Alpha Dhabi sets its sights on expansion after posting record profit last year

Company says it will continue to invest in businesses that have established operations, generate income and are value-accretive to its portfolio

Abu Dhabi listed Alpha Dhabi Holding will pursue international investment opportunities as part of its wider strategy to boost growth. Photo: ADX

Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, is planning to expand further to boost growth after posting a record profit in 2021 on the back of higher revenue.

The company plans to expand its business in core sectors including construction, real estate, health care, hospitality and petrochemicals, Alpha Dhabi Holding said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

“Alpha Dhabi will create additional value by building scale, realising synergies and developing the operations of its existing entities to deliver greater efficiencies,” the company said. “In tandem, Alpha Dhabi will continue to invest in businesses that have a solid track record, foster innovation, are disruptive in nature and complement Alpha Dhabi’s existing portfolio companies.”

The Abu Dhabi-based company will look at businesses and investments that have “established operations, generate income and are value-accretive to Alpha Dhabi’s portfolio such as the acquisition of a significant stake in Aldar Properties in 2021”, it said.

Alpha Dhabi, previously known as Trojan Holding, listed on ADX in June last year and has embarked on an expansion drive since then to evolve into a regional conglomerate.

Last year, it acquired the entire share capital of Murban Energy, a 70 per cent stake in Mawarid Holding Investment and 100 per cent of the share capital of Sublime Commercial Investment, through which it holds a stake in Aldar Properties.

The company also bought a 65.11 per cent stake in the National Marine Dredging Company, which it raised by 3.38 per cent in January, as well as 40 per cent of Response Plus Medical and 65 per cent of Sandstorm Motor Vehicles Manufacturing.

In January, it acquired a 25.24 per cent stake in Al Qudra Holding and increased its share in Aldar Properties, Abu Dhabi’s biggest developer, to 29.8 per cent from 17.5 per cent.

“Our growth plans are underpinned by a solid pipeline of investment opportunities across our core sectors and a measured approach, which leave us strongly positioned to deploy capital effectively in the pursuit of building scale and enhancing diversification across our growing portfolio,” said Hamad Al Ameri, chief executive of Alpha Dhabi Holding.

Alpha Dhabi reported a net profit of Dh5.16 billion ($1.4bn) in 2021 compared to Dh218 million in the previous year as revenue almost quadrupled annually to Dh18.8bn. The company’s total assets surged to Dh47.3bn as of December 2021 from Dh5.39bn a year ago.

The company also plans to pursue international investment opportunities as part of its wider strategy to boost growth, it said.

Locally, Alpha Dhabi is teaming up with Abu Dhabi's holding company ADQ as well as Etisalat and First Abu Dhabi Bank to launch Wio, a new digital banking platform.