IHC exits Modon stake to free capital for priority sectors

Dubai: International Holding Company (IHC) has sold its entire 42.54% stake in Modon Holding to L’imad Holding Company, in a move that strengthens its diversification strategy and frees capital for deployment into higher-growth industries.

The buyer is fully owned by the Abu Dhabi Government. Financial terms were not disclosed.

The divestment is aligned with IHC’s internal threshold to keep exposure to any single sector below 20%. Modon, a major real estate and infrastructure developer in Abu Dhabi, was one of IHC’s most significant property investments. The group acquired the stake in August last year and has now exited after a period of strong performance.

IHC said the decision is part of its active portfolio-management framework. The capital released will be redeployed into sectors including healthcare, technology, energy, food and agriculture, and financial services, consistent with its long-term strategy to scale platforms in industries with structural growth.

The exit follows a period of rapid scale-up at Modon. Since IHC’s investment, Modon has delivered multi-billion-dirham revenue and profitability, and entered this year with strong sales momentum and a growing backlog. Market analysts note that the timing reflects IHC’s preference for realisation once platforms reach maturity and can continue growth under new stewardship.

The group continues to operate one of the most diversified investment portfolios in the region, with platforms across listed equities, private assets, strategic national-priority clusters and global expansion initiatives. Managing concentration risk has been a central part of its strategy, particularly after the rapid growth in value of certain holdings over the past three years.

Portfolio rebalancing has accelerated this year, with IHC signalling more active capital recycling alongside expansion into international ventures and technology-driven businesses. The company has been building scale in renewable energy, healthcare services, digital infrastructure, food systems and future-economy clusters aligned with Abu Dhabi’s industrial strategy.

IHC said it will continue to originate investment platforms and evaluate new entry points across public and private markets, with a focus on opportunities that can generate resilient cash flows and support long-term value creation.