54.2 billion dirhams of capital invested in listed transport companies

54.2 billion dirhams of capital invested in listed transport companies

Total capital invested by companies operating in the transport sector and services listed in the local capital markets increased by 2% to 54.2 billion dirhams at the end of last year compared to 52.9 billion dirhams by the end of 2016 , According to a recent study by the company «Truth» economic consulting.

Reda Mosallam, Managing Partner of “Truth” said, The companies of transport and services sector listed in the Dubai and Abu Dhabi Stock Exchanges accounts for 39% of the total non-oil GDP of the transport sector and services in the country. The transport and services sector accounts for about 12.5% of the total. Non-oil GDP for fiscal year 2017.

He pointed out that the GDP of the transport and services sector is one of the most important sectors of the non-oil GDP in the country for the fiscal year 2017, amounting to about 138.8 billion dirhams compared to about 131.4 billion dirhams for the fiscal year 2016, an increase of 7.4 billion dirhams representing an average growth rate of To about 5.6%.

Recall that, the country’s non-oil GDP for the fiscal year 2017 is about 1.1 trillion dirhams compared to about one trillion dirhams for the fiscal year 2016, an increase of about 58.3 billion dirhams.

The value of non-current assets (fixed assets) reached AED 16.3 billion at the end of last year, an increase of AED 604.3 million compared to AED 15.7 billion at the end of 2016, an increase of 4%.

The value of non-current assets (fixed assets) reached AED 16.3 billion at the end of last year, an increase of AED 604.3 million compared to AED 15.7 billion at the end of 2016, an increase of 4%.

The current liabilities of all listed transport companies decreased by AED 715.8 million at the end of 2017 compared to the year 2016 to AED 7.7 billion and decreased by 9% to AED 7 billion due to a decrease in accounts payable during 2017.

According to the study, shareholders’ equity (capital + reserves + profits) in the transport and service companies amounted to AED 35.7 billion by the end of 2017, an increase of AED 2.5 billion from the end of 2016. This increase is due to the increase in reserves in various forms and the accumulated profits as well as the capital of these companies during 2017 compared to 2016.

The transport & services companies listed in Abu Dhabi and Dubai Securities and Exchange markets recorded steady growth in their total revenues from the current activity at the end of 2017 compared to 2016 with a slight decrease of AED 70.7 million, reaching AED 16.1 billion at the end of 2016 and reaching AED 16 billion by the end of 2017.

The study clarified that in light of the decline in revenues, Transport and services companies witnessed a decline in total direct costs at the end of December 2017 compared to 2016 at AED 10.9 billion and decreased by AED 100.9 million to AED 10.8 billion by the end of 2017.

As well as general, administrative and sales expenses decreased by the end of 2017 to reach 2.2 billion dirhams, a decrease of 22.2 million dirhams compared with the end of 2016, amounting to 2.2 billion dirhams.

On the net profit of listed companies, Abu Dhabi and Dubai Financial Services posted net profits of AED 3.9 billion at the end of 2017, an increase of AED 1.4 billion compared to AED 2.5 billion at the end of 2016.

The study showed that the average rate of trading for transport and service companies in the country reached 1:2.18. This means that the companies operating in the transport and services sector have increased liquidity. This indicates that the typical ratio of trading in this type of activity is 1: 1.5. Means that these companies have the ability to face the risks of paying off sudden obligations without having to liquidate fixed assets or obtain new loans.

The study showed that the ratio of return on capital in companies operating in the transport and services sector reached 20% on average. The study also affirmed that the ratio of return on shareholder’s equity (capital + reserves + profits) in the transport and services companies registered in Abu Dhabi and Dubai markets averaged 9% The percentage of return on the total money invested by the transport and service companies in the country was 6% on average. The ratio of operating costs to total revenues from the current activity of transport and service companies was 68%. The ratio of general, administrative and sales expenses to the revenues of the listed transport and services companies was 14%.

The expressed ratio of net profit margin of companies operating in the transport sector and services registered in the Abu Dhabi and Dubai markets was about 20%, indicating the lower costs associated with the revenues of these companies in general.

The study included 13 listed companies on the country markets. six companies in the DFM, and they are: Aramex, Gulf Navigation Holding, Amanat Holding, Air Arabia, AL Firdous Holdings & Tabreed. And seven companies from the Abu Dhabi Securities Exchange : Abu Dhabi Aviation, Emirates Driving Company, Gulf Medical Projects Company, Abu Dhabi National Hotels, Fujairah Building Industries, National Corporation for Tourism & Hotels and National Marine Dredging Company.

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