Alpha Dhabi's 2023 profit surges 45% on revenue boost

Net profit attributable to owners of the company for the year climbed to $2.89bn

The company’s total assets reached Dh140.4 billion by the end of last year. Khushnum Bhandari / The National

Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, reported a 45.4 per cent surge in its full-year profit driven by higher revenue.

Net profit attributable to owners of the company for 2023 climbed to Dh10.6 billion ($2.89 billion), the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue jumped 14 per cent annually to Dh45.4 billion, with the company’s portfolios in industrial, property and construction contributing 37 per cent, 23 per cent and 19 per cent of the total, respectively.

The company said all its business lines posted strong growth, which is reflected by the “increased revenue reported across these segments”.

“We are in a position where we can confidently assess and invest in growth opportunities across a diverse spectrum of sectors and geographies,” said Hamad Al Ameri, chief executive of Alpha Dhabi.

“The group’s focus on strategic acquisitions, geographic diversification and rigorous corporate governance practices across the board ensures that the company continues to deliver strong and sustainable returns for its shareholders.”

The company said 2023 was marked by the “positive impact born out of the strategic acquisitions and investments made since 2022, especially the consolidation of Aldar Properties starting second quarter of 2022”.

In 2022, the company increased its stake in Aldar Properties to become the parent company of the property developer.

The move reaffirmed Alpha Dhabi’s position as the largest shareholder in the biggest listed property company in the emirate, as it continues to expand its investment portfolio.

Alpha Dhabi, which was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021 and 2022.

Last year, the company announced a venture with Mubadala Investment Company to co-invest in global credit opportunities.

The partners aim collectively to invest up to Dh9 billion over the next five years, leveraging Mubadala’s strategic partnership with Apollo, one of the world’s largest alternative asset managers, to access private credit investment opportunities.

In May, Alpha Dhabi acquired a 36.4 per cent stake in the National Corporation for Tourism and Hotels for Dh730 million to become the single largest shareholder in the hospitality owner, manager and operator.

In July, it also signed a preliminary agreement with Turkish conglomerate Limak Group to explore business opportunities in various sectors amid the strengthening of ties between the UAE and Turkey.

“As we advance into 2024, we are on a strong footing to enhance our core investment activities through strategic partnerships and acquisitions,” Mr Al Ameri said.

The company’s total assets reached Dh140.4 billion and a cash position of Dh20.2 billion by the end of last year.