Skip to content Skip to Search
Skip navigation

UAE wealth fund ADQ buys stake in Abu Dhabi builder

By Andy Sambidge
The under-construction Zayed National Museum in Abu Dhabi Creative Commons
The under-construction Zayed National Museum in Abu Dhabi
  • Alpha Dhabi Holding makes deal
  • 49% of subsidiary ADCH divested
  • Major construction jobs underway

UAE sovereign wealth fund ADQ is acquiring a stake in the construction company building the Guggenheim and Zayed National museums in Abu Dhabi.

Alpha Dhabi Holding (ADH), an investment holding company, announced in a filing to the Abu Dhabi Stock Exchange on Tuesday that it will divest 49 percent of its subsidiary Alpha Dhabi Construction Holding (ADCH) to ADQ.

The value of the deal was not disclosed. ADH will retain a 51 percent shareholding in ADCH.

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

Led by its subsidiary Trojan Construction, ADCH has a track record of building major projects in the UAE, as well as supporting critical infrastructure such as the national railway network. 

ADCH has also executed large-scale residential projects for real estate developers including Aldar, Modon Properties and Emaar Properties.

The transaction, which is subject to regulatory approvals, comes as the construction sector plays an increasingly important role in Abu Dhabi’s non-oil economy.

Estimates published last month by the emirate’s statistics office revealed that construction activity increased by more than 13 percent in 2023 compared to 2022. The added value of the sector to the economy reached more than AED97 billion, the highest in 10 years, equivalent to 8.5 percent of GDP. 

In its statement, ADH said the size of the UAE construction market is estimated at $41 billion and expected to grow to over $50 billion by 2029. 

ADH, established in 2013, has more than 250 businesses spread across healthcare, renewable energy, petrochemicals, real estate, construction and hospitality.

According to its website, ADQ’s investments span key sectors of the UAE’s economy and contributed 22 percent to Abu Dhabi’s non-oil GDP in 2022.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]