Shuaa Capital, the Dubai-based investment bank that turned the corner in 2013 amid rising equity markets, has appointed a seasoned banker on its board after Michael Philipp stepped down from the post.
The choice of Mohammed Kamran Wajid, the chief executive of Emirates Financial Services and Emirates NBD Capital, as non-executive director on Shuaa’s board is expected to give a boost to the firm’s planned growth in the underwriting of securities such as stocks and bonds as well as related advisory services amid a regional resurgence of investment banking.
“During his tenure at Emirates NBD he contributed to the growth of the investment banking business,” Sheikh Maktoum Hasher Al Maktoum, the executive chairman of Shuaa said yesterday. “His experience will add credence to our growth plans.”
Mr Philipp joined Shuaa Capital as interim chief executive and member of the board of directors. He was previously a member of the group executive board of Credit Suisse as well as the chairman and chief executive of Credit Suisse Europe, Middle East and Africa.
Separately, Shuaa released its audited fourth quarter and 2013 annual results yesterday after releasing preliminary headline figures in January.
The investment bank had its third consecutive quarterly profit in more than five years amid a turnaround in the UAE’s economy. On an annual basis, the firm posted in 2013 its first gain since the financial crisis nearly brought it to its knees.
“2013 was a very significant year for the company as we successfully completed the turnaround, returned to profitability and strengthened the foundation to grow Shuaa in the years ahead,” Sheikh Maktoum said.
“All our business lines have responded to the positive market environment and emerging market opportunities.”
Net income in the fourth quarter increased to Dh3.8 million versus a loss of Dh21m in the same quarter of 2012 as revenues gained 153 per cent to Dh64m, the bank said. For the whole of 2013, the investment bank’s profit advanced to Dh2.8m compared to a net loss of Dh59m in 2012.
Revenues for the year rose 44 per cent to Dh198m, driven by improvements in asset management, investment banking, capital markets and lending, it said. The firm’s investment banking division recorded Dh3.8 million last year from a loss of Dh 4.5m in 2012 amid new leadership.
Shuaa appointed Karim Schoeib as the firm’s investment banking chief executive last December with a remit that included corporate finance advisory and capital markets. Mr Schoeib has worked with the Shuaa since 2005 and his résumé includes leading a number of initial public offerings and private placements in the UAE.
While many businesses in the country have shied away public offerings in recent years, the stellar performance of stock indexes in 2013 has made many companies reconsider amid rising valuations, bankers say.
Dubai’s main benchmark more than doubled last year amid a turnaround in the UAE’s economy that has also pumped up property prices. Dubai’s measure has gained 24 per cent this year, making it the world’s best performing index.
mkassem@thenational.ae
