Dubai-based Shuaa Capital has posted year-to-date (YTD) net profit of Dh60 million ($60.3 million), as compared to a net loss of Dh114 million during the same period in 2016, thus beating every previous year’s annual earnings level since 2007.

Year to date, net profits stood at Shuaa’s re-emergence as a main player in the region’s financial sector since January 2017 was driven by its new shareholder Abu Dhabi Financial Group, a statement added.

The company posted a net profit of Dh23million ($6.26 million) for the third quarter (Q3) of the year, marking an increase of 165 per cent on the loss of Dh35 million during the same period of last year.

Shuaa Capital recorded profits for the third consecutive quarter as its turnaround under the new Board and executive management team continued, a statement said.

The firm’s real estate asset management and credit business lines reported particularly strong performance for the three months ending September 30, 2017, with profits of Dh6.3 million (Q3 2016: Dh0.7 million) and Dh15.7 million (Q3 2016: loss Dh38.6 million) respectively.

Building on the success of its real estate business in the Saudi Arabian market, which has managed hospitality funds and the development of large scale projects for the past eight years, Shuaa recently activated real estate asset management operations in its home UAE market.

The quarter witnessed the unveiling of plans to manage the development of a Dh1.5 billion mixed-use tower called the ‘Dubawi’, located on Sheikh Zayed Road.

Fawad Tariq-Khan, general manager of Shuaa Capital said: “We are proud to have completed the initial building blocks required to return Shuaa to sustainable profitability. With a strong and efficient business model now in place, our focus on innovation and differentiation is delivering real value. From our operations and affiliations in the UAE, to our growing presence and partnerships in Saudi Arabia and beyond, Shuaa is rebuilding a network to deliver competitive advantages in the region.”

The Group’s credit business, comprising Gulf Finance UAE and its Shari’ah-compliant arm Gulf Finance Saudi Arabia, have benefitted significantly from the turnaround strategy, which has helped them swiftly restructure, consolidate and emerge from losses. The two companies now focus solely on asset-backed lending facilities, and have once again attained optimum operational effectiveness.

Tariq-Khan added: “Our operations are now stream-lined and we are actively looking for growth in the Middle East and North Africa region through both organic expansion and acquisitions.”

The third quarter witnessed a series of milestones by Shuaa’s various divisions, including a planned expansion of its securities brokerage business to include the Egyptian market with an active office in Cairo being launched in Q4. – TradeArabia News Service