Alpha Dhabi Holding has been wowing investors with a series of bold investment and consolidation moves. Image Credit: Gulf News Archives

Alpha Dhabi Holding PJSC (ADH), the Abu Dhabi-based conglomerate that listed just six months ago, has a market valuation of Dh261.4 billion from strategic acquisitions and expansion plans. Revenues were at Dh11.42 billion for the first nine months of 2021, up 341 per cent year on year, thanks to its investments in an array of profitable enterprises. Net profit for the period was Dh3.69 billion, compared to Dh185 million the year earlier.

All of which reflect the impact of the transformational change undergone by the company ADH's business expansions amounted to total asset growth of Dh31.34 billion for the first nine months of 2021. Like its parent firm IHC, Alpha Dhabi aspires to add value to its shareholders through its appetite for investing in value-adding enterprises at an opportune time.

A Dh8b blueprint

As a part of its diversification blueprint, Alpha Dhabi Holding intends to spend Dh8 billion in real estate, hospitality, healthcare, petrochemicals, and other high yield areas within and outside the UAE. ADH previously owned a 12 percent stake in Aldar Properties, but to enhance its concentration in real estate, increased that to 30 per cent.

Alpha Dhabi intends to take full advantage of the real estate market rebound thanks to UAE's post-pandemic resilience and agility.

ADQ, the Abu Dhabi wealth fund, has reached a deal with Alpha Dhabi Holding to integrate various enterprises with Pure Health, a subsidiary of ADH, to be the UAE's largest healthcare provider. In addition, ADH acquired a 25 per cent stake in Al Qudra Holdings, a private joint-stock company. Al Qudra's business strategy is a perfect fit for ADH, as the company is involved in unique investment opportunities and has aided in creating several projects that satisfy the needs of local and regional markets.

Significant contributor

These investments are part of Alpha Dhabi's plan to cement its place as a significant contributor to the UAE economy, in line with the country's 'Projects of the 50' initiative. Alpha Dhabi's stock price has risen by 76 per cent in just six months, justifying the high valuation and investor confidence in its growth strategy. ADH achieves operational synergies and maximizes cost reductions across all verticals.

The major highlights for 2021 were its series of acquisitions – 70 per cent in Mawarid Holdings, 65 per cent in NMDC, and 40 per cent in Response Plus - and reiterated its hold in the Abu Dhabi landscape. As a result, the mega-corporation is on course to meet Abu Dhabi's ‘Vision 2030’ goal of growing the UAE's non-oil sectors.