By: Mahmoud Gamal

Dubai - Mubasher: The total net profits of the investment companies listed on the Dubai Financial Market (DFM), and the Abu Dhabi Securities Exchange (ADX), declined by 32.7% in the second quarter of 2016.

The earnings of 6 companies reached AED 349.21 million ($95.04 million) in Q2-16, compared to AED 519.03 million ($141.27 million) in the same period last year.

Similarly, the revenues increased 1.16% to AED 1.16 billion ($316 million), from AED 1.14 billion ($310 million) Q2-15.

The decline in oil prices negatively affected the progress in real estate projects, which decreased the profits of some of the sector’s companies in the second quarter of the year, said analyst Waleed Khattab of Cape Capital.

Shuaa Capital suffered losses of AED 50.8 million ($13.8), versus a profit of AED 1.7 million ($426,000) in the same period last year.

Shuaa’s CEO attributed the losses to the constant swings in global markets, in the light of the low oil prices, and the instability in the Euro zone.

Other investment companies like Umm Al Qaiwain General, DFM, Waha Capital, and Dubai Investments, reported a decrease in Q2-16 profits, which put a pressure on the sector overall results, while revenues witnessed a noticeable increase, Waleed Khattab added.

Translated by: Moslem Ali