Shuaa Capital's nine-month profit rises on strong performance

Net profit for the January-September period surges to $24.7m

Abu Dhabi, United Arab Emirates - May 8th, 2018: Jassim Alseddiqi speaks about Engineering Investment at The National's Future Forum. Tuesday, May 8th, 2018 at Cleveland Clinic, Abu Dhabi. Chris Whiteoak / The National
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Dubai-based investment bank Shuaa Capital posted a higher profit during the first nine months of this year, driven by stable recurring revenues and strong performance in its public markets fund.

Net profit attributable to shareholders for the January-September period rose to Dh89 million ($24.7m), up more than 39 per cent on an annualised basis, the company said in a statement to the Dubai Financial Market where its shares are traded. Net profit in the third quarter to September 30 was Dh35m, a quarterly increase of 19 per cent.

“We have effectively demonstrated the resilience of our revenues and our disciplined approach to managing costs as we continue to invest in improving our core offerings and capabilities,” Jassim Alseddiqi, group chief executive of Shuaa Capital, said.

“Our focus is now firmly on growing our recurring revenue streams, building permanent capital vehicles in asset management and broadening our footprint in investment banking,” Mr Alseddiqi said.

In the July-September period, Shuaa reported its third consecutive quarter of Ebitda (earnings before interest, taxes, depreciation and amortisation) growth to Dh83m, an increase of 5 per cent quarter-on-quarter.

Shuaa, which has assets of nearly $14 billion under management, led the funding round for music-streaming service Anghami late last year.

It is also launching a digital platform to expand its wealth management services and in June hired a former Visa executive, Hadi Raad, to run its FinTech business.

Shuaa’s new FinTech business is being created with the aim of providing investors with a seamless digital wealth management experience that leverages new technologies such as artificial intelligence and machine learning, the company said.

“We are equally pleased with the progress we are making in building a digital wealth management platform. In addition, our role in the upcoming listing of Anghami on Nasdaq further demonstrates the breadth of our capabilities, and we remain on track to complete the transaction by the end of the year,” Mr Alseddiqi said.

“With all these exciting developments under way, we have laid the foundation for sustainable growth. As we enter the final quarter with positive momentum, I look forward to the remainder of the year with confidence.”

As part of its strategy to establish more permanent capital vehicles, Shuaa launched the ICC Fund Platform last year. It helped to serve the company’s insurance clients and enhance its products and service offerings with the right capabilities to meet the changing needs of clients, Shuaa said.

“This platform has enabled Shuaa to become a key partner for insurers seeking higher and more consistent returns through diversification strategies that meet regulatory requirements.”

At the end of the third quarter, Shuaa’s insurance assets under management stood at more than $135m and the company predicts “incremental growth” in the next few years.

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

Updated: November 10, 2021, 8:17 PM