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Mubadala earns third highest score in Global SWF’s governance, sustainability, and resilience ranking
Abu Dhabi sovereign wealth fund Mubadala secured a top spot in Global SWF’s 2025 Governance, Sustainability, and Resilience (GSR) rankings — a global benchmark for best practices among state-owned investors — while other UAE funds made it to the top 10, according to its report (pdf). Mubadala also came in second globally in terms of capital deployed over the past 5.5 years — pouring in USD 9.6 bn — while the Abu Dhabi Investment Authority ranked 10th with USD 4.5 bn. (** Tap or click the headline above to read this story with all of the links to our background and outside sources.)The breakdown: Mubadala led the cohort, taking third place globally alongside other SWFs, with a score of 92%. ADQ and the Dubai Investment Fund followed in eighth place with a score of 72%. The Abu Dhabi Investment Authority (ADIA) and the Investment Corporation of Dubai (ICD) landed in 12th place with a score of 56%, while Dubai Holding came in 14th at 48%. Further down the list, the Emirates Investment Authority came in 19th place with a score of 28%, and Sharjah Asset Management came in 20th place with a score of 24%.UAE SOIs manage a collective USD 2.5 tn in assets as of 1H 2025, placing the country third globally. The UAE’s GSR score hit 49% this year, ranking 46th worldwide, with a 90% credit rating and a 68% score on the corruption perception index, according to the report. More love for home turf this year? The SWFs are dialing up their domestic investments in 2025. ADQ deployed 45% of its capital locally this year, up from an average of 35% in 2020-2024. Mubadala also bumped up its local investments to 15%, from 9% over the last five years.ICD Dubai placed third for 10-year annualized returns among global state-owned investors, with a return of 9.3%, followed by Mubadala in fifth place with 8.7%. DP World landed in 12th with 8%, while ADIA came in 27th with a 6.9% return.In terms of AUM: ADIA is the fifth largest SWF in terms of assets under management, at USD 1.1 tn. ICD Dubai followed at 17th with USD 400 bn, and Mubadala came in at 21st with USD 330 bn. ADQ currently holds USD 251 bn in AUM, while the Emirates Investment Authority holds USD 102 bn, Dubai Investment Fund holds USD 80 bn, and Dubai Holding holds USD 72 bn. Sharjah Asset Management is the smallest of the bunch, with USD 3 bn in AUM.Regionally, GCC sovereign wealth funds managed USD 5.9 tn in assets in 1H 2025 — accounting for 36% of global sovereign wealth fund (SWF) assets. They also deployed 36% of all sovereign investments during the same period, up from 32% in 2H 2024. Over the past five years, SOIs in the Middle East have steadily improved GSR scores, rising from 32% in 2020 to 48% in 2025.REMEMBER- Gulf sovereign wealth funds were reportedly set to remain the focus of growth and activity in SWF investments globally despite looming competition, due to their sizable assets and higher risk appetite both geographically and strategically.

