Q2 2026 Al Waha Capital PJSC Earnings Call Transcript
Key Points
- Net profit surged 62% year-on-year to AED 338 million in H1 2026, driven by strong performance across all three business pillars.
- Waha Investments attracted over $300 million in third-party capital, boosting third-party AUM to $2.3 billion and total AUM to over $3 billion.
- Flagship funds delivered robust long-term returns: Emerging Markets Credit Fund at 10.6%, MENA Equity Fund at 14.4%, and Islamic Fund at 6% annualized since inception.
- Waha Private Investments generated AED 114 million net income, supported by active portfolio management and a successful capital recycling strategy.
- Wahaland maintained full occupancy across completed assets and allocated AED 500 million to add 225,000 square meters of leasable industrial and logistics space, enhancing future recurring income.
- Balance sheet remains strong with approximately AED 300 million in cash and $250 million in undrawn committed facilities, providing significant financial flexibility.
- The company continues executing its share buyback program, reflecting confidence in intrinsic value and disciplined capital allocation.
- Operating expense increases were solely due to performance-related bonuses, with regular operating costs in line with budget and prior year.
- The company is highly tax-efficient, with no tax expense recorded for H1 2026 due to ADGM fund structures and the development phase of Wahaland.
- Income from financial investments is highly volatile across periods, making it difficult to predict a stable run rate for this segment.
- The company's high level of proprietary capital (about 40% of the hedge fund book) exposes it to market fluctuations and potential losses.
- Wahaland is still in a development phase, with limited recurring income currently, and a small tax liability is expected as income grows.
- Operating expenses increased significantly on a quarter-over-quarter basis due to performance-related bonuses, which could pressure margins in periods of lower performance.
- The company's reliance on hedge fund performance for a significant portion of income means returns are not guaranteed and could be impacted by market conditions.
- No explicit guidance was provided for future financial investment income, leaving investors uncertain about medium-term earnings sustainability.
- The effective tax rate is expected to rise as Wahaland generates more income, potentially reducing future net profits.
Good morning.
Thank you for attending today's Al Waha Capital Earnings Call for H1 2026 Financial Results. My name is Sari and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, press star 1 on your telephone keypad. To submit a text question, please navigate to the registration page for the call and use the Q&A button on your browser in the top right corner.
I would now like to pass the conference over to our host, Janani Vamadeva. Please go ahead.
Thank you, Nora. Good morning, everyone, and thank you for joining us today.
This is Janani Vamadeva, and on behalf of Arqaam Capital, I'm pleased to welcome you to Al Waha Capital's H1 2026 earnings conference call.
I have with me here today from Al Waha Capital Management, Mr. Mohammad Hussein Al-Nawais, the Managing Director, and Mr. James Siniker, the Chief Financial Officer.
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