Alpha Dhabi outlines new payouts strategy

Alpha Dhabi Holding moved to reassure investors with confirmation of a new three-year dividend framework and a parallel plan to repurchase a portion of its shares, signalling a strategic effort to sustain value creation across its portfolio. The Abu Dhabi-listed conglomerate said the policy is designed to provide predictable returns while supporting the group’s long-term expansion.

The company said the proposed framework targets annual dividends of AED 2 billion, with a planned 5 per cent yearly increase over the three-year period. The commitment marks one of the more structured payout approaches adopted by a major Abu Dhabi investment group, reflecting confidence in balance-sheet strength and recurring income streams across its holdings in construction, healthcare, real estate, and industrial ventures. The strategy, outlined by the board on Monday, reflects a broader move among large regional investment firms to align returns with growth cycles and diversify capital-management tools.

Alpha Dhabi also confirmed it intends to launch a share buyback programme worth up to AED 1 billion, with purchases capped at 10 per cent of its issued share capital. The company noted that the programme is subject to regulatory approvals and will be executed in phases should market conditions allow. The move places Alpha Dhabi among a group of major Gulf firms that have used share repurchases to support liquidity and enhance shareholder value during periods of market volatility.

Executives familiar with the firm’s strategy indicated that both measures were evaluated against forward earnings expectations and the operational performance of subsidiaries, including Aldar Properties and Pure Health. Market analysts said the scale of the proposed dividends is substantial relative to the group’s financial disclosures, but not inconsistent with the strong profit streams generated over the past two financial years. The company has reported multi-billion-dirham earnings powered by acquisitions, consolidation of key assets, and contributions from fast-growing healthcare and construction verticals.

The dividend proposal arrives at a time when Abu Dhabi’s equity market has been characterised by a rotation towards companies with predictable cash flows. Investors will monitor whether Alpha Dhabi maintains capital expenditure at its earlier pace, given the sizeable annual payouts planned. Portfolio expansion has been a core part of the group’s growth model since its formation and accelerated listing on the Abu Dhabi Securities Exchange in 2021. The business has built strategic stakes across multiple sectors, aiming to position itself as a diversified national conglomerate with global ambitions.

Market reaction has focused on the balance between growth and returns. Equity traders tracking the stock noted that while the pledge of AED 2 billion in annual dividends offers clear visibility to shareholders, the company will need to maintain earnings momentum to meet the rising payout commitment. The targeted annual 5 per cent increase suggests confidence in strengthened operational performance and synergy gains from past acquisitions, though analysts cautioned that such growth may require continued cost discipline as well as stable macroeconomic conditions.

The share buyback programme has drawn attention for its potential effect on liquidity and price support. Buybacks by companies in the region have become more common as a mechanism to stabilise share prices during volatile periods and to signal management’s view that current valuations do not fully reflect underlying fundamentals. Alpha Dhabi’s planned allocation of AED 1 billion positions it among the more assertive repurchasers in the Gulf markets over the coming year, should the programme receive final regulatory clearance.

Investors have also focused on how the schemes align with the group’s broader capital-allocation priorities. The company’s board has maintained that alongside strategic acquisitions, shareholder rewards remain a core component of its financial policy. The adoption of a structured three-year payout plan introduces greater transparency, offering analysts a clearer basis for forecasting cash distribution and long-term investment appetite.