Wednesday, 2 July 2025

M&A WATCH | EnterpriseAM
Adnoc Drilling is now in Oman and Kuwait
Adnoc Drilling inked a USD 112 mn agreement to acquire a 70% stake in the land drilling business of US oil and gas wells drilling company Schlumberger Middle East (SLB) in Kuwait and Oman with a mechanism in place to acquire SLB’s remaining 30% stake over time, according to a joint statement (pdf). The transaction is expected to close in 1Q 2026. This marks Adnoc Drilling's first inorganic expansion outside the UAE, underscoring the company’s ambition to evolve from a domestic giant into a regional player in the integrated drilling services market. The move comes as part of a broader strategy to diversify geographically and capitalize on a growing GCC energy services market. It follows the company's USD 1.7 bn Enersol JV with SLB and Patterson to tap into unconventional resources.The details: The transaction establishes a joint venture with SLB and grants the state-owned oil company immediate operational control of eight active rigs — two in Kuwait and six in Oman — already under long-term contracts with national oil companies. The rigs are fully operational, and the contracts extend into 2028, contributing an estimated USD 120 mn this year in revenue and EBITDA margins of over 38%. The agreement was made at an implied valuation of 4x EBITDA. The JV will be a “highly complementary and value-accretive addition” to Adnoc Drilling’s portfolio, CEO Abdulrahman Abdulla Al Seiari said. The new agreements will boost revenues to over USD 5 bn by 2026, CFO Yousef Salem told Asharq Business (watch, runtime: 1:46).Payment terms: Adnoc will pay an earn-out of USD 21 mn linked to the overall business performance, and USD 91 mn excluding potential earn-out, with the company planning to finance the transaction through its existing debt capacity. The final purchase price is subject to adjustments based on the net debt position (total debt minus cash) at the time of closing. Big goals ahead: Adnoc Drilling expects to operate more than 151 rigs by 2028. The company has been eyeing drilling businesses in Kuwait and Oman for a while since it was pre-qualified for operations in the two countries. The company had also earmarked USD 350 mn for acquisitions through its JV with Alpha Dhabi, Enersol, in 2H 2025 as part of USD 1 bn in planned capital expenditure for inorganic growth, which will include some USD 150 mn in acquisitions of rigs overseas in Kuwait and Oman, and another USD 500 mn for rigs and equipment inside the UAE, Salem told us previously.Market reax: Adnoc Drilling’s shares were up 1.7% to AED 5.3 at yesterday’s close.OTHER M&A NEWS-Investcorp Capital exits USD 550 mn in US multifamily assets: ADX-listed alternative asset manager Investcorp Capital has exited 12 US multifamily real estate assets across five states for a total of USD 550 mn, the company said in an ADX disclosure (pdf). The portfolio, which included a 432-unit apartment community in Atlanta, was sold at a premium despite softer market conditions. The assets were 94% occupied on average and located in key rental markets in Atlanta, Philadelphia, Missouri, and Florida.The sale marks another sale by Investcorp Capital as it aims to realize gains while reallocating capital into new assets. It follows the company’s USD 360 mn exit from its US industrial portfolio in April and its full divestment earlier this week from Indian budget fashion chain Citykart, which delivered a 4x return. More exits are expected from its Indian portfolio, and it also expanded into the Italian market through a takeover of payments firm Epipoli.AND- ICD offloads its stake in Corporación América Italia: Dubai’s investment arm, the Investment Corporation of Dubai (ICD), sold its 25% stake in airport operator Corporación América Italia (CAI) to the Corporación América Airports (CAAP), according to a press release. CAAP now fully owns CAI following this transaction.The details: The transaction took place through a share swap agreement, with CAAP providing over 1.9 mn newly issued shares to ICD as consideration for the 25% interest in CAI

Friday, 30 May 2025

EARNINGS WATCH | EnterpriseAM
Etihad Airways’ 1Q 2025 bottom line jumps in 1Q 2025 + ICD records strong 2024
Etihad Airways reported a 30% y-o-y increase in net income to AED 685 mn in 1Q 2025, according to an earnings release. Total revenues rose 15% y-o-y to AED 6.6 bn, driven by strong performance across both passenger and cargo operations.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Passenger revenue climbed 16% y-o-y to AED 5.5 bn, supported by increased capacity, network expansion, and higher flight frequencies. The airline carried 5 mn passengers during the quarter, up 16% from the same period last year. Cargo revenues also rose 8% y-o-y to AED 958 mn, despite a 4% decline in volumes, as improved yields helped offset the drop.On the operations side, Etihad ended the quarter with 98 aircraft in service, including the return of its sixth A380 and the delivery of a new A350-1000. Passenger load factor improved by one percentage point to 87%. The firm just recently said it will invest USD 14.5 bn to acquire 28 Boeing 787 and 777X aircraft during US President Donald Trump’s visit to Abu Dhabi, as it looks to meet its target of a 170-aircraft fleet by 2030. What’s next? Etihad is set to launch 16 new routes in 2025 and will roll out upgraded First Class services starting August, part of broader efforts to expand its premium offering and support network growth. The firm has also been gearing up for an IPO. MORE EARNINGS FROM ICD- Investment Corporation of Dubai’s (ICD) net income rose 11.1% y-o-y to AED 67.5 bn in 2024, according to its financial statements (pdf). The fund’s revenues increased by 12.7% y-o-y to AED 349.6 bn during the same period, while its total assets climbed 11% y-o-y to AED 1.5 tn.The breakdown: Banking and financial services accounted for 70% of assets and generated 27% of revenue, while transportation accounted for 17% of assets but contributed 45% of revenue. Oil and gas represented 3% of assets and brought in 19% of revenue, while other segments held 10% of assets and contributed 9% of revenue, according to ICD’s financial highlights and analysis. What’s next? ICD is preparing to launch an IPO of construction giant Alec Engineering & Contracting that could raise up to USD 500 mn. Alec tapped Emirates NBD Capital and JPMorgan Chase to work on the offering and Moelis is advising ICD.

