DIC profit plunges 47pc to AED348 mn on fair valuation loss

BBN Report

Recommends 8 pc cash dividend

DUBAI/March 11-2021: Dubai Investments Group, comprising its subsidiaries, has reported profit of AED347.6 million for the year ending December 31, 2020 compared with AED657.4 million in the previous year, representing a decline of 47.12 per cent.

The group has reported lower profits as compared with previous year mainly due to a loss incurred on fair valuation of investment properties in the current year as compared with a gain recorded during the previous year.

Further there was a one-off gain in the previous year on acquisition of a controlling stake in a subsidiary.

The assets of the group have increased by AED804 million and stands at AED21.76 billion as of December 31, 2020 compared with AED20.96 billion a year earlier.

Cash dividend at 8 pc

In line with its commitment to provide enhanced returns to shareholders, the board proposed to distribute cash dividend of 8 per cent to the shareholders of the company, which will absorb an amount of AED340.16 million

The group successfully launched Al Mal REIT in December 2020 and listed on DFM in January 2021. The group said it is actively looking to expand its presence in MENA with several proposals under active consideration.

The group’s businesses have largely remained resilient even in these unprecedented times. Abdulrahman Ghanem Abdulrahman Almutaiwee (seen in the picture), chairman of DIC, said the group is cautiously optimistic about 2021 and expects the global and regional economies to recover as a result of easing off of the lock-down, on-going vaccination drive and gradual improvement in consumer sentiments.

“Furthermore, measures announced by the UAE Government over the past few months and upcoming EXPO in the UAE are likely to provide the needed boost to the economic growth in the short to medium term,” Abdulrahman Almutaiwee added.

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