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The National
6 days ago
- Business
- The National
Du on pace to surpass record 2024 income on 25% Q2 profit jump
Emirates Integrated Telecommunications Company, the Dubai operator known as du, reported a more than 25 per cent annual jump in its second-quarter profit, keeping it on track to beat its record 2024 income. Net profit for the three months to the end of June climbed to Dh727 million ($198 million), the company said on Thursday in a regulatory filing to the Dubai Financial Market, where its shares trade. Net income for the first six months of the year rose to nearly Dh1.45 billion, a 22.4 per cent year-on-year increase. The quarterly boost pushed the company's first-half income this year to more than half of the Dh2.49 billion profit it reported for 2024, the company said. Revenue for the second quarter rose 8.6 per cent to Dh3.9 billion, while earnings before interest, taxes, amortisation and depreciation, a reliable measure of profitability, leapt 16.4 per cent to Dh1.83 billion. For the first half of 2025, du reported revenue rise of 8 per cent to Dh7.75 billion, while its Ebitda on an annual basis jumped 15.7 per cent to Dh3.65 billion. Du's board of directors has also approved a cash dividend of Dh0.24 per share for the first half of the year, up 20 per cent annually, the company said. Du on Thursday also updated its full-year earnings guidance, with revenue growth pegged at between 6 per cent and 8 per cent, and an Ebitda margin of between 45 per cent and 47 per cent. 'Our strong performance in the first half of 2025 reflects the effective delivery of our focused strategy, underpinned by a favourable economic environment and sustained commitment to business excellence," said Malek Al Malek, chairman of du. Du has attributed its "positive momentum" to the continued growth momentum in the UAE economy, which also helped it boost its mobile subscriber numbers by nearly 11 per cent on an annual basis to 9.1 million, during April-June period. Fixed-line subscribers jumped by 12 per cent to approximately 706,000, the company added. "We continue to ensure disciplined capital allocation and sustained long-term value creation for our shareholders," Mr Al Malek added. Du is seeking aggressive expansion and has boosted its operations and services over the past year as market dynamics change with emerging technologies, including AI, the cloud and big data. Last October, du unveiled du Tech and du Infra – in a major shake-up to its business-to-business operations aimed at addressing growing demand for digital transformation services in the UAE. The introduction of the sub-brands will allow the company to dedicate more resources to their respective business segments and is the next step in the company's transformation and expansion, chief executive Fahad Al Hassawi told The National at the time. Du is also open to expanding its non-core portfolio outside the UAE, particularly in adjacent technologies that would include data centres, financial technology and other information and communications technology segments, he added. The company's second-quarter financial results "showcased impressive performance, fuelled by the meticulous execution of our strategy and consistent growth across every aspect of our operations", Mr Al Hassawi said in Thursday's earnings report.
Al Etihad
17-07-2025
- Business
- Al Etihad
UAE stock markets hit new peaks as DFM index is up by a massive 2.2%
17 July 2025 19:12 A. SREENIVASA REDDY (ABU DHABI)The UAE stock markets continue to scale new peaks on Thursday as the Abu Dhabi Securities Exchange's general index (FADGI) rose 0.650% and the Dubai Financial Market (DFM)'s index (DFMGI) was up by a massive 2.154%.The optimism over the second-quarter earnings appears to be a significant driving force behind the UAE market rally. The ADX main index closed at 10,242.49, with its market capitalisation reaching Dh3.132 trillion. The main market's market cap too crossed the Dh1 trillion Abu Dhabi Bank (FAB), Multiply Group and Aldar led the rally with their share prices rising 3.5%, 3% and 1.6%, respectively.A total of 37,057 trades were executed, involving 433 million shares with a combined value of Dh1.60 top gainers on the ADX included Commercial Bank International (+10.11%), Bank of Sharjah (+8.11%) and UAQ National Bank (+6.4%).Notable decliners were Oman and Emirates Investments (-10.00%) and National Co. for Building Materials (-4.54%).The DFM's general index crossed the 6,000 milestone to reach 6103.09 with its market cap well above the Dh1 trillion mark.A total of 16,914 trades were executed on the DFM, involving 327 million shares with a combined value of Dh967 prices of 22 companies rose, 20 declined, and 11 remained stocks — Emirates NBD and Dubai Islamic Bank — led the rally with a 4% and 1.9% surge, respectively. Air Arabia rose 3.9% as Air Arabia Abu Dhabi has decided to increase its operational capacity by 40% following a new opportunity in the Abu Dhabi market. Realty giants — Emaar and Emaar Developments — saw a spike of over 2%. Stock Markets Continue full coverage
Al Etihad
16-07-2025
- Business
- Al Etihad
UAE markets continue rally as DFM crosses Dh1 trillion mark
