Diversified conglomerate Dubai Investments (DI) is expected to report net profit of more than Dh1 billion for the first half of 2008, which is an increase of 24 per cent over the Dh803 million profit in the corresponding period last year, according to a top company executive.
The financial results for the first half are expected to be announced today.
"Overall the market has been very good, with our businesses having performed better. Moreover, we are a balanced company and are not just relying on real estate revenues. We expect net profits for the full year to reach Dh2 billion," Khalid Kalban, Chief Executive, Dubai Investments, told Emirates Business.
According to the company's website, the net profit of Dubai Investments at the end of 2007 was Dh1.5b, 52 per cent higher than the net profit of Dh989m for 2006.
Kalban said the company will not be looking to launch a sukuk issue anytime in the near future. "We looked at the sukuk option in the last four to five months, but the international credit crunch and liquidity is not encouraging us to take this step. It is more flexible for us to go to commercial banks to borrow," he added.
In July, DI's wholly-owned subsidiary Emirates Glass announced the start of construction of its Dh175m plant and headquarters. The new premises will also house Lumiglass Industries, another subsidiary.
Encouraged by the construction boom in the Gulf region, the company plans to expand its reach to both regional and global markets. Emirates Glass reported 106 per cent increase in net profits last year while its overall output increased 30 per cent during the same period.
Emirates Glass had increased its coating capacity to 3.7 million square metres of flat glass products per annum by installing a new glass coating line at a cost of Dh100m last year.