Dubai’s Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund, has marked a significant milestone with a 68% surge in its full-year profit for 2023. This impressive growth, leading to a record net profit of AED 60.8 billion (USD 16.56 billion), is primarily attributed to the robust performance of its transportation and banking sectors.

Dubai's ICD Sees Record

ICD’s transportation business saw a staggering 119% increase in profits, while its banking and financial services enjoyed a 69% boost. This surge is reflective of the strong economic momentum in the region, underscoring Dubai’s strategic importance as a financial and commercial hub.

ICD’s managing director, Mohammed Ibrahim Al Shaibani, highlighted the increased competitiveness and improved liquidity across the portfolio, which contributed to these record-breaking results. He also noted that the fund’s real estate and hospitality sectors performed well, although gains were somewhat offset by lower commodity prices affecting oil, gas, and aluminium production.

In terms of revenue, ICD saw a 16% rise to AED 310.2 billion (USD 84.48 billion), driven by higher passenger traffic in transportation and growth in banking assets alongside increased interest rates. The fund’s assets grew by 12%, reaching AED 1.32 trillion (USD 359 billion), setting a new record.

The fund, founded in 2006, serves as the principal investment arm of the Dubai government, with significant holdings in key enterprises like Emirates Group, Emirates NBD, Emaar Properties, and the Emirates National Oil Company (ENOC). ICD recently rebranded, adopting a new logo to reflect its dynamic approach and commitment to growth.

Additionally, Dubai’s strategic initiatives include the establishment of the Dubai Investment Fund to channel investments into vital projects, holding stakes in recently privatized entities such as DEWA, Salik, and Dubai Taxi Company. This broad strategy aims to fortify Dubai’s economic resilience and its global investment landscape.

Overall, ICD’s remarkable financial performance in 2023 underscores the effective management of its diversified portfolio, the strong regional economic conditions, and Dubai’s proactive economic policies. This success story not only highlights ICD’s pivotal role in Dubai’s economy but also its potential for future growth and expansion in various sectors. Dubai’s sovereign wealth fund, the Investment Corporation of Dubai (ICD), reported a 68% increase in 2023 profit, reaching Dhs60.8bn. The growth was driven by a significant rise in transportation and banking sectors. The fund’s assets and equity also hit record highs, despite lower commodity prices impacting some sectors.