Apollo Global Management, one of the world’s largest alternative investment managers, has acquired a $400 million strategic equity stake in Aldar Investment Properties, a subsidiary of Abu Dhabi’s biggest listed developer Aldar Properties.
Apollo through its managed investment vehicles snapped up an 11.1 per cent minority stake in AIP after completing a Dh1.46 billion ($400m) transaction, Aldar said in a statement on Wednesday.
The acquisition is part of the previously announced $1.4bn investment by Apollo into Aldar’s transformational growth initiatives.
The transaction involved the issuance of $400m of common equity and mandatory convertible preferred equity at 100 per cent of net asset value into AIP, which houses Aldar’s core asset management business, comprising more than Dh23bn of prime property assets across retail, residential, commercial and logistics segments.
The diversified portfolio has proven highly resilient through business cycles, with occupancy standing at 92 per cent as of June 30, 2022, the company said.
“We welcome Apollo as strategic investors in Aldar Investment Properties at a time when we are building significant scale, diversification and synergies across the region’s premium platform for property ownership,” said Talal Al Dhiyebi, group chief executive of Aldar Properties.
“Apollo is a highly respected global investor, and this commitment displays strong belief in Aldar’s transformational growth agenda and reinforces the reputation of the UAE and Abu Dhabi, which is experiencing a trend of increasing capital inflows from long-term institutional investors.”
In March, as part of its investment into Aldar’s growth initiatives, Apollo invested $500m in Aldar’s perpetual subordinated notes priced at a coupon of 5.625 per cent for an initial non-call period of 15 years.
The latest transaction is a catalyst for AIP to significantly scale up its property platform through further transformative acquisitions.
“This transaction provides Apollo with exposure to prime institutional real estate in the UAE through a high-quality platform,” said Apollo's co-president Scott Kleinman.
“Apollo has confidence in the UAE’s increasingly dynamic investment landscape and the robust economic fundamentals that underpin it.”
AIP has been expanding rapidly this year. Last month, the company announced the acquisition of four prime Grade A commercial towers in Abu Dhabi Global Market, Abu Dhabi’s financial centre, for Dh4.3bn.
Aldar has committed more than Dh11bn of capital this year as part of its strategy for transformational growth, including Dh7bn plus in recurring income assets.
The developer behind Abu Dhabi's Formula One circuit and other big developments in the emirate is looking to expand both its footprint and portfolio of assets.
The property market in the UAE bounced back strongly from the Covid-19 pandemic-driven slowdown in 2021 and the trend has continued this year, as the Arab world's second-largest economy remains on a strong growth trajectory.
The UAE's economy is this year set to post its strongest annual expansion since 2011, after it grew by 8.2 per cent in the first three months of 2022 on higher oil prices and measures that stemmed the effect of the pandemic, the Central Bank of the UAE said.
Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, that is encouraging developers to launch new projects and further invest in acquiring assets to diversify their portfolios.
Aldar in recent months has been on an investment spree. Last month, the developer announced the acquisition of Ras Al Khaimah’s Doubletree by Hilton Resort and Spa Marjan Island, as well as an adjacent beachfront development plot for Dh810 million.
The acquisition made by AIP was the third investment by Aldar in Ras Al Khaimah this year, after deals to buy Al Hamra Mall and Rixos Bab Al Bahr in February and April, respectively.
Last month, Aldar further expanded its hospitality portfolio with the acquisition of Nurai Island Resort, as well as two new Abu Dhabi islands intended for residential development.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.”
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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