Abu Dhabi’s Waha Capital navigates some smooth returns in ‘21
Its real estate arm Waha Land also pulled its weight on the bottom-line
Waha Capital, an Abu Dhabi-listed investment company, leverages its emerging markets expertise, business networks, and research capabilities to deliver attractive returns on its funds. Its market cap is Dh3.17 billion. With solid returns from its emerging markets’ credit and equity fund businesses, the firm posted a 69 per cent increase in profit in 2021, while the owners’ share of profits jumped to Dh391 million ($106m).
The decision to adopt a turnaround strategy in 2019 vastly improved its performance. While global capital markets experienced increased volatility, all funds managed by the business continued to fare well as per their benchmarks. Therefore, it was still feasible for Waha Capital to perform well despite unstable markets and challenging macroeconomic scenarios. Having built on the past year’s success, the company is well-positioned to generate long-term, sustainable value for its shareholders.
Real estate adds tally
In 2021, Waha recorded investment gains and fee income of Dh902 million for its publicly traded markets business, which managed $1.2 billion in assets. As a result, net profit rose 88 per cent year-on-year to Dh603 million. In addition, Waha Land, the real estate subsidiary, owns an integrated mixed-use development with 95 per cent occupancy in 2021. As a result, the unit’s net profit increased 52 per cent to Dh35 million, adding to the parent company’s stellar profit numbers.
New hires pay back
Several experienced investment professionals hired by the firm ahead of the improvement in private investments led to the organization achieving its 2021 targets. Looking ahead, Waha Capital’s financial performance and strong balance-sheet position it to develop its strategy for further growth.
The whole of 2021 was bullish for public securities as the financial markets were injected with added liquidity due to lockdowns and travel restrictions in place. The stellar run for equities was across all indices, and investment management companies achieved higher returns. Waha Capital is an excellent example of a local fund management company that delivered stellar returns and stellar earnings. In 2022, Waha Capital’s objective is to ensure that both (private and public investment) businesses continue to accelerate growth.