SHUAA Capital reports record profit of AED74 million

DUBAI, SHUAA Capital today reported full year results for 2017, with the company achieving its highest sustained full-year earnings since 2007. In what has been widely viewed since the first quarter as a clear model of a turnaround story, SHUAA reported AED74 million in profits for 2017 (2016: loss AED 132.5 million), a 156 percent upward movement.

Q4 results saw a notable emergence from a loss of AED 18.9 million in Q4 2016, rising to a profit of AED14.2 million for Q4 2017. Revenues for the last quarter of 2017 were AED 42.8 million, a 22 percent increase on Q4 2016 revenues level of AED 35.1 million. In the midst of a challenging year for regional markets, and under the guidance of a strategy built on strong fundamentals, all five business lines attained optimal performance levels and maintained healthy revenue streams.

The Asset Management division which manages equities, fixed income and real estate projects through a set of funds in both Saudi Arabia and the UAE, continued its strong performance and increased profitability by 105 percent to AED17.0 million. The division delivered its second centrally located project during the year, the Centro Waha hotel in Riyadh. This division continued working on a set of other key and strategically located projects such as the prominent Wadi Al Hada mixed-use complex, and others, some of which may launch during 2018. In September, SHUAA unveiled the ‘Dubawi’ real estate project, the up and coming new landmark on Sheikh Zayed Road in Dubai.

Jassim Alseddiqi, Chairman of SHUAA Capital, said, “At SHUAA Capital, we are proud of the company’s legacy and are committed to its future. We certainly had our work cut out for us in 2017; from re-building the company’s foundation, to executing a new sector-specific strategy and optimising divisional and human asset performance, the achievements of 2017 are solid proof that our new roadmap has put us on the path for long-term growth. We will continue to be market disruptors and roll out innovative and niche products and services. Our pole positions in Capital Markets and real estate asset management are testament to how we are making a difference in an over-crowded financial marketplace. We will continue to seize strategic opportunities”.

Fawad Tariq-Khan, Chief Executive Officer of SHUAA Capital, said, “From the onset, we’ve acknowledged the magnitude of the task ahead of us for turning the company around and positioning it for sustained profitability. These results demonstrate that the key measures we took made sense given SHUAA’s strong heritage as a financial investment bank, even as we implemented them against the backdrop of the region’s ongoing highly volatile situation.”

Fawad further explained, “The results were outstanding, as we witnessed the regional markets responding very well to each of our five business lines. I am confident that the new long-term strategy, blended with the superb task-force we have assembled over the past 12 months, will serve the new and improved SHUAA Capital well. Looking ahead, we will remain focused on our drive towards dominating the financial services space in the Middle East and North Africa.”

Source: Emirates News Agency