Thursday, 22 May 2025

Arabian Construction secures AED 2 bn contract for Design Quarter development from Meraas
REAL ESTATE- #1- Meraas awards AED 2 bn contract for Dubai Design District project: Dubai Holding Real Estate subsidiary Meraas awarded a AED 2 bn contract to Arabian Construction Company (ACC) for the Design Quarter at d3, the first residential community in Dubai Design District, according to a Dubai Media Office statement. The project, featuring one low-rise building and two skyscrapers connected by a landscaped podium, is set for completion by mid-2027.#2- The Mohammed Bin Rashid Housing Establishment (MBRHE) has partnered with Dubai-based real estate developer Binghatti to develop and invest in sustainable housing in Dubai, according to the Dubai Media Office. Under the MoU, Binghatti Developers will offer MBRHE beneficiaries affordable housing units, and will explore the use of AI and advanced construction technologies to improve efficiency and sustainability in housing development.#3- Majid Al Futtaim Group plans to develop a residential and hotel project in East Cairo in partnership with Egyptian developer Midar, Ashraq Business reports, citing unnamed sources. The project will cover 1k acres within Midar’s 5.8k-acre Mada City, launched in April 2024. The agreement is expected to be signed in 3Q 2025. Representatives from Majid Al Futtaim Group declined to comment when approached by EnterpriseAM UAE.CUSTOMS-Abu Dhabi Customs gets more authority in latest restructuring: President Sheikh bin Zayed Al Nahyan has restructured the General Administration of Abu Dhabi Customs — designating it as an independent legal entity under the Economic Development Department and implementing new legislation to outline the organization’s updated role and responsibilities, according to a statement. The details: In addition to overseeing and authorizing the movement of goods into and outside of the emirate, its new responsibilities also include proposing customs-related policies and strategic plans. DEBT-Moody’s upgrades RAK Bank’s outlook to positive: Credit rating agency Moody’s affirmed National Bank of Ras Al Khaimah ’s (RAKBank) long-term deposit rating as Baa1, and upgraded its outlook from stable to positive for its long-term deposit and senior unsecured debt ratings, according to a statement seen by Enterprise. Its short-term deposit ratings stand at Prime 2, and its baseline credit assessment (BCA) and adjusted BCA at Baa3.Behind the upgrade: The outlook upgrade is down to RAKBank’s improved profitability and net interest margins, asset quality, segment diversification and growth in the bank’s wholesale franchise, and the likelihood of the bank receiving support from the government — which owns a 53% stake in RAKBank.TRANSPORT-#1- More details about Regent's USD 250 mn seaglider project: Electric seaglider developer Regent is set to generate over 1k high-tech jobs in Abu Dhabi over the next decade through its UAE manufacturing hub for electric flying ferries, Billy Thalheimer, Regent's co-founder and chief executive, told the National. The Rhode Island-based company expects to hire for roles in engineering, advanced manufacturing, and maintenance as production scales.In context: Regent and Abu Dhabi’s Strategic Development Fund agreed to form a JV last month to build the facility, backed by a minimum investment of USD 250 mn over 10 years, shared equally between both parties. The seagliders are set to begin operations in 2027.ALSO- Abu Dhabi’s Department of Municipalities and Transportation agreed to deploy seagliders in its fleet. Abu Dhabi Maritime will assess their feasibility for local waterways and logistics giant Aramex is exploring their potential for cargo transport.MARITIME- Vopak’s Fujairah terminal supplies its first bio-bunker fuel: Dutch independent energy storage operator Vopak’s joint-venture oil storage terminal in Fujairah — Vopak Horizon Fujairah — carried out its first bio-bunkering supply operations in the UAE, according to a statement. Vopak transported B24 bunker fuel — containing 24% fatty acid methyl ester with low sulphur fuel oil — from its oil storage terminal to the vessel. The companies involved in the operation were not disclosed.About Vopak Horizon Fujairah: The terminal is a JV with the Government of Fujairah, Kuwait’s Independent Petroleum Group, Royal Vopak and the UAE’s Horizon Terminals, according to its website. Vopak currently operates 32 terminals within its international network ISCC certified to store environmental products like sustainable aviation fuel, biofuels, and feedstocks, the statement adds. SPACE-Space42 + Viasat team up to advance 5G satellite connectivity: Abu Dhabi-based Space42 and US satellite firm Viasat inked an MoU to explore direct-to-device (D2D) satellite communications for smartphones, IoT applications, and next-generation mobile satellite services (MSS), according to a joint statement. In the initial phase, both companies will conduct technical and commercial studies on 5G D2D satellite communication solutions. These studies will explore narrowband Internet of Things (NB-IoT) and MSS, while aiming to develop an open, interoperable, 5G-compatible infrastructure.

