UPDATE 1-Dubai Investments Q2 net profit drops 54 pct

* Profit 63.4 mln dirhams vs 138.3 mln dirhams

* Q2 revenue 630.3 mln dirhams vs 728.8 mln (Adds details)

DUBAI Aug 5 (Reuters) - United Arab Emirates conglomerate Dubai Investments, which has been looking at opportunities to divest some of its businesses, posted a 54 percent decline in second-quarter net profit on Sunday as revenue dropped.

The company, in which sovereign fund Investment Corp of Dubai (ICD) owns 11.5 percent, reported a net profit of 63.4 million dirhams ($17.3 million) in the second quarter compared to 138.3 million dirhams in the same period in 2011, according to the quarterly balance sheet released on Dubai's bourse.

Revenue for the quarter dropped to 630.3 million dirhams from 728.8 million dirhams, a 13.5 percent fall. The company posted a gain on the fair value of investment properties of 28.3 million dirhams, compared to 113.1 million dirhams in the second quarter of 2011.

Dubai Investments, whose manufacturing business was hit by political unrest in the Gulf Arab region, said earlier this year that it was eyeing an exit from some of its businesses and was reviewing opportunities.

The company, which has interests in several sectors including property and manufacturing, had total assets worth 13.6 billion dirhams at the end of the second quarter, Sunday's statement showed.

The conglomerate has said it wants to raise up to 1 billion dirhams this year through the issue of sukuk, or Islamic bonds, to finance expansion of some manufacturing units and repay debt. ($1 = 3.6730 UAE dirhams) (Reporting by Praveen Menon; Editing by Andrew Torchia)