16 July 2025 21:18 A. SREENIVASA REDDY (ABU DHABI)The UAE stock markets continued to soar to new peaks as the Dubai Financial Market crossed Dh1 trillion in market capitalisation. The Abu Dhabi Securities Exchange (ADX)'s general index (FADGI) rose by 0.253% to close at 10,176.33. First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB) led the rally with their share prices rising 2.6% and 1.8%, respectively. A total of 33,525 trades were executed, involving 410 million shares with a combined value of Dh1.70 billion. The total market capitalisation of all companies listed on the ADX stood at Dh3.119 trillion. Other top gainers on the ADX included Oman and Emirates Investment (+9.24%), UAQ Investments (+4.7%) and Bank of Sharjah (3.7%). Notable decliners were Al Khaleej Investments (-9.03%) and Abu Dhabi National Insurance (-4.44%). The DFM continued its rally with its general index (DFMGI) rising by 1.021% to close at 5,974.43. According to Kamco Invest, the combined market capitalisation of all DFM-listed companies reached Dh1.009 trillion at the end of Tuesday trading. The live updates on the combined market cap are not provided by the DFM, unlike ADX. But at the end of trading on Wednesday, the market cap could have risen substantially from Dh1.009 trillion mark because of a strong market rally. A total of 16,112 trades were executed on the DFM, involving 419 million shares with a combined value of Dh988 million. Share prices of 27 companies rose, 20 declined, and eight remained unchanged. Banking stocks — Emirates NBD and Dubai Islamic Bank — led the rally with a 3.7% and Dh2.2% surge, respectively. Air Arabia rose 1.1% as Air Arabia Abu Dhabi has decided to increase its operational capacity by 40% following the closure of Wizz Air Abu Dhabi. Overall, it is the banking stocks which are leading the rally in the UAE markets in anticipation of good second quarter results.
Arabian Post
16-07-2025
- Business
- Arabian Post
UAE Equity Market Gathers Pace Amid Saudi Caution
Momentum across the United Arab Emirates' equity capital markets is building as the second half of 2025 begins, while Saudi Arabian firms preparing share issuances are confronting investor concerns over lofty valuations. May's launch of a residential real estate investment trust on the Dubai Financial Market reignited market sentiment after a lull in listing activity during the previous year. Investor interest is intensifying ahead of expected deals in the UAE. Among the most notable, ALEC Engineering & Contracting LLC has been conducting investor roadshows for a potential listing slated after the summer, reflecting growing confidence in the market's appetite for new offerings. The company, owned by the Investment Corporation of Dubai, is estimated to aim for an IPO of around US$500 million and forms part of a broader government-led push to privatise state assets within ten government-linked companies. The surge in UAE listings follows Dubai Holding's Residential REIT, which sought US$487 million through a 12.5 per cent stake sale in mid-May, marking the emirate's first listing since late 2024. That deal leveraged strong demand for yield-generating property assets amid a post-pandemic real-estate upswing, supported by residency reforms and significant foreign investment. ADVERTISEMENT Market performance across the Gulf supports this positive outlook. UAE stock indices have reached multi-year highs, buoyed by rising oil prices and upbeat macroeconomic signals. On 3 July, non-oil private sector growth, along with progress in global trade deals, pushed Dubai's index to a 17-year peak, while Abu Dhabi and Qatar also recorded solid gains. A separate rally on 11 July saw Dubai's key market edge slightly higher, driven by the real-estate and banking sectors, as Brent crude held close to US$69 per barrel. Despite these positive signals, Saudi Arabia faces more cautious sentiment. Companies considering equity offerings there are encountering investor unease over valuations, prompting them to reassess their timing and pricing strategies. At the same time, broader policy shifts—such as allowing UAE and GCC residents direct access to Tadawul, the main Saudi bourse—are aimed at boosting liquidity across the region. Nevertheless, Saudi issuers remain under scrutiny amid cautious regional investor sentiment. Activity remains muted in other segments. Gulf markets overall closed higher on 15 July, with Dubai and Abu Dhabi gaining ground on US inflation data and trade developments. Saudi Arabia's benchmark fell modestly that day, impacted in part by sluggish performances from Al Rajhi Bank and Aramco. Analysts highlight that UAE real-estate-linked offerings, including REITs and contractor IPOs, benefit from strong underlying fundamentals. The 210,000 new housing units expected in Dubai through 2026 may exert pressure on property prices, but analysts remain optimistic that transparent, regulated offerings will sustain investor trust. Looking ahead, the UAE pipeline features projects across construction and real estate services. Arabian Construction Company, another sector player, is understood to be progressing with its own planning. Talks involving up to 400 potential candidates for listing are reportedly underway, signalling a widening window of opportunity. This evolving landscape reflects a broader Gulf trend. Gulf stock markets have benefited from easing inflation pressures in the US, central bank moves abroad, rising oil prices and reduced concerns over trade conflicts. Yet investor behaviour remains anchored to macroeconomic stability and the strength of valuations. With the UAE's equity capital markets gathering momentum—especially in sectors tied to real estate and government reform— issuers are capitalising on renewed interest. Saudi Arabia, while opening up to regional investors, appears to face a more cautious reception as its issuers weigh valuation expectations and broader economic signals.
