The value of holdings of Investment Corporation of Dubai (ICD), the investment arm of the emirate, has substantially increased during the year to reach about Dh72 billion when computed on October 27 trading price of the listed companies in the portfolio.

ICD has two investment portfolios, one that of listed companies and the other made up of unlisted firms.

The valuations of the unlisted companies have been furnished by ICD through the prospectus.

Thus while the portfolio of listed companies is valued at Dh27.714bn as of October 27, the valuation of the unlisted companies has been accepted as Dh44.067bn.

The prospectus has stated that the market cap of the ICD's listed companies as of December 31, 2008 was Dh17.153bn. This shows that the portfolio value of ICD's listed companies has increased by more than Dh10bn or about 62 per cent during the year.

While the largest contributor to the listed companies' portfolio with Dh12.443bn, is Emirates NBD, which is owned 55.6 per cent by ICD, the second largest is Emaar Properties at Dh8.692bn as the company is owned to the extent of 29.4 per cent by ICD. The other firms in this portfolio include Dubai Islamic Bank (valued at Dh3.218bn), Commercial Bank of Dubai (Dh1.115bn), National Bank of Fujairah, Union National Bank and Dubai Investments. The unlisted companies in the portfolio include Emirates Group (including Dnata), Dubai Aluminium Company (Dubal), Dubai World Trade Centre (DWTC) and Emirates National Oil Company (Enoc), where ICD holds 100 per cent. Other firms are Borse Dubai, Noor Islamic Bank and Dubai Cable Company, where ICD's ownership is 60 per cent, 25 per cent and 50 per cent respectively.

While Emirates Group is valued at Dh18.5bn, Dubal's valuation has been estimated at Dh15.323bn. The other valuations are DWTC (Dh7.346bn), Enoc (Dh6.479 bn), Borse Dubai (Dh6.610bn), Noor Islamic Bank (Dh2.593bn) and Ducab (Dh878 million).

The prospectus has mentioned that ICD has incurred a mark-to-market loss to the tune of Dh8.630bn with regards to derivatives.

Dubai Government fully owns two separate holding companies – ICD and Dubai World. On formation in May 2006, a portfolio of investments previously held by Department of Finance was transferred to ICD.

"ICD's role is to supervise the investment portfolio, adding value through the implementation of best-practice corporate governance," the sukuk document said.

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