Al Habtoor Group Expands with Acquisition of European Property
Dubai-based conglomerate Al Habtoor Group is planning to acquire commercial property in Europe this year as part of its expansion strategy.
Al Habtoor Group Expands into European Property Market, Expects Strong Revenue Growth
The company, which operates in sectors including property, hospitality, automotive, insurance, education, and publishing, is eyeing countries near Hungary for potential acquisitions. Al Habtoor Group already owns assets in Hungary, Austria, the UK, Lebanon, and the US. The company aims to fund the new deals using its own resources and expects revenue growth of 15% to 20% across its businesses in 2023. It also plans to unveil a new real estate project in Dubai by the end of the year.
Europe Expansion and Portfolio Growth
Al Habtoor Group's Vice Chairman and CEO, Mohammed Al Habtoor, revealed the company's ambitions to double or triple its portfolio in the next five years. The conglomerate intends to expand not only in Europe but also in the UAE. Al Habtoor Group is actively exploring opportunities in different sectors and countries, with a strong appetite and capability for expansion. The company aims to capitalize on the demand in Dubai's real estate market, which has shown significant growth in transaction values and volumes in recent months.
Dubai's Property Sector and Global Interest
Dubai's property sector has been buoyed by various government initiatives, including residency permits for retirees and remote workers, the expansion of the 10-year golden visa program, and the positive economic impact of Expo 2020 Dubai. According to global property consultancy Knight Frank, high-net-worth individuals are planning to spend $2.5 billion on Dubai property in 2023. Al Habtoor highlighted Dubai's attractiveness due to its comparatively lower property prices, high quality of life, and a business-friendly environment that fosters growth. He emphasized that Dubai is a safe destination with clear government rules and a trustworthy business environment.
Revenue Growth and IPO Plans
Al Habtoor Group expects strong revenue growth in 2023, driven primarily by its hospitality and motoring divisions, which contribute 65% of its revenue. Real estate, education, and insurance are also significant revenue generators for the company. Additionally, Al Habtoor Group is considering an initial public offering (IPO) and may have an announcement regarding its IPO plans by the summer of next year. The final decision will be made by the chairman of the company.