Shuaa Capital swings to profit in first half

ProfitDubai-based financial services firm Shuaa Capital made a profit of 14.4 million dirhams ($3.9 million) in the first half of the year, compared with a loss of 4.6 million dirhams in the same period of 2013.

Asset management, one of Shuaa Capital’s main business lines alongside investment banking and capital markets, made a crucial contribution to the good results. Of the 6.2 million dirham profit that the firm made in the second quarter, asset management contributed 4.2 million dirhams.

Investment banking made a profit of 4.5 million dirhams in the quarter, while capital markets made 1.8 million dirhams and lending made 7 million dirhams. These results were offset by a loss of 11.2 million in the firm’s centralized corporate cost centre.

“To the backdrop of increased client activity, we have expanded our core businesses and hired new talent,” says Sheikh Maktoum Hasher Al Maktoum, executive chairman of Shuaa Capital, who added that the firm expects to increase its market share of institutional investor assets.

The profits come on the back of revenues of 116 million dirhams in the first half of the year, a rise of nearly 50% compared with the same period in 2013.

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