Abu Dhabi's newly listed Alpha Dhabi makes for substantial presence from its many parts

The benchmark UAE indices gave a mixed performance, with DFM lower by 1.42 per cent and ADX gaining an impressive 4.92 per cent for the week ended July 1. The best performing stocks were International Holding's Co. (22.49 per cent), Ras Al Khaimah Cement Co. (17.90 per cent), Reem Investments (16 per cent), Gulf Medical Projects (14.93 per cent), Al Buhaira National Insurance (14.74 per cent), Union Insurance (13.33 per cent) and BH Mubasher (10.41 per cent).

The stellar gains for IHC powered the ADX higher. IHC itself was propelled by Alpha Dhabi Holding's listing. The latter operates across the five major verticals of industrials, healthcare, capital, construction, and hospitality, and closed the week with a market capitalization of Dh174.60 billion. It's already the fourth-largest listed company by market cap, and helping the overall ADX market cap to well over Dh1 trillion.

For 2020, Alpha Dhabi had revenues of Dh3.8 billion, an EBITDA of Dh348 million, and a net profit of Dh218 million.

Another standout performer

The National Marine Dredging Company (NMDC), formed from a merger between NMDC and NPCC, is a critical company in the industrial vertical of Alpha Dhabi. A semi-governmental entity, NMDC had grown its revenues from Dh1.42 billion in 2018 to Dh3.78 billion last year. Profits more than tripled to Dh352 million.

NMDC provides dredging, reclamation, and marine construction projects to clients in the energy, environment, maritime, tourism, and urban development sectors. By its very nature, the company is strategic for UAE due to the extensive coastline and the country's plan for large coastal cities and to maintain its existing oil drilling facilities.

The healthcare vertical of Alpha Dhabi Holding has Response Plus Medical Services (RPM), which operates in UAE, Saudi Arabia and Oman. The company provides onsite healthcare management, occupational health solutions, and emergency transfers from remote sites. It saw revenues rise from Dh137 million in 2018 to Dh242 million in 2020.

In addition, Mawarid Holding, an industrial vertical subsidiary, works in forest management, landscaping, research and development, animal feed production, finance, and tourism industries. The company has over 11,330 staff, and revenues rose to Dh1.26 billion from Dh1.03 billion in 2017.

Construction heavyweight

Trojan Holding, recognized as one of the most prominent construction groups in Abu Dhabi, comes under the construction vertical. Trojan has executed more than 150 projects and with 194 still under construction. Alpha Dhabi Hospitality Holding, its tourism vertical, through Murban Abu Dhabi, owns marquee assets like Cheval Blanc Randheli (Maldives), Banyan Tree Intendance (Seychelles), and a resort on Saadiyat Island in Abu Dhabi.

As a holding group, Alpha Dhabi owns 65 per cent of NMDC, 40 per cent of Response Plus Medical, 70 per cent of Mawarid Holding, 100 per cent of Trojan General Contracting, and 100 per cent of Murban Abu Dhabi. Through its various verticals, Alpha Dhabi tries to diversify Abu Dhabi economy and is a great long-term play.