Boosted by its property and managed funds business, Shuaa reported a 60 per cent rise in its first-quarter net profit. Jaime Puebla / The National
Boosted by its property and managed funds business, Shuaa reported a 60 per cent rise in its first-quarter net profit. Jaime Puebla / The National
Boosted by its property and managed funds business, Shuaa reported a 60 per cent rise in its first-quarter net profit. Jaime Puebla / The National
Boosted by its property and managed funds business, Shuaa reported a 60 per cent rise in its first-quarter net profit. Jaime Puebla / The National

Business

Property

Dubai's Shuaa Capital sells plot in Business Bay to Danube Properties for $51.7m

Company plans to develop a residential tower on the acquired land

Alkesh Sharma
Alkesh Sharma

July 05, 2023

  • English
  • Arabic

Shuaa Capital, an investment banking and asset management company in Dubai, has sold a plot of land in Business Bay to developer Danube Properties for Dh190 million ($51.73 million).

The Dubai-listed company said it has arranged the sale on behalf of its subsidiaries and other investors. The transaction is part of Shuaa's ongoing strategy to consolidate its asset portfolio, it said in a statement on Tuesday.

“This agreement underscores our dedication to generating shareholder value and participating in the advancement of Dubai's real estate sector. Our strategy focuses on recognising and seizing opportunities that resonate with the ever-evolving UAE market,” said Fawad Tariq Khan, group chief executive of Shuaa Capital.

Boosted by its property and managed funds business, Shuaa reported a 60 per cent quarterly increase in first-quarter net profit.

Net profit attributable to shareholders in the first quarter climbed to almost Dh15 million. Total revenues climbed 1 per cent to nearly Dh60 million in the quarter, driven by recurring revenue generation across all segments.

“This purchase will help Danube Properties to create a more attractive project for investors and home buyers to invest and benefit from future price appreciation, due to its attractive location,” said Rizwan Sajan, founder and chairman of Danube Group.

“Business Bay forms the new business district ... purchase of this particular piece of land will help us strengthen Business Bay as a vibrant downtown where people will be able to live, work and do business – at a location next to Burj Khalifa, the world’s tallest tower,” Mr Sajan said.

Danube Properties plans to develop a residential tower on the acquired plot.

The company has launched six projects, worth Dh3.42 billion, between January 2022 and January 2023. The developer’s current development portfolio includes 22 projects and 10,713 units, with a combined sales value exceeding Dh10 billion.

  • Of all the local amenity options offered in Dubai, parks (85 per cent) were an overwhelming favourite among high-net-worth individuals. EPA
    Of all the local amenity options offered in Dubai, parks (85 per cent) were an overwhelming favourite among high-net-worth individuals. EPA
  • The desire to be near a park was highest among East Asians, at 95 per cent, while Saudis considered it the most important factor. EPA
    The desire to be near a park was highest among East Asians, at 95 per cent, while Saudis considered it the most important factor. EPA
  • Jumeirah Bay Island is one of three prime residential neighbourhoods in Dubai
    Jumeirah Bay Island is one of three prime residential neighbourhoods in Dubai
  • Dubai's prime residential neighbourhoods – the Palm Jumeirah, Emirates Hills; and Jumeirah Bay Island – dominate luxury home sales. Reuters
    Dubai's prime residential neighbourhoods – the Palm Jumeirah, Emirates Hills; and Jumeirah Bay Island – dominate luxury home sales. Reuters
  • More neighbourhoods in Dubai are likely to be classed as prime if they continue to achieve multimillion-dollar sales figures. AP
    More neighbourhoods in Dubai are likely to be classed as prime if they continue to achieve multimillion-dollar sales figures. AP
  • Reports finds that the super-rich would rather buy a property they can take possession of immediately than a project that will be ready some time in the future. AFP
    Reports finds that the super-rich would rather buy a property they can take possession of immediately than a project that will be ready some time in the future. AFP

The UAE property market made a strong recovery from the coronavirus-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme and the economic boost generated by Expo 2020 Dubai and higher oil prices.

The performance of the Dubai property market last year was described as exceptional by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, as the value of deals jumped 76.5 per cent to a high of Dh528 billion.

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The five pillars of Islam
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Name: Hassan Mohsen Elhais

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Results:

5pm: Abu Dhabi Fillies Classic (PA) Prestige Dh 110,000 1.400m | Winner: AF Mouthirah, Tadhg O’Shea (jockey), Ernst Oertel (trainer)

5.30pm: Abu Dhabi Colts Classic (PA) Prestige Dh 110,000 1,400m | Winner: AF Saab, Antonio Fresu, Ernst Oertel

6pm: Maiden (PA) Dh 80,000 1,600m | Winner: Majd Al Gharbia, Saif Al Balushi, Ridha ben Attia

6.30pm: Abu Dhabi Championship (PA) Listed Dh 180,000 1,600m | Winner: RB Money To Burn, Pat Cosgrave, Eric Lemartinel

7pm: Wathba Stallions Cup (PA) Handicap Dh 70,000 2,200m | Winner: AF Kafu, Tadhg O’Shea, Ernst Oertel

7.30pm: Handicap (PA) Dh 100,000 2,400m | Winner: Brass Ring, Fabrice Veron, Ismail Mohammed

US PGA Championship in numbers

1 Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.

2 To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.

3 Number of seasons without a major for McIlroy, who finished in a tie for 22nd.

4 Louis Oosthuizen has now finished second in all four of the game's major championships.

5 In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.

6 For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.

7 Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.

8 Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.

9 Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.

10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.

11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.

12 Paul Casey was a combined 12 under par for his first round in this year's majors.

13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.

14 The world ranking of Justin Thomas before his victory.

15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.

16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.

17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.

18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).

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From: Lonely Loris is a Sunda slow loris, one of nine species of the animal native to Indonesia, Malaysia, Thailand and Singapore

Status: Critically endangered, and listed as vulnerable on the International Union for Conservation of Nature red list due to growing demand in the global exotic pet trade. It is one of the most popular primate species found at Indonesian pet markets

Likes: Sleeping, which they do for up to 18 hours a day. When they are awake, they like to eat fruit, insects, small birds and reptiles and some types of vegetation

Dislikes: Sunlight. Being a nocturnal animal, the slow loris wakes around sunset and is active throughout the night

Superpowers: His dangerous elbows. The slow loris’s doe eyes may make it look cute, but it is also deadly. The only known venomous primate, it hisses and clasps its paws and can produce a venom from its elbow that can cause anaphylactic shock and even death in humans

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

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Unresolved crisis

Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.

Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.

The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.

Updated: July 05, 2023, 2:27 PM
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