• 26 May 2015

    Private investment raising UAE healthcare quality, but staffing remains a challenge – according to EIU report commissioned by Waha Capital

    Abu Dhabi, 26 May 2015: Private investment is helping drive the United Arab Emirates towards its goal of implementing international best-practice in healthcare by 2021, but the sector needs to work harder to attract and retain skilled staff, according to an Economist Intelligence Unit report commissioned by Abu Dhabi-based investment company Waha Capital.

    In the report, called “Investing in quality”, senior executives in healthcare policy making, operational management and insurance provision in the UAE said growing private sector involvement and greater international accreditation are helping to lift quality standards markedly.

    This should persuade more people to seek healthcare services in the UAE, rather than traveling abroad, which can result in much higher expenses for families – often a cost borne by government budgets. A Gallup survey in 2012 showed that two in five Emiratis had a preference for treatment abroad.

    “The UAE authorities have rightly pinpointed healthcare as a priority area for private investment, and the policy is clearly working to raise standards. It is very encouraging that global accreditation bodies such as the Joint Commission International are now highly active in the country,” said Salem Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital. “The nature of competition means that credibility and reputation are key, especially in highly sensitive areas such as personal health.”

    He added: “As international best practice becomes common practice in the UAE, there will be no need to look overseas for care. This will not only alleviate pressure on government budgets, it will also enable patients to receive medical care and recuperate on their home turf amongst their families.”

    Waha Capital is investing in the healthcare sector through its wholly owned subsidiary, Anglo-Arabian Healthcare Group, one of the fastest growing healthcare companies in the country in terms of assets.

    While praising the improved climate for private investment in healthcare, the executives interviewed for the report pointed out two major challenges for the sector: human resources and varying regulations across the nation’s seven emirates.

    The growth of private healthcare provision has increased the number of doctors and nurses in the country – with those in the private sector jumping by over 40 percent in 2012 alone, when seven new hospitals opened.

    But with the number of healthcare workers needing to rise by 50 percent over the next six years to meet government targets, staff turnover remains high, the report found. This is partly because many developing country practitioners use the UAE as a path to a career in Western Europe and North America.

    The report found that private healthcare companies looking to expand across the UAE also find regulatory differences between emirates a challenge, particularly when it comes to licensing healthcare practitioners.

    “The UAE provides an excellent environment for private healthcare providers, and experienced management teams have the opportunity to build scale and raise operating and clinical standards,” said Mark Adams, Chief Executive Officer of Anglo Arabian Healthcare Group. “It’s clear that staffing is an issue for the sector, and it is up to operators to provide the right incentives to attract and retain skilled employees. However, I see this as a virtual cycle. As quality of healthcare provision rises, the UAE will be recognised by doctors and nurses as one of the most desirable places to work in the world, not a stepping stone.”

  • 24 May 2015

    Waha Capital wins “Cross border deal financing of the year” from The M&A Advisor for its hedging and financing transaction

    Abu Dhabi, May 24, 2015: Waha Capital, a leading Abu Dhabi-based investment company, has won the “Cross border deal financing of the year” award from US-based The M&A Advisor for its sale of Aercap Holdings NV shares. This announcement follows another award that the company received from Banker ME for the same transaction.

    Waha Capital carried out a hedging and financing transaction in two phases in 2014 on its stake in the world’s largest aircraft leasing firm, AerCap Holdings NV. The company effectively locked in the value of its AerCap stake by limiting downside equity market risk while preserving significant upside potential, and raised $1.1 billion (approximately AED 4 billion) in financing to be deployed in further investments and repayment of debt.

    The award, presented to Waha Capital at The M&A Advisors’ 2015 Awards Gala in New York, was held in conjunction with the 2015 International Financial Forum and featured over 300 of the world’s leading cross border M&A professionals. Since 1998, The M&A Advisor, headquartered in New York, and with offices in London, has been presenting, recognizing the achievement of and facilitating connections between the world’s leading mergers and acquisitions, financing and turnaround professionals.

    Commenting on the award and transaction, Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital said: “We are delighted to have received the Cross-border deal financing of the year award and honoured to have been the only company in the UAE to have received this recognition. The hedging and financing transaction not only reduced risk in our portfolio by locking in the value of our stake in AerCap, it also generated significant funding, providing us with a robust platform and capital for future growth. This transaction marked a milestone year for Waha Capital, helping us generate the highest earnings in our company’s history. I am especially pleased that the efforts of our talented investment team have been recognized by a prestigious and reputable organization such as The M&A Advisor.”

    Waha Capital manages a portfolio of direct investments across a number of sectors, including aircraft leasing, financial services, healthcare, energy, infrastructure and industrial real estate.

    The company looks to take majority stakes, when possible, in businesses operating in high potential sectors, occasionally in collaboration with co-investment partners.

  • 17 May 2015

    Waha Capital net profit increases 20.2 percent to AED 182.2 million in the first quarter of 2015

    ABU DHABI, 17 May 2015: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 182.2 million for the first quarter of 2015, a 20.2 percent increase from AED 151.6 million recorded a year earlier, with key portfolio companies and its Capital Markets division performing well.

