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UAE-listed investment firms post lower profits in Q1

UAE-listed investment firms post lower profits in Q1
Investors at Dubai's bourse (Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal

Dubai – Mubasher: UAE-listed investment companies posted a 16.5% year-on-year decline in profits during the first quarter of 2017, weighed down by the fall of revenues and difficulty in financing due to higher interest rates.

Profits reached AED 475.12 million ($129.32 million) in Q1-17, compared to AED 569 million ($154.87 million) in Q1-16.

Abu Dhabi-listed investment companies’ profits declined to AED 101.85 million in Q1-17, compared to AED 373.27 million in Q1-16.

Dubai Investments acquired 5.5% of the investment sectors’ profits after generating AED 275.50 million.

In Dubai’s bourse, DFM Company’s profits grew 19% year-on-year to AED 102.34 in Q1-17, while SHUAA Capital generated AED 24.78 million in Q1-17.

On the other hand, Gulf General Investment (GGICO) suffered losses of AED 44.6 million in Q1-17.

The investment companies’ activities were weighed down by the global economic slowdown, capital market analyst Ahmed Ismail said.

The companies' revenues declined 9.5% to AED 1.34 billion in Q1-17, compared to AED 1.48 billion in Q1-16, Mubasher’s statistics showed.

Revenues are pressured by volatile oil prices, fears over geopolitical conditions, and higher rentals in industrial zones, Ismail added.

Translated by: Julian Nabil