Wednesday, 28 July 2010 at 15:41, Reuters, Dubai
UAE conglomerate Dubai Investments Co posted a 32-per cent drop in second quarter net profit on Wednesday, after being hit by a loss on the fair value of its investments.
The firm made a net profit of Dh196.3m ($53.46m) for the three months to June 30, it said in a statement.
That was down from Dh287m a year earlier.
It incurred a Dh49.7m loss on the fair valuation of its investments during the quarter compared with a Dh53m gain for the same period in 2009.
Dubai Investments, in which the emirate's sovereign wealth fund Investment Corporation of Dubai has a stake, derives most of its revenues from the United Arab Emirates 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.
The firm plans to further expand in the Gulf region, its chief executive said in June.
It has investments in companies such as Glass LLC, Dubai Investments Industries (DII), Gulf Investments Park (DIP) and DI Real Estate Company (DIRC).
Dubai's once-booming property sector has been hit hard by the global financial crisis as developers slow or cancel projects and jobs are slashed.
Property prices have been under pressure since the onset of the financial crisis and a slump in oil prices which ended a six-year economic boom in the Gulf region.
Shares of the company closed up 0.6 per cent. The results were announced after the close.
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