Construction UAE wealth fund ADQ buys stake in Abu Dhabi builder By Andy Sambidge April 16, 2024, 9:58 AM 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. NewsletterGet 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. World Bank raises UAE’s economic growth outlook Infrastructure projects to lift UAE construction sector Abu Dhabi real estate deals hit $4bn during first quarter 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.
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