22-05-2025
Abu Dhabi's Ghitha aims to double revenue to $2.7bn in three years through acquisitions
Abu Dhabi-listed Ghitha Holding aims to double its revenue to Dh10 billion ($2.72 billion) in the next three years by expanding its asset base through mergers and acquisitions and entering new export markets including the US, its chief executive said. The trading and food distribution subsidiary of Abu Dhabi's International Holding Company has a strong M&A pipeline and is interested in buying assets in the UAE, in the Middle East and North Africa region and in markets as far away as Indonesia, Falal Ameen, group chief executive of Ghitha Holding, told The National in Abu Dhabi. 'The last year we had revenue of Dh5 billion … we need to double it within three years,' Mr Ameen said on the sidelines of the Make it in the Emirates event. 'We need to find new M&A [opportunities], improve efficiencies, and find new export markets, not only in the UAE but outside as well.' The company, which rebranded from Zee Stores to Ghitha Holding in January 2022, plans to fund acquisitions of assets through a combination of bank lending and funds from its own coffers. Ghitha is open to acquiring assets that 'add value' to the company's existing business lines of food production, distribution and farming. 'M&A is one of the quickest and fastest, and it is not only the fastest way [to grow], but once you merge, you can reduce a lot of cost, you can synchronise the logistics system … [and] can use expertise, our software, to improve their production,' Mr Ameen said. Ghitha is a frontline company in the UAE's National Food Security Strategy 2051. The programme, which aims to make the country the world's best in the Global Food Security Index by 2051, seeks to broaden local production, boost regional interconnectivity and broaden its food supply chains. The UAE is also encouraging the expansion of food-related industries as part of the national strategy. Ghitha has already been on an acquisition spree in the past few quarters, and Mr Ameen said it has full backing of the board and its majority shareholder IHC – the biggest listed company in the UAE – to pursue the aggressive growth strategy. In March, its subsidiary Al Ain Farms signed a deal to acquire UAE-based Al Jazira Poultry Farm for Dh285 million, after buying assets of Arabian Farms Investments for Dh240 million in July, which included its operations in the UAE and Saudi Arabia. This week, Al Ain Farms as well as UAE food companies Marmum Dairy, Al Ajban Chicken, Al Jazira Poultry Farm's Golden Eggs, and Saha Arabian Farms were also consolidated into the Al Ain Farms Group to support the country's food production capabilities. The group supplies more than one-third of the nation's total consumption in dairy, poultry and beverages and aims to be the region's leading provider in those segments. In October, Ghitha also said it is acquiring a 70 per cent stake in Fujairah's International Food Industries, through its subsidiary Zee Stores International, for Dh41 million. In December, however, it abandoned plans to take a 44 per cent stake in Turkish cargo carrier MNG Airlines, amicably ending the $211 million deal that was first announced in February last year. 'We have so many deals in the pipeline … looking, not on the money, but looking how we can collaborate, how we can merge, what is adding value for us, connect with us,' Mr Ameen said. The company owns a 9,000-hectare farm in Egypt that produces everything from mangoes to tomatoes, citrus and dates. Next on the radar is Indonesia where the company plans to acquire farms to tap into the country's palm oil processing centres. However, a final decision on that investment has yet to be made, he said. Ghitha also produces seafood products through its Asmak production site and operates Abu Dhabi Vegetable Oil Company, the only edible oil refinery in Abu Dhabi. It exports to markets in the Gulf and has done a 'trial run' exporting seafood to the US, Mr Ameen said. The US seafood market presents a huge opportunity since most of its imports are from China, and given the trade tiff between the two nations, countries like the UAE that are only subject to a 10 per cent levy by Washington could step in. Further clarity on the tariff plans from the US will help the company evaluate potential exports to markets in Europe, he said.
