Alpha Dhabi Holding Sells 49% Stake in Alpha Dhabi Construction Holding to ADQ

Alpha Dhabi Holding, a leading investment holding company in the UAE, on Tuesday said that it will divest 49% of its subsidiary Alpha Dhabi Construction Holding (ADCH) to ADQ, an Abu Dhabi-based investment and holding company.

While ADH will retain a 51% shareholding in ADCH, it will continue its commitment to the construction sector in strategic partnership with ADQ.

The partnership will combine the expertise and capabilities of ADCH and ADQ, solidifying ADCH’s position as an industry leader and an engine of the Emirate’s growth. The transaction is subject to customary closing conditions, including regulatory approvals.

Led by its subsidiary Trojan Construction, ADCH is recognised for its commitment to national development, prioritising safety, quality, and timely project delivery.

ADCH has a track record of contributing to the realisation of iconic projects in the UAE, including the Zayed National Museum and the Guggenheim Museum, as well as supporting critical infrastructure such as the national railway network.

ADCH also successfully executes large-scale residential community projects for locally based real estate developers, including Aldar, Modon Properties, and Emaar, the company said in a disclosure to Abu Dhabi Securities Exchange (ADX), where its shares are traded.

Transformative Step

Hamad Al Ameri, CEO & MD of ADH and the newly appointed Chairman of ADCH, said that their partnership with ADQ is a transformative step for ADCH, marking a new era of strategic growth and innovation.

“With a shared vision for excellence, this collaboration allows us to deepen our commitment to national development, enabling us to tackle complex, large-scale projects with a keen focus on safety, quality, and timely delivery. Together, we are poised to set new benchmarks in the dynamic construction industry, driving progress and prosperity in our region,” Al Ameri added.

Hamad Al Hammadi, Deputy Chief Executive Officer of ADQ, said that with a longstanding focus on investing in infrastructure assets in line with our mandate, we welcome the opportunity to invest in ADCH as it enters the next phase of its impressive journey in spearheading the development of landmarks and coveted real estate developments in the UAE.

“We are confident that ADCH will benefit from being part of our diverse portfolio and leverage the opportunities this will unlock,” Al Hammadi added.

The size of UAE construction market is estimated at $41 billion in 2024 and expected to grow to over $50 billion by 2029. The construction industry in Abu Dhabi has been witnessing continuous expansion, growing by 14.3% and contributing $25 billion to the Emirate’s GDP in the third quarter of 2023.

Significant large-scale investments in construction across Abu Dhabi provide new housing opportunities, create new employment, and contribute to the diversification of the Emirate’s economy.

An Array of Businesses

Established in 2013, Alpha Dhabi Holding is one of the fastest growing Abu Dhabi based investment holding companies, with more than 250 businesses spread across healthcare, renewable energy, petrochemicals and other industries such as real estate, construction and hospitality.

It is a strategic contributor to the UAE economy and is committed to drive continuous growth for its stakeholders through investments in emerging businesses, supporting innovation and diversity.

Alpha Dhabi Holding has delivered impressive full year 2023 financial results, reporting a group net profit of $3.62 billion, marking a significant increase of 25% year-on-year. These outstanding results reflected the group’s strategic implementation across key verticals and its unwavering commitment to generating enhanced shareholder value.