Abu Dhabi's International Holding Company said its net profit more than tripled in the first nine months of 2021 from a year ago, boosted by a two-fold increase in gains during the third quarter driven by a series of acquisitions and a strong performance across it subsidiaries.
Profit in the nine months to the end of September surged 308 per cent to Dh7.2 billion ($1.96bn) and third-quarter profit doubled to Dh2.87bn ($781.5 million). The multi-sector conglomerate's revenue leapt 297 per cent year-on-year to Dh18.31bn ($5bn) in the nine-month period, while revenue in the third quarter jumped 290 per cent to Dh8.39bn ($2.28bn), it said in a filing to the Abu Dhabi Securities Exchange, where the company's shares trade.
IHC’s strategic acquisitions strengthened its balance sheet, which reached Dh64.4bn ($17.54bn), surging 356 per cent from Dh14bn ($3.8bn) at the end of December 2020. Its total assets rose by Dh6.1bn ($1.66bn) during the third quarter.
"Our investments in the third quarter, including strategic add-on acquisitions, have driven IHC's growth and enhanced our market position and future growth trajectory. These results reflect the underlying strength of our business verticals, particularly in the construction sector, where we have expanded significantly in recent months," Syed Basar Shueb, chief executive officer and managing director of IHC, said.
"We continue to maintain a strong appetite for further expansion locally and internationally while retaining specific value creation objectives at the core of our acquisition strategy. There’s more to come for IHC growth, and I believe we have the right strategy in place to unlock the company’s full potential and create significant shareholder value.”
IHC's portfolio significantly grew in 2021 as it ramped up its investments and acquisitions across key industries. In April, it completed a 45 per cent stake purchase in Alpha Dhabi Holding, one of the fastest-growing construction companies in the Middle East. Alpha Dhabi listed on the ADX in June, helping IHC shares surge and pushing the ADX's market value past Dh1 trillion ($272.3bn) for the first time.
Last month, IHC's subsidiary Multiply Group, a holding company that invests in tech-focused scalable businesses, signed a merger agreement with Ben Suhail Group to create a beauty sector joint venture - Omorfia Group - in the UAE. Another Abu Dhabi holding company ADQ, in October bought a 50 per cent stake in IHC unit Eltizam Asset Management.
Also in October, Mr Shueb said IHC was planning to list Multiply on the ADX later this year. Another IHC subsidiary, Theta Bidco, agreed last month to take over UK events services business Arena for a recommended cash offer of Dh359m ($98m).
We continue to maintain a strong appetite for further expansion locally and internationally while retaining specific value creation objectives at the core of our acquisition strategy. There’s more to come for IHC growth
Syed Basar Shueb,
chief executive officer and managing director of IHC
IHC said that its net margin for the nine-month period stood at 39.5 per cent, an increase of 1.04 percentage points year-on-year. Gross profit margin was at 41.2 per cent, up 6.3 percentage points.
"Pragmatic business combinations, tactical acquisitions, strategic investments, rational decision-making along with the rapid growth jointly contributed to the strong growth of the diversified company for the period ended September 2021," IHC said in its report to the ADX.
"As an emirate, Abu Dhabi also has a positive fiscal outlook for 2021. IHC has played a pivotal role in helping the UAE economy to achieve growth."
IHC's portfolio includes more than 200 entities, more than 48,000 employees and operations across seven primary business segments, including real estate, healthcare, food, utilities, industrials, digital and capital. Its footprint spans across the Middle East, Europe and the Americas.
The view from The National
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
High profile Al Shabab attacks
- 2010: A restaurant attack in Kampala Uganda kills 74 people watching a Fifa World Cup final football match.
- 2013: The Westgate shopping mall attack, 62 civilians, five Kenyan soldiers and four gunmen are killed.
- 2014: A series of bombings and shootings across Kenya sees scores of civilians killed.
- 2015: Four gunmen attack Garissa University College in northeastern Kenya and take over 700 students hostage, killing those who identified as Christian; 148 die and 79 more are injured.
- 2016: An attack on a Kenyan military base in El Adde Somalia kills 180 soldiers.
- 2017: A suicide truck bombing outside the Safari Hotel in Mogadishu kills 587 people and destroys several city blocks, making it the deadliest attack by the group and the worst in Somalia’s history.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Killing of Qassem Suleimani
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The details
Heard It in a Past Life
Maggie Rogers
(Capital Records)
3/5
If you go
- The nearest international airport to the start of the Chuysky Trakt is in Novosibirsk. Emirates (www.emirates.com) offer codeshare flights with S7 Airlines (www.s7.ru) via Moscow for US$5,300 (Dh19,467) return including taxes. Cheaper flights are available on Flydubai and Air Astana or Aeroflot combination, flying via Astana in Kazakhstan or Moscow. Economy class tickets are available for US$650 (Dh2,400).
- The Double Tree by Hilton in Novosibirsk ( 7 383 2230100,) has double rooms from US$60 (Dh220). You can rent cabins at camp grounds or rooms in guesthouses in the towns for around US$25 (Dh90).
- The transport Minibuses run along the Chuysky Trakt but if you want to stop for sightseeing, hire a taxi from Gorno-Altaisk for about US$100 (Dh360) a day. Take a Russian phrasebook or download a translation app. Tour companies such as Altair-Tour ( 7 383 2125115 ) offer hiking and adventure packages.
