Dubai Investments Reports 21% Surge in 2024 Net Profit
Total income for the year reached AED 4.66 billion, up from AED 4.11 billion in 2023. This growth was primarily driven by a substantial rise in property sales, amounting to AED 1.03 billion, reflecting a strong demand for real estate projects. Notably, the successful execution of the Danah Bay project on Al Marjan Island in Ras Al Khaimah contributed significantly to these sales figures.
Rental income also saw an upward trajectory, increasing to AED 1.05 billion. This boost is attributed to sustained high occupancy levels at Dubai Investments Park and the strategic acquisition of additional assets by Al Mal Capital REIT. These factors collectively enhanced the company's recurring income streams.
As of December 31, 2024, Dubai Investments' total assets grew to AED 22.10 billion, up from AED 21.44 billion at the end of 2023. The equity attributable to owners stood at AED 14.11 billion, reflecting the company's solid financial foundation. The net debt to total attributable equity ratio was reported at 21.9%, indicating a strong liquidity position.
In line with its commitment to delivering value to shareholders, the Board of Directors has proposed a cash dividend of 18% for the year 2024. This proposal underscores Dubai Investments' focus on enhancing shareholder returns while maintaining a robust financial position and sustainable growth trajectory.
Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments, commented on the results, stating that the company's strong financial performance in 2024 has laid a robust foundation for sustained expansion and long-term growth. He emphasized that Dubai Investments remains focused on accelerating growth by actively evaluating investment opportunities across the MENA region and other areas, exploring strategic divestments, and assessing select group companies for potential initial public offerings .
Looking ahead, Dubai Investments plans to launch several mixed-use real estate projects within the UAE. The company also aims to optimize its portfolio by exploring strategic divestments and assessing select group companies for potential IPOs. These initiatives are aligned with the company's strategy to capitalize on emerging opportunities and drive long-term sustainable growth.
The real estate sector in Dubai has been experiencing a significant upturn, with residential sales reaching AED 120 billion in the third quarter of 2024. This surge is driven by increased demand from residents worldwide, including notable investments from European and North American buyers. The introduction of the Golden Visa program has encouraged long-term residency, while high rental yields continue to attract expatriates. Property prices have risen over 147% in the past five years, reflecting the sector's robust growth.
Dubai Investments' strong performance is indicative of the broader economic resilience observed in the UAE. The Dubai International Financial Centre reported a revenue of AED 1.78 billion in 2024, marking a 37% increase from the previous year. This growth highlights Dubai's attractiveness as a global business hub, offering a conducive environment for companies seeking stability amidst global economic and geopolitical uncertainties.
However, challenges persist in the region. DP World, a Dubai-based ports and logistics operator, reported a 28% decline in annual profit, down to $591 million from $820 million the previous year, attributed to rising finance costs. Despite a 9.7% increase in overall revenue to $20 billion due to improved performance in its ports and terminals division, the company faces a challenging outlook amid global trade and geopolitical uncertainties. The reemergence of Houthi attacks on shipping routes in the Red Sea region is causing disruptions, affecting logistics and increasing costs.
In contrast, Dubai Investments' diversified portfolio and strategic initiatives have positioned the company to navigate these challenges effectively. By focusing on high-demand sectors such as real estate and maintaining strong liquidity levels, the company has demonstrated resilience and adaptability in a dynamic economic landscape.
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