Waha Capital Achieves 21% Increase In Net Profit For H1 2024

Waha Capital PJSC reported a 21% year-on-year rise in net profit attributable to shareholders, reaching AED205 million in the first half of 2024. The company's net operating income also saw a 6% increase, totalling AED529 million during this period. This growth was attributed to higher fee income, significant third-party capital inflows into Waha Investment, and strong performance in the Private Investments sector.

The company is in the process of refinancing its existing US$500 million revolving credit facility, which is set to mature in mid-August 2024. This move aims to ensure prudent balance sheet management and position Waha Capital to invest in emerging growth opportunities over the coming years.

Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, commented on the company's performance amidst challenging global macroeconomic conditions. "Despite challenging global macroeconomic conditions, Waha Capital demonstrated robust financial performance in the first half of 2024, achieving a return on average equity of 13.1%. The Waha Investment business continued its strong track record by securing AED691 million in new third-party capital, highlighting institutional investors' confidence in our flagship funds."

Al Muhairi also noted that the Private Investments division has bolstered the company's balance sheet through successful value realisation across various assets. Additionally, Waha Land remains a key component of the company's strategy, contributing to growth and providing consistent rental yields.

Mohamed Hussain Al Nowais, Managing Director of Waha Capital, highlighted the strategic value and resilience of their diversified business model reflected in their first-half earnings. "Key drivers contributing to our gains included increasing third-party capital commitments in our flagship funds and substantial mark-to-market gains in our Private Investments business. This further validates our multi-faceted capital allocation strategy and rigorous approach to risk management," he noted.

The company’s focus on prudent financial management and strategic investments has positioned it well for future growth. The refinancing of its revolving credit facility is expected to provide additional flexibility for capital allocation towards emerging opportunities.

Overall, Waha Capital's performance in H1 2024 underscores its ability to navigate economic challenges while maintaining robust financial health and pursuing strategic growth initiatives.

With inputs from WAM