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ADIH to Create Investment Fund to Buy Firms in Distress

ABU DHABI - The Abu Dhabi Investment House (ADIH) is studying to launch a fund to acquire distressed assets which would have a positive performance once the global economic situation stabilises, a top official said.

“The investment house will continue to expand geographically to chase business opportunities and would diversify its investment portfolio by including two new business sectors of clean energy and pharmaceuticals,” said Jowa’an Awaidha Al Khaili, Chairman of ADIH, on the occasion of releasing company’s financial performance for 2008.

The investment house saw a net profit of Dh260 million, reflecting an 18 per cent year on year increase from Dh220 million in 2007.

Al Khaili said the board has approved the distribution of 40 per cent cash dividend.

He termed the profit figure as exceptional in view of the current market conditions, as the investment house focused on identifying unique investment opportunities for growth in new sectors and markets, including North Africa, Asia and Europe.

ADIH’s total income for 2008 was Dh427 million, a 36 per cent year-on-year increase from Dh315 million in the previous year.

The balance sheet expanded to Dh1.542 billion, an increase of 81 per cent compared to December 2007’s Dh853 million, reflecting a strong business growth driven by an increase in client investments in ADIH overall funds and projects.

Total equity for 2008 rose by 63 per cent reaching Dh984 million, recording Dh1.27 earnings per share in comparison to total equity of Dh605 million in 2007 with Dh1.10 earnings per share.

ADIH Managing Director Rashad Janahi said that with an IRR of 20.2 per cent, the company made a successful final exit of the Arabi Private Equity Fund.

The company entered into partnership with Kuwait’s Gulf Finance House and Ithmaar Bank of Bahrain forming a “Vision 3 Alliance” to develop funds and projects in the agriculture, infrastructure, and hospitality sectors.

The investment house last year launched an Indian Entertainment City Fund, a $400 million Shariah compliant fund to invest into a mixed use real estate project in India.

The company launched a $3 billion mega luxury living, leisure, and entertainment project in Qatar, apart from real estate projects in Morocco and Lebanon.

haseebhaider@khaleejtimes.com