2PointZero, the Dh120 billion ($33 billion) group being created through the merger of three Abu Dhabi companies, is seeking growth through plans to invest in markets across Asia, Africa and Europe.
Mariam Almheiri, Head of the International Affairs Office at the Presidential Court and also chief executive of 2PointZero, one of the companies in the tri-party deal, said an expanded balance sheet and capital strength would give the new “investment powerhouse” financial muscle to fund aggressive growth targets.
The merged investment platform will target all areas of the world, she said. “We’ve focused on two power engines of growth: energy and consumer. In energy and infrastructure, we have a lot of interest in Africa, Asia and southern parts of Europe,” Ms Almheiri told The National on Thursday.
"In the consumer sector, we’re interested globally and the merged entity already has a presence in 85 countries. We will start building on the synergies that already exist.
“Global energy demand is projected to grow by more than 20 per cent by 2050. You’ve grids that need to be upgraded and data centres coming online to drive AI economies," Ms Almheiri said. "On the consumer side, it’s projected that one billion new consumers will be coming into the middle class by 2030, which means you are adding another $2.4 trillion of annual consumption. These mega trends will shape the next decade.”
International Holding Company, the largest listed company in the UAE, is merging three of its portfolio firms to create the new energy and consumer sector-focused investment platform.
The merger will bring together IHC’s three flagship companies - 2PointZero, Multiply Group and trading and food distribution subsidiary Ghitha Holding - into a single, “next‑generation investment powerhouse” that will create one of Abu Dhabi’s largest listed investment companies, IHC said.
It will be renamed 2PointZero Group and will continue to be listed on the Abu Dhabi Securities Exchange (ADX). The merged company would focus on energy and consumer sectors, IHC said.
Subject to shareholder and regulatory approvals, the deal is expected to be completed by mid‑November, the company added.
IHC, the private sector bellwether and a major part of Abu Dhabi's efforts to diversify its non-oil business sectors, has been on an investment and acquisition spree as it aims to double its asset base to $218 billion by 2030.
Calling it a “milestone moment” in 2PointZero’s growth journey, Ms Almheiri said the deal delivers cost and operational synergies.
“The biggest synergies from the merger are in costs and AI. We are exponentially growing AI agents as the operating system of 2PointZero. With that comes efficiencies and operating performance", with AI boosting employee performance 10 or even 100 times, she said.
“AI even supports investments. For example, Multiply has AI agents set up to look at investment opportunities, so decisions can be made more quickly.”
Ms Almheiri said 2PointZero was planning an initial public offering within two years and aimed for a total asset value of Dh100 billion ($27.23 billion).
The company is on a “growth spurt”, and the merger of three flagship portfolio companies will build on strengths and synergies.
“It was the best option moving forward, so I am not disappointed at not IPOing,” Ms Almheiri said.
The portfolio of 2PointZero, which was set up by IHC last year, includes companies in energy, mining and financial services sectors, such as El Sewedy Electric in Egypt and EHC International. In the financial sector, 2PointZero’s holdings include Lunate, Beltone Holding, Chimera Investment, Alpheya, Citadel and Sagasse.
Multiply Group, one of Abu Dhabi’s largest investment platforms, operates across five consumer-focused sectors: mobility, media, apparel, packaging and beauty. Its portfolio of investments includes a major stake in Emirates Driving Company, energy and utilities major Taqa, the Dubai Electricity and Water Authority, Borouge, Getty Images and renewable energy company Kalyon Enerji.
The company has also expanded in Europe with a Dh5.6 billion acquisition of a majority stake in Spain’s apparel giant Tendam and a majority stake in Italy’s ISEM, a packaging manufacturer serving clients such as LVMH, KIKO, Gucci and L’Oeéal.
The portfolio of Ghitha Holding, which is central to the UAE's food security agenda, includes Al Ain Farms, Al Ajban Poultry, Abu Dhabi Vegetable Oil Company, Al Hashemeya, Asmak, Marmum, Mirak Group, Zee Stores and Royal Horizon. Through Apex Investments, the company also maintains its investment in the energy sector.
