Abu Dhabi: The transfer of 11 government entities into Abu Dhabi Development Holding Company (ADDHC) could boost efficiency and reduce costs.
“You have several companies that are commercial in nature like Abu Dhabi Ports, which can go to public markets for an IPO,” said Tariq Qaqish, managing director for asset management at Menacorp. “The decision to have all those entities under one roof will help remove bureaucratic hurdles in decision-making and the process would be much faster.”
The 11 companies include, Abu Dhabi Ports, Abu Dhabi Media Co., Abu Dhabi Airports Co., Modon Properties, Abu Dhabi Health Services Company (SEHA) and National Health Insurance Co. (Daman).
Abu Dhabi National Exhibitions Company (Adnec), Abu Dhabi Sewerage Services Company (Adssc), Abu Dhabi General Services Company (Musanada), twofour54 and its group of companies and the Higher Corporation for Specialised Economic Zones (Zones Corp) will also be subsidiaries of ADDHC, according to a statement on news agency WAM.
Abu Dhabi Developmental Holding Company was created in 2018 with a capital of Dh500 million to monitor and guide development of service companies in the emirate.
“The government is adjusting to market conditions and the slowdown in the private business and SME segments,” said Qaqish. “They are placing lots of efforts on creating hubs for technology innovation, which is clearly the future. Competition is increasing in the region and if we don’t provide something unique as business infrastructure for investors to come in, then you start to lose your competitive edge.”
Abu Dhabi Ports is the master developer, operator and manager of commercial and community ports within Abu Dhabi, in addition to the Port of Fujairah, as well as the Khalifa Industrial Zone Abu Dhabi (Kizad). It also owns 50 per cent of Abu Dhabi Terminals, which operates and manages Khalifa Port Container Terminal.
Adnec manages Abu Dhabi National Exhibition Centre as well as Al Ain convention centre, and hosts mega events like Adipec and Idex. The Zones Corp operates industrial zones in Abu Dhabi providing infrastructure for companies to operate.
The Abu Dhabi government last week also announced a series of measures under Ghadan 21 initiative to accelerate economic growth, including discounts on electricity tariffs, instant licensing procedures, funding support for small and medium enterprises, and creation of a Dh4billion fund for research and development in private companies.