    At Waha Capital’s Annual General Meeting held on 24 March 2015, shareholders approved a cash dividend distribution of AED 0.30 per share on eligible shares, which represents an increase of 140% from the previous year.

    Waha Capital, which manages direct principal investments as well as global securities portfolios, benefited from an increase in earnings per share at AerCap Holdings NV following the New York-listed company’s acquisition of International Lease Finance Corporation (ILFC) in mid-2014.

    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.

    Meanwhile, the Capital Markets division at Waha Capital, which is active in public credit and equity markets, expanded its business and produced healthy returns – outperforming its respective benchmarks from its inception.

    Commenting on the results, announced following a board meeting in Abu Dhabi, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:

    “The financial results recorded during this quarter demonstrate Waha Capital’s stature as a successful investment company rooted in Abu Dhabi, with a strong portfolio of regional and global investments. We have demonstrated sustained profitability through the strong performance of our diversified portfolio of direct investments and will look to invest up to AED 4 billion in sectors with high growth potential such as energy, infrastructure, healthcare and education over the next five years. Waha Capital has also successfully added to its asset mix by developing a strong capital markets capability and we expect to offer this expertise to third-party investors this year.”

    Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added: “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 AED 9.6 billion as of 31 March 2015, slightly lower than at the end of 2014 (AED 9.8 billion), mainly due to the reduction of the company’s cash balances and the revaluation adjustment in the AerCap Collar. Total shareholder equity increased to AED 3.6 billion in the first quarter of 2014, from AED 2.5 billion a year earlier.

    Investments summary

    New York-listed AerCap Holdings NV, the world leader in aircraft leasing in which Waha Capital owns a 12.6 percent stake, continued to see strong growth following the acquisition of ILFC. 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 1,640 aircraft that were either owned, managed or under contract to purchase. The company has signed financing transactions for AED 5.9 billion ($1.6 billion).

    Dunia Finance, the UAE-based consumer finance company in which Waha Capital owns a 25 percent stake, reported a 43.2 percent rise in net profit to AED 58.7 million in the first quarter. The company has undertaken several strategic cost management initiatives such as reengineering business processes and renegotiating costs with vendors and landlords, which reduced its cost-to-income ratio to 29.7 percent in the first quarter from around 34.7 percent a year earlier.

    The Anglo Arabian Healthcare (AAH) Group, which was acquired by Waha Capital in mid-2013, achieved consolidated revenue of AED 48.8 million in the first quarter, compared to AED 30.4 million a year earlier. AAH continued to expand its footprint by making further acquisitions in specialty healthcare services. AAH acquired majority stakes in Health Bay Polyclinic and in Oras Medical Centre LLC and signed a long-term exclusive contract with a large specialty hospital in Al Ain to operate and manage all laboratory related work.

    Waha Capital co-founded the $300 million MENA Infrastructure Fund in 2007 and has a 17.9 percent limited partner investment in it. The fund, whose other co-sponsors are Fajr Capital and HSBC Bank Middle East, is currently invested in four projects: Alexandria International Container Terminals in Egypt, Qurayyah Independent Power Project (IPP) in Saudi Arabia, United Power Company in Oman and Sohar Power Company in Oman. The Fund continued to pay a dividend yield of c. 7% per annum.

    National Petroleum Services (NPS), in which Waha Capital owns a 20.15 percent stake, continued to position itself for long-term growth, particularly in emerging markets, and to make significant enhancements to the quality of its services. The company secured contracts worth AED 82.5 million in the first quarter, taking total outstanding contracts-in-progress to AED 1.63 billion. NPS recorded revenues of AED 171.5 million in the first quarter, compared to AED 141.3 million in the same period of 2014.

    Meanwhile, the Capital Markets division at Waha Capital continued to grow its contributions to the company’s profits. The division has built a solid track record managing a portfolio of global credit market investments and regional equities, consistently outperforming its respective benchmarks. Waha Capital’s investment management subsidiary is preparing to launch asset management services to third-party investors later this year.

    Waha Capital’s industrial real estate development, ALMARKAZ, has seen strong leasing demand due to the project’s high-quality infrastructure, strategic location, flexibility and scale. At the end of the first quarter, the project’s 90,000 sqm of small industrial units (SIUs) had been fully leased. ALMARKAZ is exploring a number of growth plans including the expansion of SIU space, and development of new products such as warehouses and light industrial units on the remaining available area of serviced land within Phase I of the development.

Share Price

8/3/2015 10:52:55 AM
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Waha Capital CEO & MD Salem Al Noaimi Interview with Prospect Group


  • Waha Capital CEO & MD Salem Al Noaimi announces New Healthcare Investment

    “Waha Capital today announced a new investment in the healthcare sector through its acquisition of Anglo Arabian Healthcare (AAH), a healthcare group with investments focused on the Northern Emirates and Abu Dhabi. One of the objectives of this investment is to diversify Waha Capital’s sources of income, in line with our business strategy which we formulated 4-5 years ago. We have thankfully succeeded in implementing this strategy, and this investment complements it.

    Entering the Healthcare sector is very important to Waha Capital as it holds high growth potential and is a government priority for the UAE. We will look to increase our investments within this sector in the next three to five years, and plan to make this sector a greater contributor to Waha Capital’s revenues.”