Abu Dhabi's IHC has no plans to sell Aldar stake, CEO says

International Holding Company, the largest listed company in the UAE, has no plans to sell its stake in Abu Dhabi real estate major Aldar Properties, contrary to media and market speculation, its chief executive has said.

IHC, the biggest shareholder in Aldar through its Alpha Dhabi Holding unit, remains a "strategic long-term investment within its diversified portfolio" as Abu Dhabi and the wider UAE enjoy a property boom, a company statement on Thursday said.

Alpha Dhabi, along with its subsidiaries, currently has a 31.63 per cent stake in Aldar. The second biggest shareholder in the company is Mamoura Diversified Global Holding, a unit of Abu Dhabi sovereign wealth fund Mubadala Investment Company.

Speculation intensified last week when IHC announced it was divesting its entire stake in Modon Holding as it seeks to avoid "over-concentration" of its portfolio in any one sector. Bloomberg, citing informed sources, later reported IHC was also planning to divest part of its stake in Aldar.

However, IHC on Thursday said it continues to remain confident in Abu Dhabi’s "growing and resilient real estate sector" and is committed to a "broader portfolio optimisation and divestment strategy".

The company remains "committed to supporting Aldar as it continues to shape Abu Dhabi’s real estate landscape and drive sustainable development across the UAE", IHC chief executive Syed Shueb said.

Separately, Alpha Dhabi said it maintained its "commitment" to Aldar, as the developer is a key part of its diversified portfolio. "Alpha Dhabi ... categorically denies recent market speculation regarding any intention to divest its stake in Aldar Properties," it said in a statement to The National.

IHC, a major part of Abu Dhabi's efforts to diversity its non-oil business sectors, has more than 1,300 subsidiaries, with investments in sectors including asset management, health care, real estate, financial services and IT.

Last month, IHC announced the merger of three of its portfolio companies, 2PointZero, Multiply Group and Ghitha Holding, to create a Dh120 billion ($33 billion) energy and consumer sector-focused investment platform.

IHC has been on an investment and acquisition spree as it aims to double its asset base to $218 billion by 2030. It has shown interest in expanding its portfolio assets in India and fast-growing economies in Central Asia, as well as in the US.

Aldar, meanwhile, continues to expand its portfolio amid the rising demand for housing in Abu Dhabi and the UAE, as real estate remains one of the key pillars of the national economy.

Abu Dhabi's biggest listed real estate company last week said it would be investing about $1 billion in new projects in Yas Island and Al Shamkha to boost its residential, commercial and logistical offerings.

The robust momentum in the UAE’s economy – the Arab world's second largest – driven by the government's diversification plan, has also supported market activity.

Government measures, such as residency permits for retired and remote workers, and expansion of the 10-year golden visa programme, have also boosted foreign investment flows into the Emirates' property market over the past few years.

IHC's shares closed down 0.37 per cent at Dh399.50, while Aldar settled 0.45 per cent higher at Dh9.01 on the Abu Dhabi Securities Exchange on Thursday.