TLDR:
Alpha Dhabi’s Q3 profit surges significantly.
Real estate, industrial segments boost revenues.
Strategic investments since 2022 paying off.
ABU DHABI (The Thursday Times) — The Abu Dhabi-based investment holding company Alpha Dhabi has experienced a dramatic surge in its financial performance for the third quarter of 2024, recording an impressive year-on-year profit increase. This growth comes in a landscape shaped by strategic decisions and investments that have carved a significant trajectory for the company across multiple high-growth sectors. Alpha Dhabi’s recent financial results have been marked by an extraordinary 83% rise in operating net profit, climbing to AED 7.5 billion, reflecting the organisation’s strong, relentless pace of activity.
The firm’s revenue has also swelled, amounting to AED 44.2 billion and showcasing a substantial increase across its key segments. The industrial sector emerged as a major contributor, with real estate and construction following closely behind. Alpha Dhabi’s strategic acquisitions and investments made since 2022 have been instrumental in fostering this financial upswing, translating into operational success and cementing the company’s position in the competitive investment market.
The significant decrease in net profit for the first nine months, compared to the same period last year, was attributed to a one-time adjustment linked to the health and wellness subsidiary, PureHealth. PureHealth, which remains an essential component of Alpha Dhabi’s expanding influence, concluded the Initial Public Offering of Ardent Health Partners on the New York Stock Exchange earlier in the year. This event marked a crucial milestone, yet adjustments related to it impacted Alpha Dhabi’s consolidated financial reports.
Strategic moves drive growth
Alpha Dhabi’s growth has not been accidental but is a testament to the well-laid plans of its leadership and board, which focused heavily on strategic, future-centric industries. Chairman Mohamed Thani Murshed Ghannam Al Rumaithi stated that 2024 has been transformative, underscored by an action-driven strategy. He emphasised that decisions made in recent years, particularly investments and acquisitions, continue to yield substantial returns. His sentiments capture the vision of Alpha Dhabi as it powers forward, aiming to maximise its growth potential through carefully chosen market ventures.
Equally optimistic was CEO Eng. Hamad Al Ameri, who described the past quarter as a landmark moment, forecasting further gains. Al Ameri highlighted the company’s strategy to navigate future prospects while building on its foundational pillars of adaptability and strategic insight. With their sights firmly set on maximising gains throughout the remainder of 2024 and into 2025, Alpha Dhabi’s leadership is clear in its objective to ensure continued financial robustness.
Key sectors and assets
Alpha Dhabi’s diverse portfolio has played a pivotal role in its current financial success. The industrial segment alone contributed a substantial share of revenue, underscoring Alpha Dhabi’s grasp of critical economic sectors. Real estate also featured prominently, supported by the steady growth of Aldar Properties, a vital part of Alpha Dhabi’s real estate assets. Aldar reported an increase in net profit, and its group sales continued to escalate, demonstrating the value of its strategic positioning in the market.
Further cementing Alpha Dhabi’s strength, its balance sheet showed a remarkable year-on-year asset increase. Assets now stand at AED 170.4 billion, highlighting the company’s firm financial foundation. Additionally, total equity has reached AED 93 billion, and a cash balance of AED 23.9 billion provides substantial liquidity, affording Alpha Dhabi the agility to make swift, impactful financial manoeuvres when required. The company’s core sectors and continued investments have ensured that its financial position remains sound and capable of sustaining long-term growth.
Construction and energy investments
The construction division also witnessed a strategic shift, with Alpha Dhabi divesting 49% of its construction arm, Alpha Dhabi Construction Holding (ADCH), to ADQ. Despite this divestment, Alpha Dhabi maintains a controlling stake, affirming its commitment to the sector and leveraging ADQ’s capabilities to solidify its position further. The move has strengthened ADCH’s reputation as a key player in the region, aligning with Alpha Dhabi’s broader goals of propelling strategic partnerships.
Additionally, Alpha Dhabi’s ventures into the energy market, particularly through NMDC Energy, continue to yield dividends. The subsidiary’s successful IPO on the Abu Dhabi Securities Exchange, oversubscribed multiple times, signifies the firm’s strength and appeal among investors. With further plans in energy-related ventures, Alpha Dhabi’s leadership remains committed to investing in sectors that align with long-term growth and regional economic stability.
Acquisitions and expansions
In line with its strategy, Alpha Dhabi’s partnership with ADNOC Drilling through the Enersol joint venture underscores the company’s expansive vision. Acquiring equity in global oil and gas diagnostic firms has been part of an overarching plan to strengthen its energy market presence. The acquisition spree, particularly since Enersol’s inception, indicates Alpha Dhabi’s aggressive yet calculated approach to global expansion. These initiatives, combined with Alpha Dhabi’s strategic focus on acquiring high-value assets, are reflective of its dedication to deepening its footprint across vital sectors.
Alpha Dhabi’s leadership continues to adapt to new market dynamics while steering the company towards achieving unparalleled success. The company’s blend of traditional sectors, like construction and industrials, with emerging industries, such as energy, has made it a unique player in the regional market. As Alpha Dhabi moves forward, the company’s capacity to remain agile and adaptable in its investments will be critical in shaping its future trajectory.
