The Roha Group is a leading industrial conglomerate based in the United Arab Emirates. It was founded in 1968 by Khalaf Ahmad Al Habtoor and has grown over the decades into a diversified business operating across multiple sectors. Determining the ownership structure of the Roha Group requires analysis of the group’s history, leadership, and operations.
History of the Roha Group
The Roha Group was founded in 1968 by Khalaf Ahmad Al Habtoor as a small engineering firm based in Dubai. Al Habtoor was born in 1940 in Dubai and got his start working for local construction companies after receiving a high school education. In 1968, at age 28, Al Habtoor started his own company that would grow into the Roha Group. He initially focused on construction and cement production to support Dubai’s rapid infrastructure development in the 1970s and 1980s. The company expanded into many other industries, including automotive, education, real estate, hospitality, finance, and publishing. It formed joint ventures with international partners like Mitsubishi, St. Regis, and Westin to grow its portfolio. Today, the diversified Roha Group operates globally across 30 countries.
Leadership of the Roha Group
Khalaf Ahmad Al Habtoor remains the Chairman of the Roha Group. Now in his 80s, Al Habtoor has led the group for over 50 years since founding it in 1968. The headquarters remain in Dubai. His key leadership roles include:
- Chairman, Al Habtoor Group LLC
- Chairman, Al Habtoor Motors LLC
- Chairman, Habtoor Engineering Enterprises CO LLC
- Chairman, Al Habtoor Real Estate LLC
In recent years, Al Habtoor has brought his three sons into leadership roles to continue growing the family-owned conglomerate. His sons hold key positions such as:
- Khalaf Al Habtoor: Vice-Chairman, Al Habtoor Group LLC
- Sultan Al Habtoor: CEO, Al Habtoor Real Estate LLC
- Mohamed Al Habtoor: CEO, Al Habtoor Capital LLC
Khalaf Al Habtoor remains the controlling owner of the Roha Group through his personal ownership stake. As Chairman, he oversees the entire enterprise and strategic direction. His three sons manage day-to-day operations of key businesses under Al Habtoor’s guidance. All are groomed to inherit a stake in the Roha Group in the future.
Operations and Subsidiaries
The Roha Group has extensive operations covering many industries. The key businesses and subsidiaries include:
- Construction – Habtoor Engineering Enterprises
- Automotive – Al Habtoor Motors (dealerships for brands like Mitsubishi and Jaguar Land Rover)
- Hospitality – Al Habtoor Hotels LLC
- Real Estate – Al Habtoor Real Estate LLC
- Education – Al Habtoor American University, Beirut;
- Finance – Al Habtoor Capital LLC
- Publishing – Al Khaleej Publishing and Printing LLC (publishes daily Al Khaleej newspaper)
This diversified group of businesses in multiple industries has helped the Roha Group expand to its present size. The group employs over 40,000 people globally. Revenues were estimated at $1.2 billion as of 2017. The conglomerate continues to be owned by the Al Habtoor family, predominately Chairman Khalaf Ahmad Al Habtoor. His three sons hold leadership roles and ownership stakes in key subsidiaries as Al Habtoor prepares for succession planning.
Ownership Structure
As a private family conglomerate, the exact ownership details of the Roha Group are not publicly disclosed. However, available information suggests the following ownership structure:
- Khalaf Ahmad Al Habtoor: Controls the majority ownership share (~70%) through personal stakes in the Roha Group parent company and subsidiaries. He maintains operational control as Chairman.
- Al Habtoor’s three sons (Khalaf, Sultan, and Mohamed): Each holds minority stakes (~10% each) in the Roha Group through subsidiaries like Al Habtoor Motors and Al Habtoor Real Estate where they are executives.
- Other relatives: Small ownership shares are likely held by other Al Habtoor family members.
- Joint venture partners: Strategic partners like Mitsubishi Motors and IHG Hotels hold small stakes in certain Roha Group joint ventures.
