IHC’s Alpha Dhabi posts Dhs13.3bn in full-year net profit

UAE-based conglomerate Alpha Dhabi Holding has reported a 25 per cent increase in net profit year-on-year (YoY) to a record Dhs13.3bn, driven by growth across all business segments and strategic acquisitions and investments made since 2022, including the Aldar Properties deal.

The group said its revenues grew substantially in 2023 to reach Dhs45.4bn, a 14 per cent increase YoY from a year ago.

“Alpha Dhabi’s impressive performance in 2023 is both a reflection of our strength and capabilities as well as a validation of the depth, resilience, and diversity that’s found across our growing portfolio,” said Hamad Al Ameri, managing director and CEO of Alpha Dhabi.

“As we advance into 2024, we are on a strong footing to enhance our core investment activities through strategic partnerships and acquisitions.”

Alpha Dhabi’s portfolios in industrial, real estate, and construction, contributed significantly to the company’s earnings representing 37, 23, and 19 per cent of the total revenue, respectively.

The company said its growing and diverse portfolio has been a significant driver of its revenue growth, with all segments contributing to the increase in profit.

Alpha Dhabi’s growing portfolio

Through its strategic partnerships with ADNOC Drilling and Mubadala Investment Company (Mubadala), Alpha Dhabi plans to deploy as much as Dhs2.1bn into oil field services and Dhs1.7bn into global credit opportunities.

“Fundamentally, we are in a position where we can confidently assess and invest in growth opportunities across a diverse spectrum of sectors and geographies, as well as ensure that these investment decisions add value to our portfolio, benefit our shareholders, and deliver real-world impact,” said Al Ameri.

Last November, Alpha Dhabi and ADNOC Drilling set up an investment joint venture (JV) to invest up to $1.5bn to acquire technology-enabled companies in energy and oilfield services.

Earlier this year, Alpha Dhabi transferred its 25 per cent stake in US drilling technology firm Gordon Technologies to its venture with ADNOC Drilling.

The $180m equity stake marks the initial strategic investment by the Abu Dhabi-based holding firm in the venture.

The holding firm teamed up with Abu Dhabi state investor Mubadala to co-invest in credit opportunities.

The Abu Dhabi duo plans to collectively deploy up to Dhs9bn over the next five years, leveraging Mubadala’s strategic partnership with Apollo to access high-quality private credit investment opportunities.

 Read: Alpha Dhabi transfers 25% stake in US firm to ADNOC Drilling JV