Finance

UAE’s Alpha Dhabi aims to double profit to $2.7 billion in 2022

United Arab Emirates-based conglomerate Alpha Dhabi (ALPHADHABI.AD), the fourth most valuable listed company in Abu Dhabi, aims to roughly double its profit next year to 10 billion dirhams ($2.72 billion), its chief executive said on Thursday.

The firm plans more acquisitions and expansion internationally, CEO Hamad Al Ameri told Reuters in an interview. It is actively exploring opportunities, particularly in Egypt and Saudi Arabia.

Alpha Dhabi, which has 25 subsidiaries under five major verticals – industrials, healthcare, capital, construction and hospitality, is looking at possible investments in real estate, construction, healthcare, petrochemicals, energy and green energy, he said.

The firm posted 5.2 billion dirhams in profit this year, it said on Tuesday. Its board proposed no dividend.

“The whole concept of ‘no dividends and keep growing’ is new in the market here, in the region,” Al Ameri said.

“Most of the investors are going to take the dividend and invest it again, so why don’t we invest it – as they are a believer in our vision – and keep growing?”

Alpha Dhabi does not currently need to raise debt but is in talks with regional and international banks for potential loans, depending on deal flow, Al Ameri said.

It is also exploring soliciting a credit rating from ratings agencies should it decide to issue bonds in the future, though it has no current plans to do so, he said.

Alpha Dhabi is a subsidiary of IHC. Both are among the top five listed companies in Abu Dhabi in terms of market capitalisation.

IHC in turn is 74% owned by Royal Group, a firm owned by Sheikh Tahnoun bin Zayed Al Nahyan, who is the United Arab Emirates’ national security adviser and a brother of the country’s de facto ruler, Crown Prince Mohammed bin Zayed.

Pure Health, a subsidiary of Alpha Dhabi that has played a key role in COVID-19 screenings in the UAE, is planning an initial public offering late in the second quarter or in the third quarter of this year. read more

($1 = 3.6726 UAE dirham)

Reporting by Yousef Saba Editing by Alexandra Hudson

This article was originally published by Reuters.

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