Higher returns from equity investments bring quarterly lift for Amanat Holdings

Amanat Holdings, the Dubai company that specialises in investments in healthcare and education assets, reported a 12.7 per cent increase in second-quarter net profit thanks to higher income from its equity investments.

Net profit attributable to equity holders for the three months to the end of June rose to Dh13.4 million, the company said yesterday in a statement to the Dubai Financial Market, where its shares are traded. However, total revenue for the period fell 22.4 per cent year-on-year due to lower income from deposits.

The share of profit of investments in associates rose 53 per cent to Dh11.7m during the period.

Amanat’s net income for the first six months of the year also climbed 12 per cent to Dh27.9m as the company continued to invest in new acquisitions.

“Amanat’s strong financial performance in the first half of the year is testament to our investment strategy, which has proven to be effective very early on,” said Hamad Al Shamsi, chairman of Amanat.

“In addition, Amanat is well placed to deliver solid progress as we continue to create value in our existing portfolio and further diversify our asset base with the acquisition of high-quality education and healthcare assets in the GCC and other markets.”

Amanat, which has traditionally invested in the top two regional economies of Saudi Arabia and the UAE, said in April it planned to expand its footprint beyond the Arabian Gulf region.

So far, the company has invested Dh1.8 billion of its Dh2.5bn capital, of which Dh1.1bn was paid out this year alone, after completing its Dh369m acquisition of Middlesex University in Dubai, Amanat said last week.

The Middlesex deal, the company’s third investment this year, was struck with former owners including the embattled private equity firm Abraaj Group.

With the latest investment, the Amanat portfolio has expanded to include three education assets in the UAE, two healthcare assets in Saudi Arabia and a real estate investment.

In March, Amanat moved Dh700m of its cash into Sharia-compliant deposits in UAE banks from conventional accounts to transform itself into a company compliant with Islamic finance.