Amanat has investments across education, health care and property sectors. Courtesy Amanat
Amanat has investments across education, health care and property sectors. Courtesy Amanat
Amanat has investments across education, health care and property sectors. Courtesy Amanat
Amanat has investments across education, health care and property sectors. Courtesy Amanat

Economy

Amanat’s full-year profit slides amid Covid-19 pandemic

The company plans to invest in businesses with strong earnings potential

Fareed Rahman
Fareed Rahman

February 11, 2021

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Amanat Holdings, the Dubai-listed investment firm that specialises in healthcare and education, reported an 86 per cent drop in full-year net profit, despite a rise in revenue.

Net profit for the period ending December 31, 2020, declined to Dh8.3 million, the company said in a statement to the Dubai Financial Market, where its shares trade. Revenue rose 1 per cent year-on-year to Dh143.5m.

The company, which owns a number of schools and hospitals, did not provide details on why its profit declined last year.

“2020 was an exceptional year with Covid-19 impacting economic sectors on a national and global level, too,” Hamad Al Shamsi, Amanat’s chairman said.

“Despite the challenges, both Amanat and its portfolio companies managed to conclude the year with a satisfactory result from operations. Amanat’s financial strength and capital structure managed to put us in a favourable position to navigate the headwinds.”

Amanat has investments across the education, health care and property sectors. Its education portfolio includes schools operator Taaleem, Abu Dhabi University Holding and Middlesex University Dubai. It also owns the property assets of the North London Collegiate School in Dubai.

Amanat’s healthcare platform includes International Medical Center (IMC), a 300-bed multi-disciplinary hospital based in Jeddah, Sukoon, a provider of acute extended care, critical care and home care medical services and the Royal Hospital for Women and Children in Bahrain.

The company’s total assets fell 2 per cent to Dh2.71 billion.

“Looking ahead, we have a clear strategic roadmap, and the board of directors have identified the key pillars to grow our earnings and drive Amanat to its next phase of growth,” Mr Al Shamsi said.

“These pillars include strategic objectives to improve our portfolios’ performance and profitability, optimise our capital structure further and accelerate investments in high-yielding assets.”

The company will also focus on investing in businesses with “strong earnings potential that are leading the transformation of the healthcare and education sectors," he added.

Last year, Amanat invested Dh18.4m in US education technology company BEGiN during a Series C financing round.

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Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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West Indies: 154

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Price, base: Dh1 million (estimate)

Engine: 6.75-litre twin-turbo V12

Transmission: Eight-speed automatic

Power: 563hp @ 5,000rpm

Torque: 850Nm @ 1,600rpm

Fuel economy, combined: 15L / 100km

Meydan Racecourse racecard:

6.30pm: The Madjani Stakes Listed (PA) | Dh175,000 | 1,900m

7.05pm: Maiden for 2-year-old fillies (TB) | Dh165,000 | 1,400m

7.40pm: The Dubai Creek Mile Listed (TB) | Dh265,000 | 1,600m

8.15pm: Maiden for 2-year-old colts (TB) | Dh165,000 | 1,600m

8.50pm: The Entisar Listed (TB) | Dh265,000 | 2,000m

9.25pm: Handicap (TB) | Dh190,000 | 1,200m

10pm: Handicap (TB) | Dh190,000 | 1,600m.

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Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.

"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.

Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.

The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.

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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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It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration. 

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1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

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