Shuaa Capital completes sale of its securities and market-making businesses

Deal valued at Dh100m comes as company focuses on selling non-core assets

Shuaa Capital increased assets under management to $14bn by the end of 2019. Jaime Puebla / The National
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Shuaa Capital completed the sale of its securities and market-making businesses for Dh100 million, the company said on Monday.

The new deal comes as the group continues to implement its non-core exit strategy to focus on growing and expanding its asset management and investment banking platform.

On January 15, 2020, Shuaa announced its agreement to sell its equities market-making business to Al Ramz Corporation Investment & Development. It also sold its securities brokerage unit in the UAE to IHC RSC, a subsidiary of International Holdings Company last year.

“Both transactions were completed under the terms of an all-cash deal with a total deal value of Dh100m,” Shuaa Capital said in a statement.

Shuaa Capital merged with Abu Dhabi Financial Group last year, which created an enlarged business with both an asset management and investment banking platform, with diversified revenue streams across seven countries including the UAE, Saudi Arabia and the UK.

Shuaa’s asset management division manages real estate funds and projects, investment portfolios and funds in the regional equities, fixed income and credit markets, while its investment banking arm provides corporate finance advisory, transaction services and private placements, among others.

Last month, one of Shuaa’s offshore subsidiaries sealed a deal to manage an investment portfolio of assets worth $400m (Dh1.4 billion) to increase the assets under management of the company and its subsidiaries to $13.4bn.