Al Khaleej Investment

1. Company Overview & Earnings Context

Al Khaleej Investment PSC (KICO) is an Abu Dhabi Securities Exchange-listed investment holding company with operations across real estate, private fund investments, commercial enterprises and energy-related businesses. During H1 2026, the Group continued executing its strategy of diversifying income sources while expanding into the battery energy storage systems (BESS) sector through its Finnish subsidiary, Gulf Nova Energy Solutions.

For H1 2026, the Group reported a net loss of AED 4.6 million as lower rental income, fair value losses on investments and higher operating expenses outweighed the positive contribution from its joint venture. Management also highlighted progress on strategic energy investments and confirmed that the financial impact of a favourable Reem Island legal judgment will be recognised in Q3 2026.

2. Financial Performance Snapshot

• Revenue: AED 1.9 Million

• Gross Profit: AED 1.5 Million

• Share of Profit from Joint Venture: AED 6.6 Million

• Fair Value Loss on Investments (FVTPL): AED 2.2 Million

• Loss Before Tax: AED 5.4 Million

• Income Tax Benefit: AED 0.7 Million

• Net Loss: AED 4.6 Million

• Basic Loss per Share: AED 0.0441

Compared with H1 2025:

• Revenue declined from AED 6.1 million to AED 1.9 million.

• Gross profit decreased from AED 4.3 million to AED 1.5 million.

• Fair value movement on investments shifted from a gain of AED 0.8 million to a loss of AED 2.2 million.

• Net loss widened from AED 3.1 million to AED 4.6 million.

• Basic loss per share increased from AED 0.0292 to AED 0.0441.

3. Operational Highlights & Key Metrics

• Total Assets: AED 313.8 Million

• Total Equity: AED 281.0 Million

• Total Liabilities: AED 32.8 Million

• Cash & Cash Equivalents: AED 7.5 Million

• Short-term Deposits: AED 133.8 Million

• Investment Property: AED 34.2 Million

• Investment in Joint Venture: AED 27.4 Million

• Net Cash Used in Operating Activities: AED 4.8 Million

• Net Cash Generated from Investing Activities: AED 16.1 Million

• Net Cash Used in Financing Activities: AED 7.4 Million.

4. Key Performance Drivers

KICO's H1 2026 results were impacted by lower property rental income, fair value losses on listed investments and higher administrative expenses. These factors were partially offset by a AED 6.6 million profit contribution from its joint venture and higher finance income. During the period, the Group also advanced its diversification strategy by entering the battery energy storage sector in Finland through Gulf Nova Energy Solutions, while continuing to strengthen its investment portfolio.

5. Outlook & Forward Guidance

Management expects its first battery energy storage project in Finland to commence revenue generation by the end of 2026 and sees significant long-term opportunities in the sector. The Group also intends to resume its previously approved AED 400 million rights issue when market conditions improve. Additionally, the financial impact of the favourable Reem Island legal judgment is expected to be recognised during the third quarter of 2026.

6. Investor Takeaway

Al Khaleej Investment reported a weaker H1 2026 financial performance, reflecting lower operating income and investment valuation losses. However, the Group continues to execute its long-term diversification strategy through investments in renewable energy and real estate, while the expected recognition of the Reem Island legal settlement and the launch of its first BESS project could provide catalysts for future performance.