Alpha Dhabi Holding, a leading regional investment holding company, has reported a significant increase in net profit and revenues in the first quarter of 2023. The company’s net profit surged by 161% year-on-year to Dh7.3 billion, which includes a fair value gain due to the derecognition of Pure Health Holding LLC. Revenues also grew substantially to reach Dh12.8 billion, representing a 56% increase year-on-year. Alpha Dhabi’s existing real estate and industrial portfolio contributed significantly to the strong financial results.
The company’s growth strategy includes pursuing acquisitions and investments, and it has recently announced a partnership with Mubadala to co-invest in global credit opportunities. Alpha Dhabi and Mubadala plan to deploy up to Dh9 billion over the next five years, leveraging Mubadala’s partnership with Apollo, one of the world’s largest alternative asset managers, to access high-quality private credit investment opportunities. Mubadala will hold 80% ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20% to be held by Alpha Dhabi.
This partnership marks Alpha Dhabi’s entry into the private credit market, which is part of its diversification strategy to capitalize on investment opportunities in new markets. The company’s portfolio expansion outside of the UAE is also supporting growth, with overseas revenue accounting for Dh0.9 billion in the first quarter of 2023, representing a 7% increase year-on-year.
Alpha Dhabi’s balance sheet remains strong, with Dh120.6 billion in total assets, a 129% increase year-on-year due to strong investment activity. The company has a strong cash position of Dh16.6 billion to support and drive growth and expansion across both sectors and geographies. Alpha Dhabi remains well-positioned to continue driving growth and capitalizing on investment opportunities while generating value for shareholders in both the short and long term.
Hamad Al Ameri, CEO of Alpha Dhabi Holding, said, “Alpha Dhabi has delivered another set of excellent financial results as we continue to cement our position as a leading regional investment holding company. Our diversified business continues to grow from strength to strength with a positive market sentiment in the UAE, underpinned by strong economic fundamentals and a buoyant capital markets landscape in contrast with the global outlook.”
He added, “Looking ahead, we will continue to develop our core verticals both organically and through additional investment and acquisition. We continue to deploy capital effectively in value-accretive opportunities that support the market leadership of our portfolio companies.”
The company’s financial results are a positive reflection of its strategic focus on diversified growth and investment opportunities, even amidst a challenging global economic environment. Alpha Dhabi’s strong balance sheet and cash position provide it with the flexibility to capitalize on investment opportunities and pursue further expansion in both domestic and international markets.
Alpha Dhabi, the Abu Dhabi-based investment holding company, has reported a strong set of first quarter financial results, reflecting the successful execution of its growth and diversification strategy. The Group’s net profit for Q1 2023 soared 161% YoY to reach Dh7.3 billion, while revenues grew by 56% YoY to reach Dh12.8 billion, driven by the strong performance of its real estate and industrial portfolio.
One of the key drivers of Alpha Dhabi’s growth strategy is its pursuit of acquisitions and investments, and the Group announced a new partnership with Mubadala to co-invest in global credit opportunities. The Group has a strong cash position of Dh16.6 billion, which it will use to support and drive growth and expansion across both sectors and geographies.
Overall, Alpha Dhabi’s strong Q1 results are a testament to the Group’s effective execution of its growth and diversification strategy. With a strong balance sheet, a focus on expanding its investment portfolio and international presence, and a commitment to generating value for shareholders, Alpha Dhabi is well-positioned to continue driving growth and delivering strong financial results.
