UAE conglomerate Al Habtoor Group (AHG) has announced plans to list more than a third (35 percent) of its shares next year, as revenues of the privately-owned business surged during the first ten months of the year.
The company’s founding Chairman, Khalaf Ahmad Al Habtoor, revealed the listing plans during an interview with Al Arabiya TV, according to Reuters. Al Habtoor also said on social media that the latest financial results reflect the strength of the UAE economy.
“The numbers speak, and I’m glad they bode well for excellent results. Our results are a reflection of the performance of UAE,” the chairman said.
In a statement, AHG reported that its revenues between January and October this year went up by 37 percent compared to the same period in 2019, exceeding previous expectations and surpassing the levels seen prior to the COVID-19 pandemic.
All of the company’s hotels performed “exceptionally well”, Al Habtoor said, with the hospitality business registering a 43 percent increase over the same period in 2020.
AHG’s car leasing business, Diamondlease, also expanded its fleet by more than 20 percent this year to reach more than 12,000 vehicles, with 90 percent utilisation, while its Emirates International School-Jumeirah, has registered more than 3,680 students.
“This good performance in 2021 is only the beginning. I am expecting a great year ahead in 2022, as the numbers are showing,” Al Habtoor said.
The company has presence in several markets overseas, but more than 80 percent of its investments are in the UAE.
According to Al Habtoor, all sectors of the economy are faring well due to one of the highest vaccination rates in the world, rebound in tourism and activities related to the major events and conferences held in the country.
AHG is the latest UAE company to announce listing plans amid a recent push to boost Dubai’s stock market size to 3 trillion dirhams. Dubai has recently revealed it would list 10 government-owned companies and launched a market-making fund worth 2 billion dirhams ($544 million).
The Dubai Financial Market, which operates the local stock exchange, also announced on Tuesday a set of new incentives to encourage initial public offerings and listings on the stock market. The incentives are targeted at privately-owned businesses in sectors that are doing well, including technology and pharmaceutical.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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