DUBAI: The flagship company in the ruler of Dubai’s personal business empire increased profits sixfold in 2012, benefiting from cost cuts and a recovery in the emirate’s property market.
Dubai Holding Commercial Operations Group’s (DHCOG) net profit rose to Dh1.2bn ($326.7m) from Dh204m in 2011, it said in a statement yesterday on the Nasdaq Dubai bourse, where its bonds are traded.
Impairment charges dropped to just Dh7m from Dh2.4bn in 2011, said the company, which has booked billions of dollars of writedowns on its real estate business since Dubai suffered a corporate debt crisis in 2009.
Revenues at DHCOG, the main business unit of Dubai Holding rose 3.8 percent to Dh9.2bn. Dubai’s economic recovery has been helped by its role as a tourism and business hub for the region and its strategic location between Europe, Africa and Asia, and a pick-up in residential sales has boosted the property market.
Revenues from property sales, rental and hotel occupancy contributed to the increase in net profit, the company said. As well as property division Dubai Properties Group, DHCOG incorporates hotels group Jumeirah, business park TECOM Investments and Emirates International Telecommunications.
DHCOG had a cash balance of Dh1.7bn at the end of 2012 after it repaid a $500m bond.
Reuters
