Dubai-based investment manager Shuaa Capital has recorded a $15.3 million net loss for the first half of 2019, which it has put down to the costs associated with its planned merger with Abu Dhabi Financial Group (ADFG). The loss contrasts with the $7.16 million profit made in the same period last year.
In the last set of results to be issued as a stand-alone entity, Shuaa also posted its second quarter figures for 2019 which showed a net loss of $8.60 million against a $3.98 million profit for the second quarter of 2018.
In addition to the costs associated with the merger, Shuaa Capital also said its losses included final provisions of $3.68 million for its exposure to legacy investments.
“Shuaa’s final set of quarterly earnings reflect the completion of expenses and provisions relating to the merger as well as legacy investments,” said Fawad Tariq-Khan, of Shuaa Capital. “More importantly, our operating lines continue to grow in revenue and these will continue to serve as crucial elements for the new and enlarged entity well into the future.
“Following the completion of the merger, the various teams at Shuaa and ADFG are now investing considerable joint efforts building a solid long-term road map for this newly created regional financial powerhouse.”
Shuaa Capital also announced the appointment of former Mubadala executive Masood M Sharif Mahmood as a board member.
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