Abu Dhabi's IHC posts more than 200% jump in second quarter profit to $3.5bn

Abu Dhabi’s International Holding Company (IHC) reported a staggering 220 per cent increase in second-quarter profit, reaching AED12.8 billion ($3.5 billion). This marked a significant leap compared to previous quarters, driven primarily by robust performances in its energy and mining divisions. Revenue for the quarter rose by more than a third year-on-year to AED33.4 billion, while earnings per share more than tripled to AED5.89, according to a filing submitted to the Abu Dhabi Securities Exchange. For the first half of 2026, net profit attributable to shareholders climbed 225 per cent annually to AED17.9 billion, while overall revenue increased nearly 35 per cent to AED64.9 billion. Growth was particularly pronounced in IHC’s energy and mining businesses, where revenue surged 355 per cent year on year to AED12.3 billion in the six months ending June. Revenue from hospitality and leisure activities more than doubled to AED5.2 billion, reflecting a 127.7 per cent increase during the same period. The surge in profitability underscored the effectiveness of IHC’s business model, which combines operational efficiency, prudent capital allocation, and active portfolio management. According to IHC CEO Syed Basar Shueb, these strategies have enabled the company to generate substantial returns. Revenue growth was observed across multiple sectors, including financial services, technology, food, real estate and construction, and marine and dredging, which saw increases of 62.8 per cent, 35.2 per cent, 26.9 per cent, 10.4 per cent, and 4.5 per cent respectively. In June, IHC initiated the first tranche of its second AED5 billion share-buyback program, allocating AED1.8 billion initially. Shueb emphasized that the company’s first-half results were a reflection of sustained team efforts and strategic investment decisions made over several years. He noted the encouraging growth across various operating sectors and the ongoing expansion of IHC’s international investment platform. IHC, chaired by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and National Security Adviser, stands among the most valuable holding companies in the Middle East. It operates through over 1,300 subsidiaries, with direct units including Alpha Dhabi Holding, 2PointZero, EasyLease, Palms Sports, Emirates Stallion Group, and Al Seer Marine. Portfolio companies encompass Aldar Properties, Al Ain Farms, PureHealth, marine services provider NMDC, and produce firm NRTC. Despite geopolitical tensions, notably the Iran conflict, IHC has maintained its investment strategy, continuing to allocate capital globally. In an earlier interview, Shueb stated that the company plans to invest up to $8 billion in the coming six months across sectors such as mining, energy, and financial services. He highlighted India as a crucial component of the country’s global investment strategy, outlining diverse investments in energy, industry, and property, emphasizing India’s strategic importance over mere opportunism. Key investment highlights for the first half of 2026 included expanding exposure to technology firms like OpenAI and SpaceX, securing a long-term liquefied natural gas supply agreement in Mexico, entering Pakistan’s financial sector via the acquisition of First Women Bank, and partnering on an $11.5 billion aluminium project with India’s Adani Group. Within the UAE, IHC participated in notable projects, including a AED110 million transaction utilizing the dirham-backed stablecoin DDSC on the ADI Chain blockchain network, supporting the UAE’s initiative to lead in regulated digital assets. Shueb reiterated that IHC would continue to strategically invest in businesses and partnerships where the company could contribute expertise, generate sustainable value, and align with the economic goals of the regions in which it operates. The company recognizes the significance of maintaining strong financial health and continues to pursue opportunities that enhance both shareholder value and regional economic development.