Alpha Dhabi’s financial results for the first quarter were impressive, with a net profit of AED 7.3B, which marks a 161% YoY increase (compared to AED 2.8B in Q1 2022). This increase includes a fair value gain due to Pure Health Holding LLC’s derecognition.
The Group’s revenues also surged significantly, reaching AED 12.8B – a YoY increase of 56% (compared to AED 8.2B in Q1 2022). The strong growth in revenues was primarily driven by the robust performance of the existing real estate and industrial portfolio.
Alpha Dhabi’s growth strategy involves pursuing acquisitions and investments, and it has recently announced a partnership with Mubadala to co-invest in global credit opportunities. The two entities plan to collectively invest up to approximately AED 9B (equivalent to $2.5B) over the next five years, according to WAM.
This investment will leverage Mubadala’s long-term and strategic partnership with Apollo, one of the world’s largest alternative asset managers, to gain access to high-quality private credit investment opportunities. Mubadala will have an 80% ownership stake in the joint venture entity based in Abu Dhabi Global Market, with Alpha Dhabi holding the remaining 20%.
In addition to co-investing with Mubadala, Alpha Dhabi’s diversification strategy includes expanding its portfolio and capitalizing on investment opportunities in new markets. This recent transaction marks Alpha Dhabi’s entry into the private credit market, further supporting its growth strategy.
Alpha Dhabi’s portfolio expansion beyond the UAE is contributing to its growth, with overseas revenue accounting for AED 0.9B in Q1 2023, a 7% YoY increase.
The Group’s balance sheet is robust, with total assets of AED 120.6B, a 129% YoY increase driven by strong investment activity. Alpha Dhabi maintains a solid cash position of AED 16.6B, which will support its growth and expansion initiatives across sectors and geographies. The Group’s strong operating model, financial position, capital deployment track record, and agile investment approach position Alpha Dhabi to continue driving growth, capitalizing on investment opportunities, and generating shareholder value 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.”
“We have started this year robustly, with our diversified portfolio delivering results which continue the momentum from last year. 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.”
