ALEC Holdings IPO: Should You Invest in Dubai Latest Market Giant?
Dubai stock market has been buzzing with a series of high-profile listings over the past three years—from Salik and Parkin to Dubai Taxi and DEWA. These IPOs have drawn record subscriptions and delivered strong post-listing performance, reinforcing Dubai’s reputation as one of the most vibrant IPO hubs globally. Now, a new heavyweight is stepping into the spotlight: ALEC Holdings, one of the UAE’s most respected construction companies.
Subscriptions for the ALEC IPO on the Dubai Financial Market (DFM) opened on September 23, 2025, raising a critical question for investors: is this the right time to buy in?
ALEC’s Legacy: 26 Years of Engineering Excellence
Founded in Dubai, ALEC has a 26-year track record of delivering some of the region’s most complex projects. Its portfolio includes Expo 2020 pavilions, luxury hotels, airport terminals, and mega towers like One Za’abeel. The group operates across nine integrated businesses, spanning construction, modular building, energy, fit-outs, equipment rentals, and data centres.
Backing from the Investment Corporation of Dubai (ICD)—the government’s sovereign wealth fund—adds another layer of credibility. ICD will retain majority ownership post-IPO, reassuring investors of ALEC’s strong institutional support.
A Dh35.4 Billion Project Backlog
One of ALEC’s greatest strengths is its Dh35.4 billion backlog of projects, providing revenue visibility for years ahead. A remarkable 87% of these projects are based in the UAE, including the Wynn Al Marjan resort and Stargate Data Centre. The remaining 13% is in Saudi Arabia, tied to Vision 2030 mega-developments such as the Qiddiya Waterpark.
This diversified pipeline ensures ALEC remains a central player in both the UAE’s and Saudi Arabia’s construction booms.
Consistent Profitability and Strong Growth
ALEC has been profitable for 18 consecutive years. In 2024, it reported Dh8.1 billion in revenues with EBITDA margins at 8% and net income margins at 4%. In the first half of 2025 alone, revenue climbed to Dh5.36 billion, with improved profitability.
The workforce has also expanded by 46% in the last two years, reaching 40,000 employees. According to CFO John Deeb, this growth is driven by disciplined project selection and financial prudence.
Attractive Dividend Policy
Dividends are a big draw for retail investors, and ALEC has made bold commitments:
- 2025: Dh200 million payout
- 2026: Dh500 million (two installments)
- From 2027 onward: At least 50% of net profits distributed annually
This ensures investors benefit not only from potential share price appreciation but also steady income streams.
Data Centres and Saudi Expansion: The Growth Story
ALEC is strategically diversifying into data centre construction, a sector forecast to exceed $300 billion in global value. Its Dh5.3 billion Stargate Data Centre in Abu Dhabi exemplifies this shift toward higher-margin opportunities.
Additionally, ALEC is expanding aggressively in Saudi Arabia, where the construction market is valued at Dh4.7 trillion compared to the UAE’s Dh2.8 trillion. CEO Barry Lewis describes Saudi Arabia as a “far bigger opportunity”, underscoring ALEC’s regional growth ambitions.
IPO Details at a Glance
- Shares Offered: 1 billion (20% of company)
- Price Range: Dh1.35–Dh1.40 per share
- Retail Tranche: 5% with guaranteed allocation of 2,000 shares
- Minimum Subscription: Dh5,000
- Subscription Period: September 23–30, 2025
- Expected Listing: October 15, 2025, on DFM
Risks to Consider
As with any investment, there are risks:
- Secondary Sale: IPO proceeds go to ICD, not ALEC itself.
- Sector Cyclicality: Construction is vulnerable to project delays and material cost fluctuations.
- Geographic Reliance: Heavy concentration in the UAE and Saudi Arabia.
- Oversubscription Risk: High investor demand could limit retail allocations.
Should You Invest?
ALEC’s IPO builds on the success of other government-backed listings in Dubai. With strong profitability, a Dh35 billion project backlog, a generous dividend policy, and growth opportunities in data centres and Saudi Arabia, the IPO is expected to attract significant attention.
For investors seeking exposure to the UAE’s booming infrastructure and real estate ecosystem, ALEC offers a compelling option. However, prospective buyers should review the prospectus carefully, weigh risks, and assess whether construction-sector exposure aligns with their portfolio strategy.
Bottom line: ALEC’s IPO is not just another listing—it’s a chance to invest in one of Dubai’s flagship construction champions, backed by the Investment Corporation of Dubai. If recent IPO trends are any guide, expect strong demand and potential upside.
