Investment Corporation of Dubai (ICD), the main investment arm of the government of Dubai, has reported a 19 per cent drop in its 2016 profit amid subdued economic activity and lower oil commodity prices.

ICD, which manages the government’s portfolio of commercial companies and its real estate and other investments at home and abroad, said it recorded a net profit of AED221.1bn ($6.02bn) for the financial year 2016, down from AED27.5bn recorded at the end of 2015. Net profit attributable to equity holders also slumped to AED18bn last year, a 21.4 per cent slide from a year-earlier. Revenues for the period decreased less than 1 per cent to AED176.3bn, ICD said in a statement.

The firm attributed the decrease in profitability to the impact of increased competitive pressure on yields in the transportation services segment of its portfolio.

The sovereign wealth fund, which counts Emaar Properties, Emirates Airlines, and Dubai biggest lender Emirates NBD among its portfolio companies, is vital to Dubai’s economic strategy.

ICD said its assets at the end of December 2016, however increased by 6.9 per cent to AED769.9bn from the corresponding period in 2015, primarily resulting from an increase in loans and receivables in the banking and financial services segment and its aircraft fleet upgrades.

“In 2016 the portfolio of ICD demonstrated resilience by delivering a strong operational and financial performance despite challenging market conditions,” Mohammed Ibrahim al-Shaibani, ICD’s executive director and chief executive CEO said in the statement.

“ICD remains focused on expanding its capabilities and investing in opportunities that will support long-term growth and enhance the prosperity of Dubai,” he added.