2023-07-13 13:50:11
agency saidbloombergA group of companies controlled by a prominent member of the ruling family in Abu Dhabi lost about $30 billion of their market value this year, which contributed to the emirate’s benchmark index falling behind its regional peers.
The agency said in a report, Thursday, that the FTSE ADX index in the Abu Dhabi market has fallen this year by about 6 percent since January 2023, which is a significantly weak performance compared to the Dubai and Riyadh financial market indexes, which rose more than 10 percent.
The agency added that this was partly due to the decline in shares of the International Holding Company (IHC) by nearly four percent.
The National Security Adviser of the United Arab Emirates, Sheikh Tahnoon bin Zayed Al Nahyan, heads the International Holding Company, which has a value of $ 236 billion, according to the agency.
The shares of the International Holding Company have risen in recent years, which has helped the Abu Dhabi Stock Exchange achieve gains of close to 100 percent since the beginning of 2021.
Bloomberg indicates that the shares of the “Alpha Abu Dhabi Holding” company and the “Multiplay” group, which are affiliated with the International Holding Company, fell by more than 20 percent in 2023, two years after they achieved significant gains.
Junaid Ansari, head of investment strategy and research at KAMCO Investment Company, says, “The current performance of the Abu Dhabi Stock Exchange is partly related to profit-taking for companies that have achieved significant gains, including the International Holding Company and newly listed shares.”
Shares of First Abu Dhabi Bank, the country’s largest bank headed by Sheikh Tahnoon bin Zayed, have fallen by a fifth this year.
The agency quotes an official spokesman for the International Holding Company as saying, “It is reasonable that the company shows commendable operational and financial performance, but it is witnessing a decline in its share price.”
He added, “The UAE economy is still strong, but the ambiguity in some global markets, where Alfa Abu Dhabi and Multiply own assets, contributed to the decline in their share prices.”
The global holding company has investments in Elon Musk’s “SpaceX” company, as well as investments in local fisheries and also with the largest real estate developer in Abu Dhabi.
The agency’s report shows that the International Holding Company has a leading position in the campaign to diversify the economy in the UAE and benefit from the investment of oil resources.
The shares of the company owned by Sheikh Tahnoun bin Zayed have increased by about 42,000 percent since 2019, which has brought it into the list of the best and largest performers in the world.
The International Holding Company is controlled by the Royal Group, a conglomerate headed by Sheikh Tahnoun, the brother of the President of the United Arab Emirates.
Sheikh Tahnoon is also the chairman of the Abu Dhabi Investment Authority, which is worth $790 billion.
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