Abu Dhabi-based investment holding firm focused on technology, Multiply Group, reported a significant increase in their 2022 full-year profit, as their revenue surged by over three times. The net profit attributable to the company’s owners for the 12-month period ending in December soared to AED 18.4B ($5B) from AED 185M for the same period the previous year, as stated in a filing to the Abu Dhabi Securities Exchange. In addition, Multiply Group reported a rise in investment and other income.
The company’s revenue for the period also increased to AED 1.12B from about AED 372M, and their total assets more than tripled to AED 41.2B. Chief executive Samia Bouazza said the past year was “transformative” and added that “We made a series of significant strategic investments that accelerated the growth of the company while, at the same time, our operating companies continued to deliver strong recurring earnings.”
“Our diverse portfolio has reached a scale that positions us well to continue growing our verticals and move forward with our strategy of focusing on cash-generating businesses with agile strategies.” Multiply, a subsidiary of Abu Dhabi’s International Holding Company (IHC), was listed on the ADX in December 2021 through a private placement deal that raised AED 3.1B and was 16 times oversubscribed, according to The National News. Its investments include stakes in businesses such as Emirates Driving Company, Viola Communications, Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.
Last year, it invested AED 92M in musician and businesswoman Rihanna’s intimate apparel venture Savage X Fenty. It also bought 80% of shares in IHC subsidiary International Energy Holding to expand its portfolio. In the third quarter, Multiply was added to the S&P UAE BMI Liquid 20/35 Capped Index and the S&P UAE Shariah Liquid 35/20 Capped Index.
The indexes track the performance of the most liquid and Sharia-compliant companies in the UAE as well as the S&P UAE BMI. Both the Chimera S&P UAE UCITS ETF and the Chimera S&P UAE Shariah ETF now include the company. “Multiply Group is well-positioned for 2023 and beyond to build on the strong performance of 2022 for a number of reasons,” chairman Andre Sayegh said… Firstly, the UAE economy is on strong growth momentum and secondly, corporate profitability will remain solid due to increasing economic activity that is supported by positive government regulations and projects.”
The UAE economy has made a significant recovery from the slowdown brought on by the coronavirus over the past two years, and the pace of economic momentum has continued to improve as a result of government initiatives, higher oil prices, a strong performance by the real estate sector, and a recovery in travel and tourism. The UAE Central Bank estimates that the GDP expanded by 3.9% in 2021 before rising by 7.6% last year, the highest rate in 11 years.
According to the Central Bank, the country’s economy would expand overall by 3.9% in 2023, while the non-oil sector will rise by an anticipated 4.2%. “Looking ahead, with a liquidity position of AED 34.97B in liquid assets and AED 1.03B in cash and bank balances, moderate debt, a global network of deal origination partners, and while building an in-house team of vertical experts, Multiply Group will continue to capitalise on market trends and remains in a strong position to carry on with its strategy of investing in transformative, cash-generating businesses that are exploring new revenue models in transitioning industries,” the company said.
