Abu Dhabi’s International Holding Company grew net profit by 181 per cent in 2022 as the listed vehicle controlled by Abu Dhabi’s Sheikh Tahnoon bin Zayed al-Nahyan reported another year of exceptional growth.
Profit at the rapidly growing conglomerate grew from Dh11.6bn ($3.2bn) in 2021 to Dh32.6bn last year, thanks to what the company described as subsidiaries’ performance and global acquisitions.
IHC’s fortunes in recent years have perplexed bankers owing to its meteoric rise under Sheikh Tahnoon, the national security adviser of the United Arab Emirates, who became chair of the conglomerate in 2020.
IHC’s results come as Sheikh Tahnoon, who also chairs Abu Dhabi’s state holding company ADQ and the country’s largest lender First Abu Dhabi Bank, was this week elevated as chair of the $790bn Abu Dhabi Investment Authority.
Promotion to head the emirate’s investment vehicle signalled a further consolidation of power around the UAE’s new ruler and Sheikh Tahnoon’s full brother, Sheikh Mohammed bin Zayed al-Nahyan. He assumed the presidency on the death last year of their half-brother Sheikh Khalifa, who used to chair Adia.
Fourth-quarter profit almost doubled from Dh4.3bn in 2021 to Dh8.3bn in the same period last year, which the company said had been derived from positive business performance despite unfavourable global conditions. Revenues for the year grew 78 per cent to Dh50.9bn, down from the 305 per cent increase recorded in 2021.
“The external environment we faced was mixed in some of the key markets. However, our strategy . . . aligns us with the major engines of global growth and we see strong progress across our strategic businesses,” said Syed Basar Shueb, IHC’s chief executive.
IHC’s investment highlights include a 50 per cent stake in Turkish energy company Kalyon and a Dh734mn investment into the Colombian neobank Lulo.
The firm also invested Dh7.35bn into three portfolio companies of India’s Adani group, which has been accused of fraud and stock market manipulation by a US short seller. Adani has denied the claims.
IHC’s total assets increased 156 per cent from Dh89bn at the end of 2021 to Dh282bn at the end of 2022.
The number of IHC subsidiaries rose from 302 in 2021 to 482 and 41 joint ventures and associates in 2022, spanning 20 countries in Asia, Africa, Europe and the Americas. The conglomerate focuses on nine segments, including energy, food, health, real estate and leisure.
IHC said it would target expansion in 2023 across sectors such as utilities, food and technology.
“We are looking forward to the opportunities that 2023 will bring as we remain committed to deliver stronger financial performance in the next few months,” Shueb said.
This article has been corrected as IHC invested Dh7.35bn into three portfolio companies of India’s Adani group, not Dh735bn
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