GQG invests $500m in Alpha Dhabi

GQG Partners, a prominent global asset management firm, has announced a $500 million investment in Alpha Dhabi.

Rajiv Jain, Founder and Chief Investment Officer of GQG Partners, said: "With a market cap of about AED 112.2 billion, Alpha Dhabi is a business of meaningful size in the industry, globally. We are quite excited about the longer-term headroom the company has in the region. We also are excited to continue our engagement with Abu Dhabi more generally, which we believe has good GDP growth potential with solid fundamentals."

Syed Basar Shueb, CEO of International Holding Company, commented: “Despite recent stagnation in the overall ADX, individual companies like Alpha Dhabi have demonstrated strong performances. This resilience and growth potential in specific sectors within the Abu Dhabi market have likely contributed to GQG's investment decision. GQG Partners has a preference for investing in high-quality stocks that offer stability and growth potential. This aligns with Alpha Dhabi's performance as one of the best-performing companies on the ADX, making it an attractive investment opportunity.”

Rajiv Jain added: "Investing in Abu Dhabi aligns with our strategy of seeking high-quality assets in countries with strong fundamentals. We believe that the market's strategic value will continue to grow. GQG Partners has established a new investment hub in the Abu Dhabi Global Market, highlighting the region's importance for capital markets and the global asset management industry. This move signifies our commitment to expanding our presence in key markets and leveraging the strategic value of Middle East and Abu Dhabi's financial ecosystem.”

The announcement came as Alpha Dhabi Holding announced a group net profit of Dh11.1 billion for the nine-month period ending 30 September 2024. The 4 per cent decrease from the same period last year is due to a one-time adjustment related to PureHealth

Operating net profit of Dh7.5 billion represents an 83 per cent increase from the same period last year and highlights the pace of activities which Alpha Dhabi has embarked upon across key business areas.

Strong set of financial results continue to reflect the holding company’s strategic implementation across key verticals and its commitment to generating enhanced shareholder value. Of equal significance, the growth experienced across sectors is a direct result of strategic acquisitions and investments made since 2022.

The Group posted revenue of Dh44.2 billion, an increase of 36 per cent year on year (YoY), with key contributions coming from various business divisions, comprising Dh18.5 billion from Industrial, Dh13.2 billion, from Real Estate, Dh7.6 billion from Construction, Dh4.9 billion from Services & Others.

Alpha Dhabi has also bolstered its balance with total assets at Dh170.4 billion, a 21 per cent increase yoy, while the company’s cash balance was at Dh23.9 billion. Total equity was at Dh93 billion underscoring the depth and agility of its financial position.

Mohamed Thani Murshed Ghannam Al Rumaithi, Chairman of Alpha Dhabi Holding, said: “2024 has been a year of action for Alpha Dhabi where we’ve made significant leaps forward as an organisation across key areas. Our robust financial performance this quarter, with group net profit soaring to Dh11.1 billion, has come to define this relentless pace of growth. More specifically, our performance has been shaped by the strategic decisions we made in recent years such as investments and acquisitions, as these continue to bear fruit and deliver impact. As we focus on the remainder of the year, we aim to continue pushing forward with our current momentum to maximise new and existing areas of growth.”

Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “This has been a landmark quarter in what is shaping up to be a memorable year for Alpha Dhabi where we’ve grown exponentially to be bigger and better than before. We continue to demonstrate the power of strategic investments made across diverse, high-growth, future-centric industries, with our robust financial performance this quarter signifying our ambition and adaptability, as well as offering a glimpse into what’s still to come. Now, as we narrow our sights on the rest of 2024 and the beginning of 2025, we’ll increasingly look to make further strategic decisions that we’re confident will add more depth and sophistication to our diverse portfolio, enabling us to grow to even greater heights.”