Shuaa Capital yesterday reported a 58 per cent year-on-year rise in fourth-quarter revenue of Dh40.1 million, although it posted quarterly and full-year losses.
The Dubai investment bank announced a fourth-quarter loss of Dh161.8 million compared with a loss ofDh14.8m in the same quarter last year. It had an overall loss of Dh190.3m for 2015, having notched a Dh25.8m profit in 2014, up from Dh2.8m in 2013.
Shuaa attributed its negative performance to Gulf Finance, the SME lending business, which set aside provisions of Dh154.6m against bad loans.
Its full-year revenue was Dh178.2m compared with Dh213.4m in 2014.
“The difficult market conditions driven by the decline in oil prices, global economic instability and continued political uncertainty in the region witnessed during the course of 2015 created a challenging operating environment for Shuaa’s business units, particularly in the second half of the year,” said Abdul Rahman Hareb Rashed Al Hareb, the chairman of Shuaa Capital.
“We have, during the course of 2015, closely monitored market developments and reassessed our positioning accordingly and we are working on a number of initiatives that we are confident will enhance Shuaa’s performance in 2016.”
Gulf Finance UAE and Gulf Finance Saudi Arabia reported a combined 21 per cent increase in revenue to Dh159.7m and an overall loss of Dh119.9m for the year. At year-end, the size of the two firms’ loan portfolios were Dh925m and Dh193m, respectively.
Shuaa has recently signed a memorandum of understanding with the hotel and leisure chain Jumeirah Group to form a strategicpartnership in the Saudi hotels business to develop projects under the Jumeirah brand.
It has already helped to fund developments in Jeddah, Riyadh and Dammam, via its 535m Saudi riyal (Dh523.8m) Sharia-compliant Saudi Hospitality Fund 1.
ascott@thenational.ae
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