By Gavin Gibbon
Deal will see all staff and market-making activities transferred to Al Ramz
UAE-based Al Ramz Corporation Investment & Development has acquired the market-making business of Shuaa Capital.
The deal will see all staff and market-making activities transferred to Al Ramz, according to a statement.
Mohammad Al Mortada Al Dandashi, managing director of Al Ramz Corporation, said: “Market-making is a core business in our strategy which we continue to develop and grow. For over two decades now, Al Ramz has played an integral role in developing the UAE markets, contributing to the market’s liquidity, efficiency and appeal to investors.”
Founded in 1998, Al Ramz is a public joint stock company listed on the Dubai Financial Market and regulated by the UAE Securities and Commodities Authority and the Dubai Financial Services Authority.
Shuaa – which recently completed a merger with Abu Dhabi Financial Group – announced in November that a deal to sell its market-making business to IHC RSC Ltd, a subsidiary of International Holdings Company, had collapsed.
Mustafa Kheriba, deputy chief executive officer and group head of asset management of Shuaa Capital, said: “The sale of the equities market-making business to Al Ramz is in line with our post-merger strategy to realign efforts on Shuaa’s capital-efficient business and exit non-core businesses so we can further grow and expand the group’s asset management and investment banking platform.”
In November, Shuaa Capital revealed it had returned to profit following its merger with ADFG which was completed in August.
Net income for the three months ended September 30, 2019, was AED21.8 million ($5.9m), driven by an AED31.2m ($8.5m) contribution from ADFG.
Results also showed a considerably enhanced balance sheet for the group following the merger, with retained earnings of AED153.8m ($41.9m).