In summary, Khalaf Ahmad Al Habtoor holds the controlling ownership interest in the Roha Group. He oversees the conglomerate’s entire strategy as Chairman. His three sons hold minority stakes in key businesses, and they manage day-to-day operations. Together, the Al Habtoor family owns and controls the diversified Roha Group.
Corporate Governance
As a privately held family business, Roha Group’s corporate governance structure gives the Al Habtoor family control while incorporating some independent oversight. This includes:
- Khalaf Al Habtoor as Chairman provides central strategic direction.
- His three sons manage key businesses as executives and subsidiary board members.
- Independent directors provide oversight on boards of larger subsidiaries.
- Advisory councils and consultants advise on strategy and operations.
- Governance committees provide guidance on issues like compliance and risk management.
This approach allows the Al Habtoor family to maintain control through majority ownership while accessing outside expertise on advisory boards and committees. There is less outside shareholder accountability compared to a public company. However, subsidiary joint ventures and partnerships provide some governance from strategic investors.
CSR and Philanthropy
Under Al Habtoor’s leadership, the Roha Group engages in extensive corporate social responsibility (CSR) activities. This includes:
- Philanthropic donations to cultural and charitable causes. Al Habtoor personally donated AED 200 million in 2013 for refugees of the Syrian civil war.
- Established the Al Habtoor Foundation in the UAE to promote cultural and community programs.
- Funding for the Al Habtoor Centre at the University of London (SOAS) for Islamic art and culture.
- Employee volunteer programs across Roha Group companies.
- Sustainability initiatives in real estate and other businesses to reduce environmental impact.
The Roha Group views philanthropy and social responsibility as vital along with business growth. It aims to make positive contributions in the UAE and globally. This builds goodwill and brand image as an ethical and responsible company.
Recent Performance
Despite economic challenges in recent years, the Roha Group remains robust and continues to adapt and evolve. Recent performance highlights include:
- Real estate business benefitted from rebound in Dubai property market since 2020.
- Construction unit Habtoor Engineering saw revenue growth from new projects.
- Al Habtoor Motors revenues performing well with rebound in auto sales.
- Hospitality saw pickup after COVID slowdown with relaxed travel restrictions.
- Investments in new sectors like education, retail, and financial services.
Chairman Khalaf Ahmad Al Habtoor stated in a 2022 interview that the group remains in solid financial health. He credits their diversification, nimble decision-making, and family ownership structure for sustaining resilient growth even through volatile market conditions. The next generation is being prepared to inherit the Roha Group and build on its success.
Valuation
As a private family-owned conglomerate, the Roha Group does not disclose financials publicly, making its valuation difficult to estimate. However, available information provides some perspective:
- 2017 revenue estimated at $1.2 billion, likely higher today.
- Flagship Al Habtoor City mixed-use project in Dubai valued at over $1 billion.
- Al Habtoor Motors has AED ~7 billion in assets as of 2018.
- Total asset valuation likely well in excess of $5 billion currently.
- With diversified portfolio, valuations used in transactions likely near 10-12x EBITDA or higher.
While the Roha Group’s enterprise value is not disclosed, comparable metrics from publicly listed conglomerates suggest it could be $10 billion or greater based on its assets, revenues, brand value, and diversified operations.
Conclusion
The Roha Group has grown from a small UAE construction firm in 1968 into a diversified global conglomerate under the leadership and ownership of the Al Habtoor family. Khalaf Ahmad Al Habtoor retains controlling ownership and chairs the group, now with his sons in key executive roles. The family ownership structure provides stability, long-term vision, and quick decision-making that has propelled the Roha Group’s rise over 50+ years. It remains a valuable and well-managed portfolio of businesses across sectors like construction, automotive, hospitality, real estate, education, and finance. The conglomerate will likely continue to thrive under the Al Habtoors as a leading Emirati corporate success story.