Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, will invest Dh8 billion ($2.2bn) across various sectors as part of its expansion strategy to boost growth.
The company will invest the earmarked funds in real estate, hospitality, healthcare, petrochemicals and “other promising sectors” in the UAE and outside the country, it said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“During our board meeting, we approved the expansion of our investment portfolio, a reflection of the company’s shareholder confidence, our leadership’s vision and remarkable growth recorded to date,” said Hamad Al Ameri, managing director and chief executive of Alpha Dhabi Holding. “We believe that a carefully administered investment ... will help fulfill our responsibility to shareholders, adding value by expanding our diverse portfolio.”
Alpha Dhabi, which has a market value of Dh257.4bn and was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions this year.
Earlier this year, it acquired the entire share capital of Murban, a company with investments in the hospitality, facility management services and oil and gas services sectors and a 70 per cent stake in Mawarid Holding Investment, which is engaged in Sharia-compliant financing and investing activities through Aafaq Islamic Finance.
Alpha Dhabi also holds a 12 per cent stake in Aldar, Abu Dhabi’s biggest property developer, a 65.11 per cent stake in National Marine Dredging Company and 40 per cent of Response Plus Medical, which is involved in management of ambulance services and home health services.
“The real estate market is experiencing an uplift in both demand and value, and ADH is pursuing new directions to keep pace with the sector’s recovery and to build a solid foundation for development and growth,” the company said.
The UAE’s property market continues to recover from the coronavirus pandemic-induced slowdown on the back of new government initiatives such as the expansion of the golden visa scheme, as well as the accelerated vaccination programme.
In Abu Dhabi, villa prices rose 14 per cent annually in the third quarter of this year, while apartments posted a modest increase of 1 per cent, according to Asteco. In Dubai, villa prices jumped 37 per cent, while apartment prices rose 14 per cent during the period.
ADH said it was in discussions to invest in promising sectors inside the UAE and will continue to pursue new investment opportunities outside the country.
In October, the company reported a sharp jump in its net profit during the third quarter of this year as revenue surged thanks to acquisitions.
Net profit attributable to shareholders of the company for the three months to the end of September increased to Dh1.3bn from Dh81.3 million reported during the same period the previous year.