Shuaa Capital, a Dubai-based investment banking and asset management company, swung to a profit in the first half as revenue climbed on the robust performance of its asset management and investment banking businesses.
Net profit attributable to shareholders in the six months to the end of June rose to Dh20 million ($5.45 million), from a loss of Dh164 million in the same period in 2022, the company said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.
Net operating income at the end of June rose tenfold to Dh32.4 million, up from Dh2.9 million from a year earlier.
Revenue for the reporting period surged 68 per cent, year on year, on a normalised basis, to Dh99 million, driven by recurring income from all business segments, as well as “performance fees recognised in the asset management segment”, Shuaa said.
“The first-half results underline Shuaa’s robust return to strong profitability, driven by our commitment to simplifying our balance sheet structure and reducing debt,” said its group chief executive Fawad Khan.
“Our existing portfolio and assets under management (AUM) reflect our strategy to diversify and boost our recurring fee income.”
The company’s asset management business, which encompasses investments funds and managed accounts across property, public and private markets, and debt, reported first-half revenue of Dh88 million in management and performance fees, an 11 per cent rise on an annual basis.
In July, Shuaa sold a plot of land in Business Bay to developer Danube Properties for Dh190 million.
The deal, arranged on behalf of its subsidiaries and other investors, was part of the company’s continued strategy to consolidate its asset portfolio, it said at the time.
“Our asset management strategy continuously seeks out new investment opportunities and creates investment products for our increasingly diversified investor base,” Mr Khan said.
Shuaa’s investment banking business, which includes corporate finance advisory, equity and debt capital market deals, merger and acquisition advice, as well as sales and trading, contributed Dh10 million to group revenue, a more than 25 per cent increase from a year earlier.
Higher growth in trading revenue offset lower advisory fees as no significant transactions were closed during the period by the investment bank, it said.
Shuaa, which has AUMs of $5 billion, has made efforts in recent quarters to diversify its product portfolio and increase its fee-income business.
In February, it announced the launch of two Sharia-compliant funds to further expand its portfolio of assets.
The funds, managed by Shuaa GMC, under the umbrella of Shuaa's Incorporated Cell Company (ICC) fund structure, will be domiciled within the Abu Dhabi Global Market.
One of the funds will focus on Saudi Arabia and the GCC, Shuaa Capital said at the time.
The other is a dedicated Sharia-compliant money market fund. The launch of both investment vehicles is expected to take Shuaa's assets managed by its product platform to more than $400 million.
In December, Shuaa also set up three Sharia-compliant funds within the ADGM, bringing AUMs on the company's Sharia-compliant platform to more than $200 million.
Shuaa said on Thursday that it had continued to deleverage its balance sheet during the first half of 2023, with the debt-to-equity ratio further improving to 88 per cent, from 123 per cent in the first half of 2022.
The company made debt repayments of Dh173 million since December 2022, highlighting the “continued commitment to deleverage and simplify its balance sheet and position for [the future] growth”, it said.
Sukuk
An Islamic bond structured in a way to generate returns without violating Sharia strictures on prohibition of interest.
SHAITTAN
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COMPANY%20PROFILE
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
The%20Genius%20of%20Their%20Age
%3Cp%3EAuthor%3A%20S%20Frederick%20Starr%3Cbr%3EPublisher%3A%20Oxford%20University%20Press%3Cbr%3EPages%3A%20290%3Cbr%3EAvailable%3A%20January%2024%3C%2Fp%3E%0A
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Shooting Ghosts: A U.S. Marine, a Combat Photographer, and Their Journey Back from War by Thomas J. Brennan and Finbarr O’Reilly
UAE currency: the story behind the money in your pockets
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