Divestment of stake in pharmaceutical subsidiary boosts results for the investment firm
Dubai Investments has posted net profits of AED805m ($219m) in the first half of 2014, an increase of 118 per cent on the net profit of AED370m recorded for the same period in 2013.
Total consolidated income reached AED1.8bn in the first six months of the year, compared with AED1.3bn for the same period last year.
The Dubai-based investment company boosted its profits by divesting its 66 per cent equity stake in its wholly owned pharmaceutical subsidiary, Globalpharma, to an investor group led by France-headquartered Sanofi earlier this year.
The divestment contributed to a profit of AED472m.
Dubai Investments also concluded a $300m sukuk [Islamic bond] issuance in the first quarter of the year in favour of Dubai Investments Park Company.
The group owns about 35 subsidiaries and joint ventures in sectors such as construction materials, pharmaceuticals, real estate management and property development. The real estate sector is becoming a key focus for the company.
Dubai Investments has a strong focus on developing its land banks and strengthening its real estate portfolio. The UAE real estate industry is in the midst of a robust growth and there is huge potential for growth in the sector, said Khalid bin Kalban, managing director and CEO at the firm in a note sent to MEED in mid-July.
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