Alpha Dhabi’s growth strategy powers Dh7.3 billion net profit

Revenues also grew significantly to reach Dh12.8 billion

Alpha Dhabi reported a strong set of first quarter financial results with net profit up 161 per cent year-on-year to Dh7.3 billion (Q1 2022: Dh2.8 billion), which includes a fair value gain as a result of the derecognition of Pure Health Holding LLC. Revenues also grew significantly to reach Dh12.8 billion, representing a 56 per cent year-on-year increase (Q1 2022: Dh8.2 billion), with contributions from the existing real estate and industrial portfolio continuing to be strong drivers of growth for the Group.

Alpha Dhabi continues to pursue acquisitions and investments as part of Its growth strategy and announced a partnership with Mubadala to co-invest in global credit opportunities. Alpha Dhabi and Mubadala aim to collectively deploy up to ~Dh9 billion (approximately $2.5 billion) over the next five years, leveraging Mubadala’s long-term and strategic partnership with Apollo, one of the world’s largest alternative asset managers, to access high-quality private credit investment opportunities. Mubadala will hold 80 per cent ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20 per cent to be held by Alpha Dhabi.

This transaction also represents Alpha Dhabi’s entry into the private credit market as it continues to execute on its diversification strategy and capitalise on investment opportunities in new markets.

Alpha Dhabi’s portfolio expansion outside of the UAE is supporting growth with overseas revenue accounting for Dh0.9 billion in the first three months of 2023, representing a 7 per cent increase year-on-year.

Alpha Dhabi’s balance sheet remains strong with Dh120.6 billion in total assets, representing a 129 per cent increase year-on-year, on the back of strong investment activity. The Group remains well-funded with a strong cash position of Dh16.6 billion to support and drive growth and expansion across both sectors and geographies. Through a strong operating model, financial position, capital deployment track record and agile investment approach Alpha Dhabi said it remains uniquely positioned to continue to drive further growth and capitalise on investment opportunities while also generating value for shareholders in both the short and long term.

Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “Alpha Dhabi has delivered another set of excellent financial results as we continue to cement our position as a leading regional investment holding company. Our diversified business continues to grow from strength to strength with a positive market sentiment in the UAE, underpinned by strong economic fundamentals and a buoyant capital markets landscape in contrast with the global outlook.”

“We have started this year robustly, with our diversified portfolio delivering results which continue the momentum from last year. Looking ahead we will continue to develop our core verticals both organically and through additional investment and acquisition. We continue to deploy capital effectively in value-accretive opportunities that support the market leadership of our portfolio companies.”