Amanat Holding Q3 loss due to recent acquisitions: CFO

Dubai-listed Amanat Holdings’ financial position is very strong and the reported loss for Q3 is non-recurring due to the recent acquisitions, CFO Dawod Al-Ghoul told Argaam.

The quarterly results were temporarily impacted by including the full consolidation of the recent majority stakes acquired in the Royal Hospital for Women in Bahrain, as well as Middlesex University Dubai, he said.

According to data compiled by Argaam, the firm’s net profit slumped 39 percent year-on-year (YoY) for the first nine months of 2018. It incurred a net loss of SAR 3.6 for Q3. 

The positive financial impact of the two acquisitions is expected to show in Q4 results, he added.

The firm announced in August the full acquisition of Middlesex University Dubai and buying a 69.36 percent stake in Royal Hospital.

Most of the company’s investments occurred this year, Al-Ghoul said, adding that there will be no more reported losses this year or the coming periods.

When asked if Amanat Holding plans to invest in other sectors, he said that the health and education investment firm doesn’t have the intention to look elsewhere for the time being.

The firm foresees great growth in the health and education sectors for both the medium and long term due to high demand especially in the UAE and Saudi Arabia, he said, adding that demand will remain strong in the Kingdom despite foreigners’ exit.

As for Amanat Holding’s deposits, the firm plans to convert its deposits to Islamic deposits instead of regular ones, while reducing revenues from deposits by redirecting capital and liquidity toward investments, Al-Ghoul added.