Abu Dhabi-listed Waha Capital swings to $25.6m net profit in Q2

The investment management company’s profit was driven by healthy returns from its capital markets business

An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange June 25, 2014. The spectacular rise and fall of Arabtec, Dubai's most heavily traded stock, teaches hard lessons about how risky the region remains for investors even as its rapid economic growth lures billions of dollars in fresh funds from abroad. Wild trading by local retail investors who dominate activity, plus weak corporate disclosure and a hands-off approach by regulators, can make a toxic mix, and on occasion destabilise entire markets.  REUTERS/Stringer  (UNITED ARAB EMIRATES - Tags: BUSINESS) - GM1EA6P1SB001
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Waha Capital, an investment management company which counts Mubadala Investment Company among its shareholders, swung to a Dh93.9 million ($25.6 million) second quarter net profit attributable to owners, driven by healthy returns from its capital markets business.

The company recorded a loss of Dh59.3 million for the corresponding period of 2022, it said on Friday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

It also reported a net operating income of Dh259 million during from April to June, compared with a loss of Dh54.2 million for the corresponding period of 2022.

“Despite the increased economic and market certainty globally, the company has shown resilience and reported positive returns to-date thanks to its prudent approach,” Mohamed Al Nowais, managing director of Waha Capital, said.

“The public markets business has continued to deliver robust results since inception, with the flagship funds continuing to outperform their benchmark indices in 2023.

“The growth strategy for the private investments business has begun to yield results, with investments made and growth achieved in the global opportunities and core portfolio, and the opportunistic monetisation of mature assets under the legacy portfolio.”

In May, the company’s board of directors appointed Mr Al Nowais as managing director to lead Waha Capital through the next phase of its growth and development.

The company reported a net profit attributable to owners of Dh168.9 million for the first half of this year compared with a net profit of Dh87.3 million for the corresponding period of 2022.

Waha Capital’s public markets division recorded a net profit of Dh155 million in the second quarter compared with a loss of Dh53.7 million in the corresponding last year, while its private investments business narrowed its Q2 loss to Dh3.3 million from Dh2.2 million in the same time in 2022.

Waha Land, a wholly-owned subsidiary of Waha Capita that owns and operates light industrial real estate assets, recorded net profit of Dh8.3 million in the three months to the end of June.

“Despite an anticipated uncertain macroeconomic environment ahead, driven by the combination of slow growth, high inflation and geopolitical risks, Waha Capital remains cautiously optimistic about the future,” Mr Al Nowais said.

Waha Capital’s total assets under management reached Dh10.2 billion as of June 30, compared with Dh9.49 billion at the end of last year.

Updated: July 29, 2023, 9:55 AM