Dubai Investments profit falls 30%

Dubai Investments posted a 30 per cent drop in second-quarter net profit on Tuesday and the UAE conglomerate said it hopes to secure additional financing for expansion in the second half of the year.

The company, in which sovereign fund Investment Corporation of Dubai (ICD) owns an 11.5-per cent stake, reported a net profit of Dh137.9 million ($37.5 million) for the second-quarter according to Reuters calculations, compared with Dh196.3 million in the same period in 2010.

Reuters calculated the net profit figure from previous financial statements. Its first-half net profit was Dh239 million, the company said in a statement on Tuesday.

Dubai Investments is involved in several sectors ranging from real estate to manufacturing. Its manufacturing business faced setbacks due to regional unrest in key markets like Libya, Syria and Yemen, the company said last month.

It has so far secured only a quarter of the Dh1.2-billion loan it wanted to raise for expansion purposes.

"Negotiations for additional facilities are at advanced stages and expected to be concluded in the second half of the year," said Chief Executive Khalid Bin Kalban.

Dubai Investments also put off for at least two months a planned initial public offering for its private equity unit Masharie.

Shares of the company ended 1.9 per cent lower on the Dubai stock exchange on Tuesday. The results were announced after the markets closed.

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