Dubai-based Shuaa Capital, a leading financial services provider, has posted a net profit of Dh14.6 million ($3.97 million) for the second quarter (Q2) of the year, as compared to Dh12.1 million for Q2 2017, marking a rise of 21 per cent.

The company’s quarterly revenues increased to Dh30.8 million as against Dh30.4 million recorded during the corresponding period in 2017.

During this period Shuaa’s subsidiary, Gulf Finance Corporation PJSC, successfully repaid in full its Dh450 million syndicated bank facility raised from Abu Dhabi Commercial Bank in 2015 and maintains a strong liquidity position on its balance sheet, a company statement said.

Fawad Tariq-Khan, chief executive officer of Shuaa Capital, said: “We have been very active during the first half in building a platform for the future. Our Egypt and Saudi businesses in particular have achieved a strong growth trajectory, and more importantly, given our strong liquidity position and recent recoveries, we are now in a position to look at making dividend distributions to our shareholders for the first time in ten years.”

“Shareholder returns are key for the Board and management at Shuaa and we remain confident Shuaa can continue on its path to sustained profitability and expanding its platform throughout the region,” he added.

Shuaa’s Asset Management business, which manages the development of premium real estate projects in both Saudi Arabia and the UAE through a series of funds, has had a particularly strong quarter, with Dh10.5 million in revenues (Q2 2017: Dh5.6 million), and more than doubled its profits to reach Dh4.6 million (Q2 2017: Dh1.3 million).

The division is currently approaching the final construction stages of a hospitality building in a third Saudi city (Dammam), with a handover date to be announced soon. Development works on a second multi-purpose residential complex, the Wadi Al Hada project in Riyadh, continues in full force, according to the statement.

As of June 30, 2018, Shuaa’s balance sheet and total assets were Dh1.6billion (December 31, 2017: Dh1.2billion) with net assets at Dh884 million (December 31, 2017: Dh899 million).    

The Board of Directors also took the decision to recommend payment of an interim dividend to shareholders in addition to the previously announced share buyback, the statement said.

 The company will be calling for a general assembly meeting with shareholders during the third quarter to approve the share buyback, along with amending the Company’s Articles of Association in order to implement the payment of interim dividends, it added. – TradeArabia News Service