ADQ Plans to Establish One of the World's Largest Pharmaceutical Companies in Abu Dhabi

Abu Dhabi's sovereign wealth fund, ADQ, is set to create one of the globe's largest pharmaceutical entities in the capital city, as it continues its trend of achieving a 20% annual increase in profits across its portfolio of entities.

The Chief Investment Officer of ADQ, Dr. Jaap Kalkman, revealed that following the recent acquisition of four pharmaceutical companies, the fund's future strategy involves additional pharmaceutical purchases.

These acquired companies will subsequently be merged and headquartered in Abu Dhabi, aiming to establish one of the largest pharmaceutical conglomerates globally.

Furthermore, Kalkman announced plans to list the new pharmaceutical giant on the Abu Dhabi Securities Exchange (ADX).

In 2021, ADQ made significant acquisitions, including Pharmax, a leading pharmaceutical manufacturer in the UAE, and Amoun, a top pharmaceutical company in Egypt.

Speaking at the Abu Dhabi Economic Forum during the inaugural day of Abu Dhabi Finance Week, Kalkman highlighted ADQ's substantial investments in digital transformation and innovation.

He underscored that the fund's 25 companies consistently achieve a remarkable 20% annual profit growth, with ambitious plans for global expansion.

Looking ahead, Kalkman suggested that ADQ may consider additional mergers or acquisitions in industries where it currently has no presence.

Emphasizing the board's expectation of sustained profit improvement, he outlined the necessity for global growth beyond the UAE, extending to regions with established relations and beyond.

ADQ's diverse portfolio includes major entities such as Etihad Airways, Abu Dhabi Airports, and Wizz Air Abu Dhabi, along with the AD Ports Group, PureHealth, and the Agthia Group.

Hamad AlHammidi, CEO of Energy and Utilities, and Sustainable Manufacturing at ADQ, highlighted the company's strategic focus on transforming state-owned enterprises into more sustainable ventures.

AlHammidi expressed the intent to eventually take these assets and companies public, emphasizing the benefits of increased resilience and transparency achieved through stock market listings.

He said, "Because we strongly believe taking companies into the stock market increases its resilience and transparency, allowing investors to look into the companies, scrutinising them and making them grow."

Imogen Lillywhite / Zawya