Waiting for the implementation of the recently-announced investment plan
DI, The leading Emirati investment company:Dubai Investments is the largest investment company listed on Dubai Financial Market (DFM). The Group is primarily involved in development of real estate for sale and leasing, contracting activities, manufacturing and trading of products in various sectors and investing in bonds, funds and equity securities. Currently, the group is managing a diversified portfolio of over 40 companies. The group operates in three main segments: Manufacturing and contracting, Investments, and Property.
Property: the growth driver of the group:
The group’s bottom-line’s performance is mainly generated from its property activity. This division includes the development of real estate projects for rental and/or sale. From one year to another, DI has been benefiting from resurgent property demand mainly on the local market. In fact, this segment’s net margin reached 95.1% by the end of 2015 vs. a net margin of 51.5%, a year earlier. For the coming years, the group’s net profit should still be dominated by incomes from the property activity. However, the property net income would be negatively impacted by a higher capex (taking into accounted the investment plan announced to build parks in several countries such as Saudi Arabia, Morocco and Angola, similar to Dubai Investments Park) to reach AED895m by the end of 2018 vs. AED1.277bn in 2015.
Is it Time to look beyond the GCC?
Recently, the management announced its attention to set up projects in Africa. The group would start investing in Angola by selecting a site for the construction of an industrial park (similar to Dubai Investments Park) with a total cost of US$20m. Besides, the group’s CEO announced that the group is in talks with a fund, which was founded in UAE two years ago with investments worth US$50m, to enter the Ethiopian market.
Besides, the group announced that it would build parks similar to Dubai Investment Parks in Morocco and KSA.
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