Dubai Investments achieves AED108 million profit through private equity divestments

DUBAI: Dubai Investments, DI, has achieved unprecedented success through its private equity subsidiary Masharie, achieving profits of AED 107.68 million through divestments in nine subsidiaries over the years.

Masharie, which has acquired a total of 23 companies since its incorporation in 1998, currently owns 12 companies in its portfolio, representing a wide array of sectors including aluminium extrusion, architectural aluminium designs, rubber, interior fit-outs, drivers’ training centres, switch gears and laboratory furniture, among others.

Masharie enjoys a major share of the regional private equity sector, and is currently aggressively pursuing growth and investment opportunities for 2014 with demography-linked sectors topping the priority lists, amidst optimistic business sentiment across other industries.

Masharie’s divestments over the last nine years include Metrofile Middle East, Emirates Explosives, Gulf Printing ‘&’ Publishing, Thermoset Technologies, Stromek Emirates Foundations, Al Arif Contracting Co. and Power Factor Facilities Management LLC, Anchor Allied Factory Limited and Inter Chemi International Limited, with return on investments varying between 100% and 600%.

Following these successful private equity investments, the company believes that the GCC offers a strong growth opportunity as robust macro-fundamentals continue to drive the region’s economic road to recovery, fuelled by Dubai’s successful bid to host Expo 2020 and a resurgent stock market across the region.

Khalid Al Jarwan, General Manager of Masharie LLC, said, “Over the last 16 years, Masharie has achieved phenomenal success with its private equity investments. The profits and growth at DI have been driven by our pioneering vision for Masharie, and a result of strategic and calculated acquisitions and exits from various businesses at appropriate times, and we achieved profits of over AED 108 million through divestments.” Al Jarwan continued, “We are negotiating some direct investments opportunities in growing sectors which will further accelerate our profitability. Among these, we are constantly assessing new investment prospects in the financial industry, such as equities, and also targeting investments in bonds.