IHC Plans $24 Billion Investment as Part of Portfolio Reshuffle

IHC plans to double its asset base by 2030, aiming for Dh800 billion ($217 billion), compared to Dh462 billion as of the third quarter.

International Holding Company (IHC), the largest publicly traded company in the United Arab Emirates, is preparing to invest around $24 billion over the next nine months. At the same time, it also plans to sell its shares in two to three companies as part of its plan to reshuffle its portfolio.

The IHC strategy was to ensure the company’s assets are positioned for optimal growth and returns.

Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, has helped the company establish a reputation to make investments in a dynamic and diversified approach.

Chief Executive Syed Basar Shueb has outlined a roadmap for the company to focus its investment on mining, energy, and industrial projects that align with IHC’s goals to expand beyond domestic borders.

Now, IHC wants to spend between $20 billion and $24 billion on new opportunities and projects. The company nurtures its portfolio regularly. Every 18 months, IHC thoughtfully reviews its holdings, letting go of businesses that have matured or no longer fit the broader vision, and redirecting resources to promising opportunities. In this current phase, the company plans to sell its stakes in two or three companies to align its portfolio with new trends and future growth.

IHC has made decisive moves, such as selling its major stake in Abu Dhabi’s property developer Modon Holding. This move was to stay true to its policy of not letting any one sector dominate the portfolio.

Multiply Group, one of IHC’s subsidiaries, sold Pal Cooling for a value of $1.1 billion. These deals will bring fresh capital into the business, so that the company can focus on new opportunities across industries and borders.

IHC has made a smart move in strengthening its portfolio by creating 2PointZero Group, a merger of 2PointZero, Multiply Group, and Ghitha Holding. This group, carrying a value close to $33 billion, will concentrate on the energy and consumer industries. The leadership team is optimistic that this combined force will provide steady, meaningful growth each year, as the world has an increasing demand for energy and the rising potential in food and mining markets.

IHC is expanding its portfolio. The company has built a copper business from scratch. Additionally, they have bought a stake in Alphamin Resources, a major tin producer in the Democratic Republic of the Congo, to strengthen IHC’s position in the international mining industry.

The company maintains an open mind about bringing companies together in the portfolio, keeping in mind that they should benefit each other for growth.

IHC plans to double its asset base by 2030, aiming for Dh800 billion ($217 billion), compared to Dh462 billion as of the third quarter. The company has expanded beyond the UAE, with over 60% of its assets now overseas. Both the United States and India play major roles, each holding 25% of the company’s total assets, while Europe and Africa give the company a well-balanced global presence.

By acquiring a stake in Sammaan Capital in India for $1 billion, the company is showing its serious commitment to expanding in South Asia.

It is also looking for opportunities in South America, Central Asia, and the broader Middle East, with a particular focus on Saudi Arabia.

IHC aims to generate revenue of Dh130 billion this year by building an impressive portfolio of businesses. The company’s strategy is to continually invest in new opportunities, grow, and make strategic exits when the timing is right. Through this, they aim to strengthen their reputation in the dynamic and competitive business.