Dubai Investments Q3 profit drops 19.8%

UAE conglomerate Dubai Investments Company reported a 19.8 per cent drop in third quarter net profit on Monday as contract revenue and rental income fell.

The firm made a net profit of Dh213.6 ($58.17) for the three months ended September 30, down from Dh266.19 million in the same period last year it said in a statement.

Contract revenue fell 18.6 per cent to Dh172.99 million in the quarter while rental income dropped 15.9 per cent.

Dubai Investments made a net profit of Dh196.3 million in the second quarter, down from Dh287 million a year earlier.

The firm, in which the emirate's sovereign wealth fund Investment Corporation of Dubai has a stake, derives most of its revenues from the UAE and other Gulf Arab countries.

It competes with developer Emaar Properties and Deyaar in Dubai's residential sector and launched its first residential project, Ritaj, in 2006.

It has investments in companies such as Glass, Dubai Investments Industries (DII), Gulf Investments Park (DIP) and DI Real Estate Company (DIRC).

On September 1, the company transferred 50 percent of its stake in subsidiary Syscom Emirates to a third party but the dilution of its stake did not have any material impact on the company's earnings, it said.

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