Wednesday, 12 March 2025

IPO WATCH | EnterpriseAM
State-backed Alec Engineering targets USD 500 mn IPO in mid-2025
Dubai’s ICD readies USD 500 mn Alec Engineering IPO: Dubai's state-backed Investment Corporation of Dubai (ICD) is preparing to launch an IPO of construction giant Alec Engineering & Contracting that could raise up to USD 500 mn, Bloomberg reports, citing unnamed people familiar with the matter. The IPO — tentatively slated for mid-2025 — would mark Dubai's first major IPO of a state-backed company since Parkin last year.Advisors: Alec tapped Emirates NBD Capital and JPMorgan Chase to work on the offering, with Moelis advising ICD. Additional banks may join the syndicate as plans solidify.The details of the offering remain provisional, with specifics including the fundraising target and exact timeline still being finalized.The move would give renewed impetus to Dubai's privatization program, under which it planned to list 10 state-owned companies. Alec would be the seventh state-owned company to get a public listing as part of the program, after IPOs for Parkin, as well as utilities firm (Dewa), Dubai Taxi, toll operator Salik, business district developer Tecom, and cooling services firm (Empower). The UAE has a strong pipeline of IPOs for 2025: ADQ is reportedly preparing a USD 1 bn IPO for Etihad Airways on the Abu Dhabi Securities Exchange (ADX) in 2025;Alpha Data is reportedly planning a USD 200 mn listing on the ADX;Dubizzle Group has tapped banks for a 2025 IPO on the Dubai Financial Market (DFM);Hospitality group Five Holdings tapped advisors for a potential listing;Amanat Holdings is planning to list its education and healthcare units;and Shisha producer Advanced Inhalation Ritual is also rumored to potentially IPO.

Wednesday, 5 February 2025

EARNINGS WATCH | EnterpriseAM
ICD, Binghatti see bottomline growth in 2023
ICD- The Investment Corporation of Dubai's (ICD) net income rose 68% y-o-y to an all-time high of AED 60.8 bn in 2023, on the back of growth in the hospitality and real estate sectors, it said in an earnings release. The Dubai government’s investment arm booked a record AED 310.2 bn in revenues, climbing 16% y-o-y during the year on the back of “higher passenger traffic in transportation as well as the asset growth and higher interest rates in banking and financial services.”Breakdown: ICD’s revenues from its transportation segment rose 119% y-o-y, while revenues from its banking and financial services segment climbed 69% y-o-y. The state investor logged lower oil and gas revenues during the year, driven by the decline in global oil prices.ICD’s assets also grew 12% y-o-y to a record AED 1.32 tn, with banking assets climbing 16% y-o-y. Non-banking operations assets increased 5% y-o-y while reducing their indebtedness.BINGHATTI- Binghatti’s bottom line rose 138.8% y-o-y to AED 726.3 mn in 2023, according to its consolidated financial statements (pdf). The Dubai-based property developer’s revenues during the period more than doubled to AED 2.13 bn.Dividends: Binghatti will distribute AED 172.5 mn in dividends, “offsetting an additional contribution from shareholder of AED 92.6 mn and a net payable balance to shareholder amounting to AED 79.9 mn.”

Thursday, 30 May 2024

IPO WATCH | EnterpriseAM
ICD-backed Alec taps banks ahead of planned IPO
Construction firm Alec is moving forward with its planned IPO, with Dubai’s main investment entity appointing Emirates NBD Capital and JPMorgan Chase as advisors, Bloomberg reports, citing people familiar with the matter. The Investment Corporation of Dubai (ICD) also tapped Moelis & Co to advise on the IPO, which could take place as soon as in 2H 2024, according to the unnamed sources. The exact size and timing of the listing are still under discussion, the sources said.REMEMBER- ICD had held preliminary discussions regarding a potential IPO of Alec in March. Alec’s IPO would mark Dubai’s third IPO of the year, and the seventh company to list on the Dubai bourse as part of the government’s privatization plan to list 10 state-owned companies on the bourse. Parkin debuted on the DFM in March, raising AED 1.57 bn. There’s more in the pipeline: Amanat Holdings is reportedly looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year. Meanwhile, shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Over on the ADX, edtech firm Alef Education, Etihad Airways, and supermarket chain LuLu group have each tapped banks to advise on their transactions.

Monday, 20 May 2024

M&A WATCH | EnterpriseAM
Dubai Holding now holds a minority stake in Emirates NBD
Dubai Holding now holds a 14.84% minority stake in Emirates NBD, after Investment Corporation of Dubai (ICD), Dubai government’s main investment fund, transferred 937.5 mn of its shares in the bank to a subsidiary owned by Dubai Holding, the bank said in a disclosure to the DFM. The 14.84% stake in Emirates NBD is now owned by DH 7 LLC, a wholly owned subsidiary of Dubai Holding, Reuters reports. No details were provided on the value of the transaction. ICD’s current stake: Following the shares transfer, the ICD retains a 40.91% stake in the bank. ICD previously held 55.8% of Emirates NBD. About ICD: The Investment Corporation of Dubai (ICD) is the main sovereign investment fund of the government of Dubai. About Dubai Holding: Dubai Holding is the investment vehicle owned by Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum. The conglomerate’s portfolio includes real estate developers Dubai Properties and Meraas, the Tecom Group, and Jumeirah Hotels and Resorts. Sheikh Ahmed bin Saeed Al Maktoum chairs both Emirates NBD and Dubai Holding.

Tuesday, 28 November 2023