Shuaa to grow insurance assets under management to $500m in next three years

The company continues to look for new opportunities to boost growth

Shuaa Capital's offices in Dubai. The company currently manages insurance assets worth $136m. Jaime Puebla / The National

Dubai-based investment bank Shuaa Capital aims to grow its insurance assets under management to $500 million in the next three years as it continues to focus on expansion through new products and other offerings.

The company currently manages insurance assets worth $136m, it said in a statement on Tuesday to the Dubai Financial Market, where its shares are traded.

"Insurance, both conventional and takaful, is a strong recurring income segment of Shuaa's asset management business despite low margins and, as such, we are focused on strategically growing our insurance assets under management,” said Ajit Joshi, managing director and head of public and private markets at Shuaa Capital.

The Dubai-based company is also investing “significantly” to expand its team and hired a portfolio manager with experience in global equities this year.

“This is in line with our strategy to expand our range of products and services with the right capabilities to meet the changing needs of our clients while identifying long-term value creation opportunities for them.”

Shuaa is investing in insurance companies through its Goldilocks fund, which is regulated by the Abu Dhabi Global Market’s Financial Services Regulatory Authority.

Over the past three years, the company has managed the equity and debt portfolios of five major insurance companies through its managed funds and discretionary portfolios, it said.

Shuaa Capital merged with the Abu Dhabi Financial Group two years ago to create a business with both an asset management and investment banking platform that offers diversified revenue streams across different countries.

The company also plans to set up three special purpose acquisition companies, or Spacs, with a capital of $200m each as it looks to tap into the growing market for blank-cheque companies.

The company, which has assets under management worth $14 billion, led the funding round for music-streaming service Anghami late last year.

Earlier this year, Shuaa's chief executive Jassim Alseddiqi increased his stake in the investment bank and now controls more than a quarter of the company.