Dubai Holding, the investment firm controlled by ruler of Dubai, said its operating arm Dubai Holding Commercial Operations Group (DHCOG), has recorded an 8 per cent year-on-year increase in its 2016 net income and 16 per cent jump in total revenues for the period.

Net profit reached AED6.32bn ($1.72bn) from AED5.83bn reported at the end of 2015, as all of the business segments contributed to bottom-line expansion, the company said in statement, adding that the total revenues rose to AED16.84bn at the end of last year against AED14.53bn a year earlier.

The statement also announced departure of Dubai Holding’s chairman Mohammad Abdulla al-Gergawi, but did not name a successor.

After having put the company on a rapid growth path, Al-Gergawi said that his mission as chairman of Dubai Holding has come to an end, paving the way for another talented person to take over, dedicating his full time and effort to his duties in the government.”

“We started at Dubai Holding 18 years ago in rented offices with used furniture and with a small loan. Today, the group businesses and projects operate in 21 countries, with 22,000 employees working in various sectors,” Al-Gergawi said adding that group assets today exceed more than AED100bn but it started at a small scale with remote piece of land in the emirate and an AED200m loan.

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, who is also the Prime Minister of the UAE, commended the outgoing chairman and said that the performance of the company has been exceptional since its inception. “Dubai Holding added real value to our national economy, and Al-Gergawi is a role model for responsible, successful and sincere officials.”

Dubai Holding, the investment conglomerate which invests on behalf of the emirate at home and abroad, did not give the breakup of individual business units of DHCOG revenues or profitability. The operating arm controls some of the best businesses in Dubai including free zones operator Tecom, hospitality giant Jumeirah and developer Dubai Properties Group (DPG).

Operational performance

The company said that Tecom, operated Dubai Internet City and Dubai Outsource City added 175 new companies in 2016, including Visa, Samsung Electronics, Huawei and Accenture, amongst others. Dubai Media City, Dubai Studio City and Dubai Production City added 165 new companies collectively, while Dubai Knowledge Park and Dubai International Academic City together added 40 new businesses last year.

Dubai Design District welcomed 150 new companies, reaching a total of 415 registered businesses in the district, which comprises of 114 local companies; 291 multinational companies; and 82 Emirati entrepreneurs. It is also home to top architectural firms, including Benoy, Foster & Partners, and Zaha Hadid.

The company also launched Dubai Wholesale City, the largest global wholesale hub, which is set to span over 550 million square feet with an expected development cost of AED30bn, according to the statement, which said that wholesale city has signed a partnership agreement with China Commodity City Group to facilitate mutual trade and investment activities with a focus on developing wholesale e-commerce.

DPG last year launched Marasi Business Bay with a total investment cost exceeding AED1bn. The development will feature the region’s first-ever water homes and the longest promenade. The company also developed Dubai Water Canal’s first phase with an investment of AED1bn. The company also launched five new projects, and handed over 3,000 new units. It’s commercial and residential leasing portfolio recorded 90 per cent occupancy rates, while its facilities management business grew by 8 per cent after it expanded in Abu Dhabi market, Dubai holding said in the statement.

Jumeirah Central was among the notable launches of Dubai holding last year. Located on Sheikh Zayed Road, Jumeirah Central is an AED73bn urban mixed-use city district which will comprise 278 buildings and a combined 47 million square feet of gross floor area.

As part of its global expansion plans, hospitality firm Jumeirah Group it signed management contracts for luxury hotels in Turkey and China. Jumeirah owns and manages 21 hotels and resorts in nine different destinations across eight countries.