Alpha Dhabi Holding Partners With ADQ To Strengthen Construction Sector

Alpha Dhabi Holding (ADH) has recently made a strategic move by divesting 49% of its subsidiary, Alpha Dhabi Construction Holding (ADCH), to ADQ, a prominent investment and holding company based in Abu Dhabi. This significant partnership ensures that ADH maintains a majority stake of 51% in ADCH, underlining its ongoing dedication to the construction sector through a strategic alliance with ADQ. This collaboration is set to enhance ADCH's leadership in the industry and further drive the Emirate's growth. The completion of this transaction is pending customary closing conditions, including the necessary regulatory approvals.

Hamad Al Ameri, CEO and MD of ADH and the newly appointed Chairman of ADCH, expressed his enthusiasm about the partnership with ADQ, describing it as a transformative step for ADCH that heralds a new era of strategic growth and innovation. Al Ameri emphasized the shared commitment to national development and the ability to undertake complex, large-scale projects with an emphasis on safety, quality, and timely delivery. This collaboration is expected to establish new standards in the construction industry, contributing to progress and prosperity in the region.

Hamad Al Hammadi, Deputy Chief Executive Officer of ADQ, also shared his positive outlook on investing in ADCH as it embarks on the next phase of its development journey. He highlighted ADCH's role in leading the development of landmarks and sought-after real estate projects in the UAE. Al Hammadi is confident that ADCH will thrive as part of ADQ's diverse portfolio, leveraging new opportunities that arise from this partnership.

The UAE construction market is on an upward trajectory, with projections estimating its value at US$41 billion in 2024, expected to rise above US$50 billion by 2029. Abu Dhabi's construction industry has seen robust growth, expanding by 14.3 percent and contributing AED25 billion to the Emirate’s GDP in the third quarter of 2023 alone. This growth is fueled by significant investments in construction across Abu Dhabi, which not only provide new housing opportunities but also create employment and aid in diversifying the Emirate’s economy.

This strategic partnership between ADH and ADQ represents a pivotal moment for both entities and the broader construction industry in Abu Dhabi. By combining their expertise and resources, ADCH is set to play a crucial role in shaping the future landscape of the UAE, driving economic growth and development in one of the most dynamic sectors.

With inputs from WAM