Abu Dhabi Investment House (ADIH) reports net profit of AED17 million (US$5 million) for the fiscal year 2009:

·         A strategy to adapt to the current financial environment

·         Increased provisions to better insulate ADIH from any further negative effects stemming from the economic downturn.

·         Introduction of investment products related to Real Economy sectors

Abu Dhabi, UAE - 5 April 2010- Abu Dhabi Investment House (ADIH) announced yesterday that ADIH made a net profit of AED17 million (US$5 million) where the Board of Directors approved the distribution of 5% in cash dividends.

Rashad Y. Janahi, Managing Director said, ‘we are very pleased with the 2009 positive results given the challenging economic environment we currently operate in. This success is attributed to ADIH’s clear strategy and resilient business model where risks were mitigated given the extensive research and due diligence work conducted throughout. Also, by raising provisioning requirements, we will be better positioned to weather any further turbulence from the economic downturn.’

This year’s results are a reflection of ADIH’s prudent methods and entry into diversified real economy sectors that haven’t been affected by the financial crisis. Total income for 2009 was at AED207 million (US$56 million) achieving net profit of AED 17 million (US$5 million). Total assets rose by 4% compared to year 2008 to reach AED1599 million (US$435 million) while total equity reached AED911 million (US$248 million) recording 4.6% return on capital with AED0.08 (US$0.02) earnings per share.

Janahi further said, ‘I would like to take this opportunity to thank the Central Bank of the UAE, Ministry of Commerce, our stakeholders including valuable shareholders, investors, ADIH executive management and employees for their hard work and commitment to achieve these positive results given the current economic environment.’

On the other hand, Fawaz Ali Al Jowder, ADIH CEO said, ‘the great results in the light of a strained financial market are testament of the Board’s strategy to position ADIH as the investment house of choice within the MENASA region. We have incorporated the Abu Dhabi 2030 Vision within our strategy to diversify our investment product offering especially in real economy sectors and empowering our human capital.’

 2009 Achievements

The Al Wataniya Development Fund was launched to develop a commercial office building in the heart of Abu Dhabi’s business district. The fund was successfully closed after receiving significant interest from investors and the project is currently being implemented.

Wellpharma Holding, ADIH’s investment arm in healthcare and pharmaceutical sectors launched the Wellpharma Medical Solutions Fund in November 2009. The fund will invest in the development and operation of a local production facility that will specialize in the manufacturing and distribution of high-quality Intravenous (IV) Solutions for medical treatments.

 During 2009, ADIH was able to conduct two fund exits: a partial exit from the Porta Reef fund; and a full capital exit from the Beirut Gate fund.

Sales activities in some of the ADIH projects were affected by the current market conditions where delay in payment was experienced and payment extensions were requested by developers. ADIH is working diligently to find and devise solutions for its investors through debt restructure and rescheduling with local and regional financial firms. Having said that, ADIH projects are currently being implemented as planned in Abu Dhabi, Bahrain, Qatar, India and North Africa – with 95% complete in Porta Reef; 80% complete in Areen Homes; 60% complete in Sunset Hills; as well as the ongoing progress of infrastructural work in Qatar Entertainment City and India Entertainment City.

In 2009, ADIH won the ‘Fastest Growing Company’ from Arabian Business, in addition to numerous prestigious awards for its projects throughout the year. Also, ADIH was selected to be one of the Global Growth Companies, a World Economic Forum community for fast growing companies.

 Corporate Social Responsibility

ADIH is a firm believer to give back to the community through contributions to societies and national initiatives in addition to training university students.

2010 Strategy