ADDH Holding Company Announced

His Highness Sheikh Mohamed bin Zayed Al Nahyan chairing the Abu Dhabi Executive Council meeting in the UAE capital (Wam)

11 Abu Dhabi entities come under one roof. Abu Dhabi Ports, Abu Dhabi Airports among 11 entities to come under holding company. The new wealth fund will have assets of about $250 billion.

Abu Dhabi is creating a new holding company for seven state-owned firms with operations ranging from airports to power supply to make it easier for them to raise debt and improve services, three sources told Reuters.

The new holding company, Abu Dhabi Development Holding Company (ADDHC), will be led by Mohammad Hassan Al Suwaidi, a former executive of Abu Dhabi state fund Mubadala, and the seven firms could eventually be privatised.

The holding company’s portfolio will include Abu Dhabi Airports, Abu Dhabi Ports, Abu Dhabi National Exhibition Centre, Abu Dhabi Media, Abu Dhabi Power Company, Khalifa Industrial Zone Abu Dhabi, and Abu Dhabi Health Services Co, said two of the sources.

These are companies which have received state investment for infrastructure and growth.

The government media office said it would name the companies when the information became publicly available.

“The holding company will allow the firms to operate at arm’s length,” a source familiar with Abu Dhabi’s plans said.

It will be able to raise debt for its units, who can also raise debt themselves rather than through the department of finance, separating them from the emirate’s own debt plans.

Abu Dhabi, rated AA by S&P and Fitch and Aa2 by Moody’s, issued its last international bonds in 2017, raising $10 billion. A rise in oil prices last year meant the emirate had no urgent need to borrow further.

The new holding company, Abu Dhabi Development Holding Company (ADDHC), will be led by Mohammad Hassan Al Suwaidi, a former executive of Abu Dhabi state fund Mubadala, and the seven firms could eventually be privatised.

The holding company’s portfolio will include Abu Dhabi Airports, Abu Dhabi Ports, Abu Dhabi National Exhibition Centre, Abu Dhabi Media, Abu Dhabi Power Company, Khalifa Industrial Zone Abu Dhabi, and Abu Dhabi Health Services Co, said two of the sources.

These are companies which have received state investment for infrastructure and growth.

The government media office said it would name the companies when the information became publicly available.

The Executive Council of Abu Dhabi has issued a resolution defining the companies and development entities under the newly formed Abu Dhabi Developmental Holding Company (ADDHC), with the list including key construction organisations in Abu Dhabi, which was formed as a joint stock company following a law issued in March 2018 by President HH Sheikh Khalifa bin Zayed Al Nahyan.

In accordance with Law No. 2 of 2018 that established ADDHC, the ownership of the Abu Dhabi Government’s shares in Abu Dhabi Ports Company, Abu Dhabi Airports Company, Modon Properties, Abu Dhabi Sewerage Services Co, and Abu Dhabi General Services Co (Musanada) has been transferred to ADHHC.

ADHHC also owns Abu Dhabi Government’s former shares in Abu Dhabi Health Services Co, National Health Insurance Co, and Abu Dhabi National Exhibitions Co, plus Two Four 54 and its group of companies.

The Executive Council has also approved transferring the Higher Corporation for Specialised Economic Zones (Zones Corp) to become a wholly owned subsidiary of ADDHC.

The decision comes after Abu Dhabi Power Corporation was named as a wholly owned subsidiary of ADDHC in February 2019.

ADDHC’s mandate is to monitor and guide these companies, driving them to achieve excellence in terms of performance, productivity, and quality in line with the Abu Dhabi Leadership’s vision, according to the UAE’s state news agency, Wam.

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