Abu Dhabi-based conglomerate Alpha Dhabi Holding is planning to deploy AED 30bn (USD 8bn) over the next five years, supported by recent divestments that have strengthened its capital base. Derek Nicholson, Chief Strategy Officer at Alpha Dhabi, said the additional liquidity positions the group to accelerate growth initiatives and pursue new opportunities.
Strategic exits, including Alpha Dhabi’s divestment from Modon, which generated AED 5.3bn, form part of a broader strategy to fast-track international expansion and optimise capital deployment across its portfolio.
The group follows a dual-track investment model. One strand focuses on supporting portfolio companies in executing growth plans through strong governance frameworks, while the other centres on deploying Alpha Dhabi’s own capital, recycling funds via IPOs, and reinvesting into high-growth sectors.
Alpha Dhabi currently operates across 45 countries, which account for around 13 per cent of group revenue. Its acquisition strategy prioritises scale, operational synergies and sustainable returns, rather than expansion driven solely by geographic footprint.
Nicholson said the group remains selective in its global approach, seeking opportunities that align with its risk appetite and strategic objectives. He noted that Alpha Dhabi evaluates prospects across Asia and Europe, as well as eastern and western markets, where scale and long-term value creation are evident.
The conglomerate continues to favour conservative leverage, while viewing the funding environment more positively as interest rates peak and begin to ease. This shift, Nicholson said, supports a more balanced approach to financing growth.
Portfolio companies are encouraged to take on debt selectively, provided it remains within industry-appropriate benchmarks and aligns with individual business plans and cash flow profiles, he added.
Alpha Dhabi is also assessing opportunities within Abu Dhabi’s debt markets to diversify its funding sources, including the possibility of issuing debt instruments.
IPO plans remain dependent on market conditions, although Nicholson said any of the group’s private portfolio companies could consider a listing when valuations and sentiment are favourable. Trojan, a major construction business, is among those under preliminary review, with a focus on further value enhancement before any potential flotation.
