Multiply Group, an Abu Dhabi-based investment holding company, reported AED18.56 billion in net profit for 2022, driven by the strong performance of the Group’s investments and growth in its operating portfolio.
Despite several global headwinds, most of its subsidiaries showed growth in operating profits in 2022, highlighting the strength of these businesses and the resilience of their industries. For example, Emirates Driving Company (EDC) grew by 51 percent; Viola Communications grew by 203 percent, supported by Post-COVID-19 spending on events and out-of-home media and the growth of the economy; and Omorfia Group grew by 47 percent.
The Group deployed more than AED12 billion in 2022, making strategic investments in dynamic and healthy businesses across high-growth thematic industries such as energy, including in Abu Dhabi National Energy Company (TAQA), Dubai Electricity and Water Authority (DEWA) and International Energy Holding (IEH). At the same time, these businesses offer predictable, recurring income that will deliver a sustained increase in shareholder value.
In addition, Multiply Group was added to several indices, including MSCI Emerging Markets Index, which enhances its position on the global benchmark investing map and is expected to attract substantial investment inflows. The Group has also been attracting and recruiting talent with the capital market and investment banking expertise. Most recently, it was recognised as a Great Place to Work by the global authority on corporate culture.
Looking ahead, with a liquidity position of AED34.97 billion in liquid assets and AED1.03 billion in cash and bank balances, moderate debt, a global network of deal origination partners, and while building an in-house team of vertical experts, Multiply Group will continue to capitalise on market trends and remains in a strong position to carry on with its strategy of investing in transformative, cash-generating businesses that are exploring new revenue models in transitioning industries.
In January, the Group invested AED92 million in Rihanna’s Savage X Fenty, a direct-to-consumer e-commerce fashion company. The investment was part of a funding round alongside other international investors that included Neuberger Berman and LionTree.
In April, it invested AED367 million as a cornerstone investor in the initial public offering of Dubai Electricity and Water Authority (DEWA), one of the region’s leading fully integrated utility companies. This was followed by an investment in May of AED183.75 million in the initial public offering of Borouge plc, again as a cornerstone investor.
In September, the Group acquired a 7.3 percent stake for AED10 billion in Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utility companies in Europe, Middle East and Africa (EMEA). In the third quarter, Multiply Group also acquired 80 percent of International Energy Holding (IEH). IEH had recently acquired a 50 percent stake in Kalyon Enerji Yatrimlari A.Ş., a market-leading clean and renewable energy company based in Turkey. Kalyon Enerji’s assets include a PV (photovoltaic) power plant project with an installed capacity of 1.3 gigawatt (GW) in the Konya’s Karapinar region.
Emirates Driving Company (EDC), which registered 51 percent growth in profitability last year, completed 90 percent of its third main branch located in Madinat Zayed. The company also held the Mobility Education Summit in 2022, the first of its kind in the region, in collaboration with Abu Dhabi Police, the Integrated Transport Centre, and the European Driving Schools Association. The three-day summit focused on accelerating the development of sophisticated and sustainable training techniques and promoting a shift toward transportation education based on sustainable mobility, technology, and security.
Pal Cooling Holding, one of the top players in the UAE’s district cooling industry, successfully completed and commissioned a second district cooling plant for the Shams Development, with a full design capacity of 57,000 refrigeration tonne (RT). It also expanded its ADNEC plant installed capacity to 20,000 RT reaching a total installed capacity of 150,500 RT throughout the company’s six district cooling plants.
Omorfia Group, which comprises personal care and beauty companies, continued to expand and modernise its network as well as branch out into higher-value services such as physiotherapy with the opening of five new locations in 2022. This included the expansion of its Tips and Toes brand with new branches in Park Point, Dubai Hills Estate; Silicon Central, Dubai; and Al Dannah Mall, Ruwais; as well as a new branch of Jazz Lounge Spa in Mirdif Avenue Mall, Dubai.
Viola Communications, a fully-integrated marketing and communications solutions provider completed the first phase of the digital transformation of 16 bridges along Abu Dhabi’s high-visibility roads and major arterial roads in August. The company also won the Best Arts and Culture Campaign Award from the Middle East Public Relations Association (MEPRA) for the communications and event management services it provided for the Sheikh Zayed Festival, a leading international entertainment and cultural event in Abu Dhabi.
Multiply Group also launched its Corporate Wellness Programme, run by its subsidiary HealthierU, as part of its ESG commitment. The programme promotes work-life balance and supports the mental and physical wellbeing of the Group’s 3,000+ employees. Employees identified as high-risk have been enrolled in a comprehensive six-month programme to guide them in overall wellness and educate them about the benefits of creating healthy habits.
Inclusion In New Indices
The year saw Multiply Group included in a number of new indices. This included the MSCI Emerging Markets Index in November, enhancing its position on the global benchmark investing map and expected to attract substantial investment inflows. The Group was also ranked 10th globally and 2nd regionally in the 2,803-member Bloomberg World Index.
Multiply Group was also added to the FADX 15 index in March and the FTSE Global Equity Index Series (FTSE GEIS) Mid Cap Index in June.
In Q3, the Group was included in the S&P UAE BMI Liquid 20/35 Capped Index and S&P UAE Shariah Liquid 35/20 Capped Index. The indices measure the performance of the S&P UAE BMI and the most liquid and Shariah-compliant stocks in the UAE, respectively. The Group’s addition to these indices, which are provided by S&P Dow Jones Indices, also resulted in its inclusion in Chimera S&P UAE UCITS ETF and Chimera S&P UAE SHARIAH ETF.