How We Invest
The IDO invests in value-creating opportunities. These are either bolt-on M&A transactions to existing companies in its portfolio, or totally new verticals that will unlock the potential of certain sectors, which are deemed to be of strategic or developmental importance for Ras Al Khaimah.
We are therefore a commercially-minded organization while always striving to make a positive impact on the local community. Accordingly, our investment criteria are generally balanced between achieving financial returns and contributing to local development.
Financial Criteria
- Payback
- ROIC/ROE
- NPV/IRR
Development Criteria
- GDP
- Employment
- Strategic priorities
The overall direction for investments and divestments is set by the IDO Investment Committee through a yearly portfolio strategy exercise.
We are comfortable with a long-term hold and patient capital accumulation approach, provided our long-term investment criteria and returns are met. However, from time to time, we may also divest partly or fully, in line with our portfolio strategy objectives.
From a transaction execution standpoint, each specific organic and inorganic investment or divestment follows a well-documented governance process. Every milestone of a transaction is diligently scrutinized by the IDO Investment Committee.