Eyes on Asia, scale in Abu Dhabi: 2PointZero Group chief sets bold course after $33bn merger

Group will focus on high-growth sectors, Samia Bouazza says in her first interview since taking the helm

Samia Bouazza, the new chief executive of 2pointZero Group.

Samia Bouazza, the newly appointed group chief executive of 2PointZero Group, has laid out an ambitious strategy for the Abu Dhabi investment powerhouse, calling the consolidation of 2PointZero, Multiply Group and Ghitha Holding one of the largest mergers the city has seen.

In her first interview since taking the helm, Ms Bouazza told The National that the merged entity, which is under the International Holding Company, is creating “the largest listed investment platform that powers everyday life of consumers".

It will have a focus on energy and consumer sectors with multitrillion-dollar themes for the next decade, she added.

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The 2PointZero Group – with assets of Dh121 billion ($33 billion) – now spans 50 companies operating in 85 countries. This reach gives the group exposure to a potentially large customer base when aggregated across verticals.

Ms Bouazza said the rise of the middle class, particularly in Asia, is central to the group's investment logic.

This year, more than 100 million people are expected to join the consumer class, which covers people who spend more than $13 a day, according to analytical NGO World Data Lab.

"That gives us 100 million people per year, which is a billion people for the next 10 years," Ms Bouazza said. She said they are adding "$2.4 trillion of extra spending" to the consumer economy.

"And 80 per cent of that spending is in Asia," she said. "This data tells us we are very well positioned."

The Asia Pacific region is undergoing the largest middle-class expansion in history, according to MasterCard. By 2035, it will be home to 3.2 billion of the world's five billion middle-class consumers.

The group is looking at Asia with "eyes wide open, looking strategically, proactively and also opportunistically", said Ms Bouazza.

"We're actively looking at three deals currently in Asia, in addition to the existing agreements that 2PointZero has had with Adani [Group] in terms of renewables in India, which will kick in in the next few years," she said.

"We're playing in the right space that gives us … double-digit growth [and] multitrillion-dollar themes for the next 10 years."

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Strategic milestone

The 2PointZero Group consolidation has the ability to scale the emirate's economic ambitions across high-growth sectors and deliver stronger, more predictable shareholder returns, said Ms Bouazza.

“Today, we're Dh121 billion of assets, very healthy debt to equity [ratio]. We're well-capitalised,” she said, noting that the group holds Dh10 billion of consolidated group cash and a public equity portfolio of Dh31.5 billion.

These figures, which she said are new disclosures, give the company flexibility to pursue acquisitions while enhancing its earning profile.

"We have a very healthy LTV (loan-to-value) ratio … we are still in a position to borrow and grow our companies," said Ms Bouazza.

In addition to aggressive international expansion, shareholders should expect a more structured approach to dividends as part of the new five-year strategy currently in development, she said.

While growth remains the priority, she noted that the company’s liquidity means it can support reinvestment and returns.

"You're not an either growth or dividend stock when you are well capitalised and well managed. You can do both."

Ms Bouazza confirmed that the company is already assessing divestments to create new liquidity for reinvestment.

“We are in advanced negotiation to divest one of our assets," she said. "We are continuously studying our portfolio, the return on assets, the return on capital employed in those assets, in order to make the best decisions for our shareholders.”

Diversified growth

As part of IHC's $24 billion global drive, 2PointZero Group will continue expanding vertically across consumer segments including food, beauty manufacturing, apparel, packaging and fitness, in addition to more unconventional consumer sectors.

Ms Bouazza said the group is actively evaluating opportunities in funeral services and exploring fitness investments in Asia, which she attributed to upward mobility across the region.

In packaging, after a recent Italian acquisition, the group is assessing growth in France, Spain and Italy, with possible expansion into India should it choose to move into primary packaging. In beauty, the group is looking at companies in Korea, Japan, Italy and France.

Food security remains a core pillar. Ms Bouazza stressed that food is “the key sector that we are always focused on” and highlighted the group’s strategy to expand local capability “from farm to fork", ensuring resilience in essential categories such as rice, eggs and chicken.

The company also has an extensive footprint in energy, with Taqa - which also is the largest shareholder in Masdar. The group also has renewable assets in Europe and mining investments in Zambia and Congo.

Ms Bouazza noted enablers and opportunities in Europe and the US, saying America remains unmatched in areas such as AI and media. Multiply Group entered a high-profile, AI-focused agreement with Aleria AI last week, which gave the company access to Nvidia's GPUs, AI frameworks and ecosystem.

This serves "as a hyperscaler, in order to support us [in the UAE] with our AI needs across the board", she said.

"And also, don't forget the UAE. We're very much always looking at the UAE because it has attributes of emerging market growth," she said, with the economy growing at more than 5 per cent.

"It also it gives you the safety and the infrastructure and the legal policies of a very advanced economy."