Arabian Post
07-07-2025
- Business
- Arabian Post
Drake & Scull Charts New Course with Arabian Hills Venture
Arabian Post Staff -Dubai Drake & Scull International PJSC has secured two infrastructure contracts worth more than AED 1 billion in Dubai's sprawling Arabian Hills development, marking its first foray as a real estate developer. The contracts cover infrastructure works in Area 10 and Area 05, including power installations, street lighting and a sewage treatment plant. The project is scheduled for delivery by the end of 2027, with expected profit margins of 8–10 per cent. This shift reflects a strategic diversification. While DSI has traditionally focused on mechanical, electrical and plumbing contracting, the Arabian Hills initiative positions the company as a developer in its own right. The contracts will be funded through existing cash reserves and bank facilities, as confirmed in a filing to the Dubai Financial Market. ADVERTISEMENT The Arabian Hills project spans an immense 224 million sq ft, featuring both residential and commercial zones. DSI's roles entail foundational infrastructure—roads, utilities and public amenities—across two major precincts. Sun Valley will receive infrastructural services and power systems, while Park Vista will also benefit from a sewage treatment facility. Landowner Arabian Hills Investment and Real Estate Development describes the venture as a 'transformative development' with a focus on innovation and sustainability. DSI's entry as a developer aligns with the broader regional real estate trend. Dubai's market is experiencing a notable uptick, with developers diversifying amid stronger investor sentiment and rising demand. Industry sources suggest that entrants with established construction capabilities, like DSI, can leverage vertical integration to enhance margins and control over delivery schedules. The timing of this move follows DSI's high-profile financial turnaround. The company emerged from a court-approved restructuring process involving a 90 percent debt write-off and issuance of mandatory convertible sukuk for the remaining 10 percent. A capital increase exceeding AED 450 million underpinned the reforms, enabling DSI to resume trading on the Dubai Financial Market in late May 2024. Restructuring milestones include: Approval of a court-ordered plan involving debt write-off and sukuk conversion. A AED 600 million capital hike and listing reinstatement, facilitating access to new contracts. Clearance of AED 4.18 billion in historical debts, with share capital raised by AED 450 million. Following restructuring, DSI rapidly bid and won significant contracts, including MEP projects and large-scale infrastructure builds. A notable contract includes the AED 180 million agreement to construct a 38‑storey residential tower in Jumeirah Village Circle for Reef Real Estate. Industry analysts note that DSI's revival is a landmark in UAE's corporate restructuring landscape. Its process, executed under the onshore UAE bankruptcy law, sets a precedent for other distressed firms. The successful debt-to-equity and sukuk conversion arrangements are expected to influence future corporate reorganisations. Financially, the Arabian Hills contracts are projected to be revenue-recognised on a percentage-of-completion basis. DSI forecasts 8–10% margins, signalling confidence in its integrated delivery model. DSI's CEO Muin El Saleh emphasised the contracts as a major milestone in the company's growth and sustainability roadmap. He described the development as a reaffirmation of their 'unique capabilities' and their standing as a strategic partner for sustainable urban developments. Arabian Hills MD Salem Al Muheiri welcomed DSI's involvement, citing trust in its track record to meet high standards on time and within budget. With DSI now embracing a developer's role, the move brings vertical integration into sharper focus. Analysts warn that successful execution will be critical; infrastructure delivery and utilities construction carry significant logistical and regulatory complexity. However, DSI's strengthened financials and reclaimed market position give it a sturdy platform from which to venture.
