(MENAFN- Khaleej Times) In the key sectors Waha Capital plans to double its exposure by 2017.
Abu Dhabi: Abu Dhabi’s investment company Waha Capital is planning to invest Dh4 billion in high-growth sectors such as energy infrastructure healthcare and education over the next five years.
This was stated by Waha Capital chairman Hussain Jassem Al Nowais in a comment after a board of directors meeting in Abu Dhabi which reviewed the financial performance of the investment company and announced a 20.2 per cent year-on-year growth in net profit to Dh182.2 million in the first quarter of the year.
In December last year the investment company which is part of Mubadala Development Company hinted plans to invest Dh4 billion in high growth businesses. In a presentation on its website the investment firm said it plans to invest Dh2 billion in the oil and gas sector; Dh500 million in the healthcare sector which has a CAGR of 13 per cent per annum to $19 billion in 2018; education up to Dh500 million; power and infrastructure up to Dh1 billion; and Dh2 will be invested in oil and gas sector.
In the key sectors Waha Capital plans to double its exposure by 2017 according to the presentation. The stake in real estate would multiply to 21 per cent from eight per cent as of now; financial services four per cent from two per cent; capital market 26 per cent from 13 per cent; power and infrastructure 10 per cent; healthcare four per cent from one per cent; aviation 43 per cent; and education four per cent.
Waha Capital’s highly successful $388 million investment in 2010 in New York’s aircraft leasing company AerCapital resulted in windfall gains with earnings per share of $4.61 compared to $2.58 in 2013 – an increase of 79 per cent.
During the first quarter AerCap purchased 17 new aircraft signed lease agreements for 67 aircraft delivered 32 aircraft under contracted lease agreements and executed the sale and part-out transactions for 20 aircraft. At the end of the quarter its portfolio consisted of 1640 aircraft that were either owned managed or under contract to purchase. The company has signed financing transactions for Dh5.9 billion.
Strong earnings boosted net profit by 20.2 per cent to Dh182.2 million for the first quarter of 2015 as key portfolio companies and its capital markets division performing well. UAE consumer finance company Dunia Finance also experienced strong growth while other portfolio companies including Anglo Arabian Healthcare (AAH) and National Petroleum Services (NPS) also made significant progress on the business development front.
Salem Rashid Al Noaimi CEO and managing director of Waha Capital said: “Having consistently produced strong return on equity in recent years thanks to our sound investment strategy and long-term patient view on major investments Waha Capital remains fully focused on value creation and on growing our diversified portfolio of investments. We are positioned for growth and well placed to take advantage of exciting new opportunities across the Mena region.”
Waha Capital’s assets now stand at Dh9.6 billion as of March 31 2015 slightly lower than at the end of 2014 mainly due to the reduction of the company’s cash balances and the revaluation adjustment in the AerCap Collar. Waha Capital co-founded the $300 million Mena Infrastructure Fund in 2007 and has a 17.9 per cent limited partner investment in it.
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