Dubai: Dubai’s stock market has been buzzing with big-name listings over the past three years. From Salik and Parkin to Dubai Taxi and DEWA, state-backed IPOs have drawn record subscriptions and strong gains.

Now, another heavyweight has stepped in: ALEC Holdings, one of the UAE’s most recognized construction giants.

Subscriptions for its IPO on the Dubai Financial Market (DFM) opened on September 23, 2025. The question on many UAE investors’ minds: should you buy in?

Here’s a detailed breakdown of what all you should consider when deciding whether or not you should invest in ALEC Holdings IPO.

1. ALEC’s 26-year track record

ALEC is a Dubai-based engineering and construction group with a 26-year track record.
It has delivered some of the region’s most complex projects, from Expo 2020 pavilions to airport terminals, luxury hotels, and mega towers like One Za’abeel.
The company operates nine integrated businesses across construction, energy, modular building, fit-outs, heavy equipment rentals, and data centres.

Importantly, ALEC is backed by the Investment Corporation of Dubai (ICD), the government’s principal investment arm. ICD will remain the majority shareholder after the IPO.

2. Dh35.4 billion in projects

One of ALEC’s biggest strengths is its Dh35.4 billion backlog of projects, ensuring steady cash flow for years ahead.

87% of these projects are in the UAE, including the Wynn Al Marjan resort and Stargate Data Centre.
13% are in Saudi Arabia, including projects tied to the Vision 2030 programme, such as Qiddiya Waterpark.

This backlog gives ALEC strong revenue visibility at a time when both UAE and Saudi construction sectors are booming.

3. Profits for 18 straight years

ALEC has not only maintained profitability for 18 consecutive years, but the company also generated annual revenues of Dh8.1 billion, achieving an EBITDA margin of 8% and a net income margin of 4%.

The first half of 2025 has seen further growth, with revenue reaching Dh5.36 billion and slightly improved margins—an EBITDA of 8.2% and a net income margin of 4.5%. Over the past two years, ALEC has also expanded its workforce significantly, now employing 40,000 people, a 46% increase over that period.

CFO John Deeb calls ALEC’s results “very strong,” highlighting that financial discipline and selective project bidding keep the company resilient.

4. Generous dividend policy

For many retail investors, dividends are key—and ALEC is making a bold promise:

2025 payout: Dh200 million.
2026 payout: Dh500 million (split between October and April).
From 2027 onwards: at least 50% of net profits will be distributed as dividends.

This means investors could enjoy steady returns alongside potential share price gains.

5. Data centres: High-growth bet

Construction of data centres is becoming a goldmine for builders, with global demand set to exceed $300 billion in value.

ALEC is positioning itself as a leader here. Its Dh5.3 billion Stargate Data Centre in Abu Dhabi is a clear example of how it’s tapping into higher-margin projects beyond traditional real estate and hospitality.

CEO Barry Lewis calls it “an exciting space where you potentially can get a higher margin than operating in some of the other sectors.”

6. Expansion into Saudi Arabia

ALEC has firmly set its sights on Saudi Arabia, where the government is spending trillions on Vision 2030 giga-projects.

Saudi Arabia’s addressable construction market: Dh4.7 trillion.
UAE’s comparable market: Dh2.8 trillion.

Lewis insists cost-cutting in the kingdom hasn’t hurt ALEC’s pipeline, describing Saudi as a “far bigger opportunity” than the UAE.

Interested? IPO details for investors

Here’s how UAE residents can participate:

Shares offered: 1 billion (20% of company).
Price range: Dh1.35–Dh1.40 per share.
Retail tranche: 5% of offering, with guaranteed allocation of 2,000 shares per subscriber.
Minimum subscription: Dh5,000 (in increments of Dh1,000).
Subscription period: Sept 23–30, 2025.
Expected listing: October 15, 2025, on DFM.
Receiving banks: Emirates NBD, ADCB, ADIB, DIB, Emirates Islamic, FAB, Mashreq, Wio, and Commercial Bank of Dubai.

Risks to keep in mind

Secondary sale: Proceeds go to ICD, not ALEC, since no new capital is raised.
Sector volatility: Construction depends on project cycles, material costs, and delays.
Geographic concentration: Heavy reliance on UAE and Saudi Arabia.
Oversubscription: Past IPOs show strong demand—retail investors may not get their full application.

Should you invest?

ALEC’s IPO comes on the back of Dubai’s blockbuster listings—Salik, Parkin, and Dubai Taxi—all of which now trade well above their IPO prices. Government-backed firms have proven especially popular with investors, with cumulative demand for such IPOs exceeding Dh1 trillion in the past three years.

ALEC’s strengths—steady profitability, massive backlog, aggressive dividend policy, and Saudi expansion—make it an attractive prospect. But retail investors should weigh the risks, read the prospectus carefully, and consider whether construction-sector exposure fits into their portfolio.

Bottom line: ALEC isn’t just another IPO—it’s the UAE giving retail investors access to one of its biggest construction champions. If past Dubai IPOs are any guide, expect heavy demand.

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