#UAE Royal Sheikh Tahnoon's IHC Drops, Dragging Down #AbuDhabi Index - Bloomberg

UAE Royal Sheikh Tahnoon's IHC Drops, Dragging Down Abu Dhabi Index - Bloomberg

A group of companies controlled by an influential member of Abu Dhabi’s royal family have shed $30 billion in market value this year, contributing to a drop in the emirate’s benchmark index that’s lagged regional peers.

Abu Dhabi’s FTSE ADX General Index is down about 6% year-to-date, significantly under-performing benchmarks in Dubai and Riyadh, which have both risen more than 10%. That’s due in part to a near 4% drop in International Holding Co., the $236 billion conglomerate chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan.

IHC’s shares have rallied in recent years, helping the Abu Dhabi bourse post gains of close to 100% since the start of 2021. IHC’s units, Alpha Dhabi Holding Co. and Multiply Group, have also dropped more than 20% in 2023 after two years of significant gains.

“The current performance of the Abu Dhabi Stock Exchange is partly associated with profit booking on companies that have seen significant gains, including IHC and newly-listed stocks,” said Junaid Ansari, head of investment strategy and research at Kamco Invest.

First Abu Dhabi Bank, the country’s largest lender that’s chaired by Sheikh Tahnoon, is also down by a fifth this year. IHC, FAB, Alpha Dhabi and Multiply together account for just under 60% of the emirate’s benchmark index based on the most recent weightings.