Shuaa Capital returned to profit after seven consecutive quarters of losses, trumping analysts’ expectations of another loss-making quarter.
The Dubai-based investment bank reported net profits of Dh1.3 million in the second quarter, up from a loss of Dh15.8m during the same period last year.
It was the sixth time Shuaa reported a quarterly profit in the past five years, which have been marked by sustained quarterly losses and several changes of chief executive.
“Shuaa has continued to make good progress in the second quarter and this underlines our systematic approach towards generating long-term sustained profitability,” Sheikh Maktoum Hasher Al Maktoum, Shuaa’s executive chairman, said in a statement.
“The engine room, centred on our market-leading SME [small-to-medium enterprise] lending business, has performed well as we have continued to deploy our balance sheet lending to companies both in the UAE and in Saudi Arabia, where there is significant demand for secured asset-backed lending.”
The bank’s shares fell as much as 3.4 per cent in early trading before paring declines to close down 2.6 per cent at 73.3 fils each. Analysts estimate Shuaa will report a full-year loss of Dh33.1m in 2013.
Shuaa's loan book grew by 15 per cent during the quarter to Dh730.9m as it tapped into demand for small business credit.
Revenues almost doubled during the quarter, growing by 95.2 per cent to Dh43.3m.
Shuaa’s asset management arm returned to profit, generating income of Dh2.5m in the second quarter after a small loss in the corresponding period last year.
In the year-to-date period, the UAE’s markets were among the five best-performing worldwide.
However, the bank’s income from its investment banking arm dipped to Dh300,000 from Dh1.5m a year earlier as fees and commissions dropped and equity capital markets activity dwindled.
“The team continues to work on mandates and are hopeful in showing a stronger performance in the second half of the year,” Shuaa’s statement added.
The UAE’s stock markets have not had a successful initial public offering since 2011, with companies instead opting to tap equity markets with share sales in London and New York.
Shuaa announced the closure of its retail brokerage arm in late 2011 to target institutional clients instead.
ghunter@thenational.ae
Countries recognising Palestine
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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.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The 12 breakaway clubs
England
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Italy
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Spain
Atletico Madrid, Barcelona, Real Madrid
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Dos
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- Always ask for the dress code if you don’t know
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Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.
