Dubai Group agrees sale of Shuaa Capital stake

Handshake contractDubai Group has agreed to sell its 48% stake in Shuaa Capital to Abu Dhabi Financial Group as part of a disposal agreed with creditors.

The embattled Dubai Group was among several Dubai entities that found themselves saddled with unaffordable debts during the financial crisis. In 2014, the group finalised terms for restructuring its debts in which its creditors agreed to extend its deadlines to give it time to sell certain assets.

Set up in 2011, Abu Dhabi Financial Group is an investment company with a focus on financial services and real estate that has more than $3.5 billion under management.

Jassim Alseddiqi, chief executive of Abu Dhabi Financial Group, says the Shuaa Capital acquisition will provide his firm with “a significant stake in one of the Middle East’s most illustrious financial services institutions”.

Based in Dubai and listed on the Dubai Financial Market, Shuaa Capital is involved in a range of financial activities including investment banking and asset management.

The purchase price was not disclosed, though media reports from earlier this year suggested the stake was worth about $10 million. The transaction is subject to regulatory approval.

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