L’IMAD tightens control over TAQA

Abu Dhabi’s L’IMAD Holding has deepened its grip on TAQA after its subsidiary Abu Dhabi Power Corporation bought a further 8.09 per cent stake in the listed power and water utility, lifting its holding to 98.12 per cent.

The transaction, disclosed on Wednesday, involved the acquisition of 9.1 billion TAQA shares from Two Point Zero Group. Based on TAQA’s closing share price that day, the stake was worth about AED21.56 billion, or $5.87 billion, making it one of the more significant ownership moves in Abu Dhabi’s listed utilities sector this year.

Two Point Zero Group said it had sold its entire TAQA holding to AD Power as part of portfolio optimisation efforts. Financial terms beyond the share transfer were not disclosed. The deal leaves TAQA with an even narrower public float and places one of the emirate’s most strategic infrastructure companies almost entirely under the control of L’IMAD, the sovereign investment vehicle chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

TAQA, formally Abu Dhabi National Energy Company, is central to the emirate’s power and water system. Its operations span electricity generation, water desalination, transmission, distribution and energy investments, with assets across the UAE and overseas markets. The company is listed on the Abu Dhabi Securities Exchange and has been used by the emirate as a key platform for utility consolidation and energy-transition investments.

The move follows a broader reshaping of Abu Dhabi’s sovereign investment architecture. L’IMAD emerged as a major state investment platform after the consolidation of Abu Dhabi Developmental Holding Company, known as ADQ, under its umbrella earlier this year. That restructuring placed a wide range of infrastructure, transport, energy, food, healthcare and industrial assets inside a fund estimated to control about $300 billion.

The expanded TAQA holding reinforces L’IMAD’s role as a vehicle for long-term control of domestic strategic assets rather than a conventional financial investor. Abu Dhabi’s sovereign wealth system already includes some of the world’s largest state funds, and the elevation of L’IMAD has added another powerful institution to an investment landscape shaped by oil revenues, industrial policy and global diversification.

For TAQA, the ownership shift is unlikely to alter day-to-day operations immediately, but it strengthens the alignment between the utility and Abu Dhabi’s wider economic planning. The company has been pursuing growth in regulated power and water networks, renewable energy exposure and international infrastructure. Its role in Masdar’s renewables business, where it holds a leading stake, gives it a direct link to Abu Dhabi’s clean-energy strategy.

The concentration of ownership may also affect investor perceptions of TAQA’s market profile. A smaller free float can reduce liquidity and limit the influence of minority investors, while state backing can support credit strength and long-term capital access. Utilities with dominant government shareholders often benefit from policy stability, though minority investors typically watch governance, related-party transactions and dividend policy closely.

TAQA’s strategic importance has grown as electricity demand across the Gulf rises, driven by population growth, industrial expansion, cooling requirements, digital infrastructure and energy-intensive projects. The UAE has also been expanding its clean-energy capacity while maintaining secure baseload supply through gas-fired power, nuclear energy and renewables. Water security remains another core priority, with desalination capacity tied closely to urban and industrial development.

The transaction also points to continuing consolidation among Abu Dhabi-linked entities. Two Point Zero Group, which exited TAQA through the sale, is part of a wider network of investment companies that have been reshaped as the emirate refines its holdings across technology, energy, finance and infrastructure. The sale allows capital to be redeployed while placing TAQA more firmly under a single sovereign-controlled shareholder.