By Sam Bridge
Shuaa Capital plan includes expansion of its investment banking franchise, growing its asset management business and enlarging its regional footprint
Dubai-based Shuaa Capital has secured board approval for a company strategy for 2020 designed to drive growth despite the twin challenges of low oil prices and the new coronavirus.
Backed by a profitable year in 2019, the company, created by the merger of Shuaa Capital and Abu Dhabi Financial Group (ADFG) last year, said it has set clear goals for 2020 including the expansion of its investment banking franchise, growing its asset management business and enlarging its regional footprint.
Shuaa Capital also aims to increase recurring income by engineering new products, growing both permanent capital vehicles and its fixed income platform.
The strategy seeks to increase profitability and strengthen control by digitising the company, optimising its balance sheet structure, and increasing operational efficiency, a statement said.
Shuaa added that it intends to deliver long-term value for its shareholders while increasing assets under management to $20 billion.
Fadhel Alali, chairman of Shuaa Capital, said: “We successfully completed a transformational merger... setting a benchmark for 2020 and onward. While operating under a new vision and strategy, we have confidence in the management capability to deliver.”
Jassim Alseddiqi, CEO of Shuaa Capital, added: “This well-defined strategy sets the foundation for significant and sustainable growth, despite market challenges resulting from Covid-19 and falling oil prices.
"We have always been pioneers in exploring and creating profitable opportunities amid challenging times. Our strategic plans, ambition and talent will enable us to strengthen our position as a leading regional investment manager, achieve regional dominance in investment banking and solidify our innovation leadership.”
Shuaa reported a net profit of AED47 million last year, showing an immediate positive outcome of the merger between ADFG and Shuaa.
The company also achieved a 28 percent reduction in non-core assets in 2019 mainly through the sale of its brokerage arm and exit of equities market-making business for a total deal value of AED100 million.