Abu Dhabi-listed Alpha Dhabi Holding will sell a 49% stake in its construction subsidiary to investment conglomerate ADQ as part of a diversification push.
The stake is currently held by Alpha Dhabi Holding through the other major Abu Dhabi holding company IHC. ADH will retain a 51% stake in the construction company.
The move is aimed at combining “the expertise and capabilities” of Alpha Dhabi Construction Holding (ADCH) and ADQ, Alpha Dhabi said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“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,” added Hamad Al Ameri, CEO and Managing Director of ADH and the newly appointed Chairman of ADCH. “We are poised to set new benchmarks in the dynamic construction industry.”
The size of the transaction was not disclosed.
ADCH, along with its subsidiary Trojan Construction, has worked on projects such as the Zayed National Museum and the Guggenheim Museum, and critical infrastructure such as the national railway network. It has also worked on projects for major property developers Aldar, Modon and Emaar.
Alpha Dhabi has more than 250 businesses across health care, renewable energy, petrochemicals, real estate, construction and hospitality. The company’s construction and property portfolio contributed 19% and 23%, respectively, to the total revenue. In 2022, the company became the parent company of Aldar Holdings
ADQ has 25 companies under its umbrella spanning sectors including energy, utilities, food and agriculture, health care, pharmaceuticals, mobility and logistics.
The UAE construction market is estimated at $41 billion in 2024 and is expected to grow to over $50 billion by 2029, according to Mordor Intelligence. In Abu Dhabi, the construction industry grew by 14.3% in the third quarter of 2023, according to official data.