ALEC company owns several subsidiaries in sectors such as construction, mechanical and electrical engineering, technical fit-outs, equipment rental, utilities, energy, and more. Since being acquired by the Investment Corporation of Dubai (ICD) in 2017, ALEC has focused on expansion, improving efficiency, and diversifying its revenue streams.
- In 2024, ALEC’s revenue reached approximately AED 8.1 billion, compared to AED 6.3 billion in 2023, reflecting a revenue growth of around 26–30%.
- Net profit for 2024 stood at AED 363 million, up from AED 238 million in 2023.
- Operating profit through EBITDA also improved, reaching AED 646 million in 2024, with an EBITDA margin of around 8.0%, compared to a lower margin in previous years.
- In the first half of 2025, ALEC reported revenue of AED 5.362 billion and net profit of approximately AED 239 million.
- The backlog, or the total value of signed but unexecuted projects, remains substantial, amounting to AED 35.4 billion as of the end of June 2025.
Profits of ALEC
- The increase in net profit from 2023 to 2024 is significant — from AED 238 million to AED 363 million.
- Net profit in the first half of 2025 alone reached AED 239 million.
- Net profit margin stands at around 4.5% of revenue for both 2024 and H1 2025.
Investing in ALEC Holdings Shares
- ALEC is currently offering 20% of its capital for public subscription in an Initial Public Offering (IPO) on the Dubai Financial Market (DFM). The subscription period runs from 23 to 30 September 2025.
- The parent company, ICD, will retain 80% ownership post-IPO if the full offer is sold.
- The IPO aims to allow investors to participate in ALEC's growth, increase transparency, and provide flexible financial resources to support future expansion. Being publicly listed also enhances market valuation.
- As of now, there are no actual trading prices for ALEC shares since the public listing has not officially begun. However, it is expected that trading will commence around 15 October 2025 under the ticker symbol “ALEC.”
- IPO documentation indicates that ALEC has strong growth margins, a large project backlog, and a solid financial position (net cash positive), all of which are promising signs for post-listing share performance.
Dividend Distributions
- ALEC has announced plans to pay a cash dividend of AED 200 million in April 2026, followed by AED 500 million for the 2026 financial year, to be distributed in October 2026 and April 2027.
- Thereafter, the company plans to implement a semi-annual dividend policy (April & October) with a payout ratio of no less than 50% of net profit, subject to board approval and the availability of distributable reserves.
1- Project Backlog Size
The volume of signed but pending projects provides a clear outlook on future revenue. A larger backlog enhances confidence in sustainable growth.
2- Geographic Expansion & Saudi Presence
ALEC’s entry into major Saudi projects and the launch of new operational facilities diversify risk and unlock additional opportunities.
3- Cost Management & Profit Margins
Effective management of operational costs, materials, labor, and financing directly impacts earnings. Improvements in EBITDA margins are a key performance indicator.
4- Liquidity, Financing, and Debt
A net cash position or low debt levels make the company less vulnerable to liquidity issues or rising interest costs. ALEC reported a net cash position of approximately AED 334 million as of June 2025.
5- Dividend Policy & Transparency
A clear, attractive dividend policy and a commitment to reasonable and consistent payouts appeal to income-focused investors.
6- Economic and Regulatory Conditions in UAE & Saudi Arabia
Market factors such as construction costs, project delays, raw material prices, labor availability, government regulations, land fees, permits, visas, supply chain issues, and energy/logistics costs all influence performance.
7- Competitiveness & Technical Expertise
ALEC’s ability to secure and deliver large, technically complex projects on time and to the required quality is critical in the construction sector.
Expansions and Investment in ALEC Holdings
- ALEC has significantly expanded its operations in Saudi Arabia, securing major projects such as the Qiddiya Speedpark.
- It continues to develop its support services sector, including AJI Rentals, fit-out services, modular construction, data centers, MEP (Mechanical, Electrical, and Plumbing) services, and other specialized subsidiaries.
- The company is investing in operational efficiency, adopting advanced technologies, promoting sustainable practices, standardization, innovation, and even automation. ALEC aims to have 5% of its construction activities automated by 2030.
- New facilities have been launched in the UAE, including Ras Al Khaimah, to support infrastructure and increase production capabilities in line with growth.
ALEC Holdings is well-positioned for a strong entry into public markets. It demonstrates healthy growth in both revenue and profits, maintains a robust project pipeline ensuring future income, and has a transparent, investor-friendly dividend policy. While it is not yet publicly traded, the available data suggest that ALEC meets many of the key criteria that serious investors seek: sustainable profitability, market diversification, a healthy financial structure, and a strong commitment to governance and transparency.
