter, it said in a statement. Middle East Brokerage said in a Reuters net profit survey last month it expected Dubai Investments to make 535.49 million dirhams in quarterly profit.

This growth has been achieved mainly through the outstanding performance of the group's companies and through the significant gains from our real estate venture, Chief Executive Khalid bin Kalban said a statement. Helped by a more than six-fold rise in oil prices since 2002, the world's top oil-exporting region has witnessed a boom in the real estate and financial services sectors. Net profit in the first half of this year rose to Dh1.035 billion compared with 803 million a year ago and revenue rose to Dh2.66 billion dirhams from 1.76 billion in the year-earlier period, the firm said.

Reuters calculated the quarterly figure based on earlier financial statements. Dubai Investments has about 35 subsidiaries, including Emirates Building Systems, which sells steel structures, and Dubai Investments Real Estate Co, which is building office towers, industrial complexes and residential units. Bin Kalban told Reuters he expected profit of a little more than Dh2 billion for the full year. Dubai Investments shares closed at Dh1.85 yesterday before the results were released. They have gained 13 per cent this year, outperforming the benchmark, which is down almost 9 per cent. Dubai Investments' net profit in the second quarter of 2007 was Dh363.84 million. It posted earnings of Dh488.28 million in the first quarter of 2008.

Source: Khaleej Times