ABU DHABI: ADNH Catering PLC, a prominent player in the United Arab Emirates, has announced its intention to increase its stake in the Saudi joint venture, Compass Arabia, to 50 per cent. Currently holding a 30 per cent interest in the venture, ADNH Catering’s decision reflects its strategic goal of enhancing its presence in the burgeoning Saudi market.
The move comes on the heels of the company’s initial public offering (IPO) on the Abu Dhabi Securities Exchange earlier this year, marking a pivotal moment in its growth trajectory.
Established in 2012, Compass Arabia has served as a critical platform for ADNH Catering to penetrate the Saudi market. The completion of this transaction, anticipated in the first quarter of 2025, will grant ADNH Catering a controlling stake in the joint venture.
The remaining 50 per cent equity will continue to be held by Al-Rushaid Petroleum Investment Company, thereby ensuring a balanced partnership that leverages both companies’ strengths.
Clive Cowley, the CEO of ADNH Catering Group, articulated the company’s vision for expansion, stating, “We are seeking to build out from our market-leading position in the UAE to expand ADNH Catering Group’s operations across various business segments and provinces in the kingdom, including Riyadh.”
The statement underscores the company’s commitment to diversifying its operations and capitalising on the growth potential within Saudi Arabia, particularly in major urban centres.
As part of this strategic shift, the joint venture is expected to undergo rebranding once Compass fully exits, signaling a new chapter for the partnership. This rebranding will not only reflect ADNH Catering’s enhanced role but also align the venture more closely with its overarching corporate identity and objectives.
Furthermore, this move follows the parent company, Abu Dhabi National Hotels, acquiring Compass Group International’s interests in their UAE joint venture, ADNH Compass.
The acquisition, involving one of the UK’s top 30 FTSE-listed businesses, highlights ADNH Catering’s aggressive strategy to solidify its market position and expand its operational footprint.
