Key Highlights:
- Market Position: Rajiv Jain, Founder and Chief Investment Officer of GQG Partners, emphasized Alpha Dhabi’s substantial market cap of approximately AED 112.2 billion, noting its position as a major player in the global industry. He expressed optimism about the company’s prospects in the region, citing Abu Dhabi’s favorable GDP growth potential.
- Performance Insights: Syed Basar Shueb, CEO of International Holding Company, highlighted that despite recent stagnation in the Abu Dhabi Securities Exchange (ADX), Alpha Dhabi has shown strong performance. This resilience, combined with the company’s alignment with GQG’s investment strategy focused on high-quality, stable stocks, made Alpha Dhabi an attractive target for investment.
- Strategic Hub: GQG has established a new investment hub in the Abu Dhabi Global Market, underscoring the region’s significance for global asset management. Jain remarked that investing in Abu Dhabi aligns with GQG’s strategy to seek high-quality assets in countries with strong fundamentals.
Financial Performance of Alpha Dhabi:
- Q3 Results: Alpha Dhabi reported a group net profit of AED 11.1 billion for the nine months ending September 30, 2024, marking a 4% decrease from the previous year primarily due to a one-time adjustment linked to PureHealth. However, the operating net profit rose by 83% to AED 7.5 billion, indicating robust activity across key business sectors.
- Revenue Growth: The company achieved a revenue of AED 44.2 billion, reflecting a 36% year-on-year increase, with significant contributions from various divisions:
- Industrial: AED 18.5 billion
- Real Estate: AED 13.2 billion
- Construction: AED 7.6 billion
- Services & Others: AED 4.9 billion
- Financial Strength: Alpha Dhabi’s total assets reached AED 170.4 billion, a 21% increase year-on-year, with a cash balance of AED 23.9 billion and total equity of AED 93 billion, showcasing a strong financial position.
Leadership Remarks:
- Chairman’s Statement: Mohamed Thani Murshed Ghannam Al Rumaithi commented on 2024 being a pivotal year for Alpha Dhabi, driven by strategic investments and acquisitions that are beginning to yield substantial returns.
- CEO’s Vision: Hamad Al Ameri noted that the recent quarter marked significant growth for Alpha Dhabi, reflecting the success of their strategic investments in high-growth industries. He indicated plans for further strategic initiatives aimed at enhancing the company’s portfolio.
Overall, GQG Partners’ investment in Alpha Dhabi highlights both firms’ commitment to leveraging growth opportunities in Abu Dhabi’s thriving market, aiming for sustained progress and value creation in the future.
