Shuaa Capital posts a 21% jump in Q2 net profit while quarterly revenues also increase
Dubai-based Shuaa Capital on Monday said it is planning to make dividend distributions to shareholders for the first time in 10 years.
The company made the announcement as it posted second quarter profits of AED14.6 million, up 21 percent on the same period last year. It also reported quarterly revenues increasing to AED30.8 million.
During this period Shuaa’s subsidiary, Gulf Finance Corporation, also repaid in full its AED450 million syndicated bank facility raised from Abu Dhabi Commercial Bank in 2015, a statement said.
Fawad Tariq-Khan, CEO 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."
He added: “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.”
Shuaa’s Asset Management business, which manages the development of premium real estate projects in Saudi Arabia and the UAE through a series of funds, had a particularly strong quarter, with AED10.5 million in revenues and more than doubled its profits to reach AED4.6 million.
The division is currently approaching the final construction stages of a hospitality building in 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, the company said. A
As of June 30, Shuaa said its balance sheet and total assets were AED1.6 billion with net assets at AED884 million.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.