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Dubai Holding’s net profit surges 178% to Dh3.3b in 2013

Dubai: Dubai Holding Commercial Operations Group (DHCOG), Dubai Holding’s business unit, recorded a net profit of Dh3.3 billion in 2013, marking a 178 per cent increase over 2012, according to a company statement on Sunday.

“Dubai’s economy is enjoying renewed business confidence across many of its core market segments and Dubai Holding’s businesses are playing an important role in driving that market sentiment as well as benefitting from it,” said Mohammad Abdullah Al Gergawi, Dubai Holding’s Chairman, in a statement.

Established in 2004, Dubai Holding is a global investment conglomerate with interests in 24 countries.

DHCOG’s four businesses include Jumeirah Group, Tecom Investments, Dubai Properties Group and Emirates International Telecommunications.

The group was hit by the global financial crisis in 2008 but has since come back strongly, recording Dh1.2 billion in net profits and Dh9.2 billion in revenues in 2012. Its total assets stood at Dh86.33 billion, and had a cash balance of Dh1.7 billion at the end of the year.

Revenues grew by 27 per cent to touch Dh11.6 billion in 2013, with recurring revenues reaching Dh6.9 billion, up 10.7 per cent. In addition, normalised earnings before interest, taxes, depreciation and amortisation (Ebitda) touched Dh5.5 billion, while assets reached Dh116 billion.

Meanwhile, the company’s liabilities were reduced from Dh36.7 billion in 2009 to Dh19.2 billion in 2013.

“The group has serviced all public and bank debts and repaid them upon maturity, negotiated settlements with contractors and made timely payments, and continued development of infrastructure and construction, to hand over completed units to its customers,” the company said in the statement.

The group’s public and bank debts were reduced from Dh15.2 billion in 2009 to Dh10.9 billion in 2013, amounting to an 8 per cent annual reduction. Meanwhile, the group’s debt-to-equity ratio declined from 1.04 to 0.6 during the same period. Its cash balance stood at Dh3.9 billion in 2013. 

Dubai Holding said earlier this year that Dubai Group, its financial services unit, has reached a final agreement with all financial lenders regarding the restructuring of approximately $6 billion (Dh22.06 billion) of bank facilities.

DHCOG’s businesses continue to expand. Last year, Jumeirah Group started the construction of the fourth phase of Madinat Jumeirah, a 430-room resort development opposite Burj Al Arab, which is expected to be completed in 2016.

Construction on three of Jumeirah’s five managed hotels in China and one in Bali is underway.

Also, Tecom Investments, which has more than 4,500 businesses, is developing the Dubai Design District, aimed at positioning the emirate as a design and fashion hub. The first phase of the development is expected to be completed by January 2015.