Dubai's Shuaa Capital returns to profit in Q1

Investment bank makes $2.2m in three month period compared to a net loss in year-earlier period
Dubai's Shuaa Capital returns to profit in Q1
By Reuters
Sun 13 Apr 2014 01:39 PM

Dubai-based investment bank Shuaa Capital reported AED8.2 million ($2.2 million) in first-quarter net profit on Sunday, driven by lending and investment banking fees.

This compares to a net loss of AED5.9 million in the same quarter last year, the company said in a bourse statement. Revenues rose 77 percent to AED64 million.

Shuaa, once a symbol of the investment banking sector's potential in the region, was hit hard by the financial crisis that weighed on Dubai between 2009 and 2011.

The company, like many other regional investment firms, struggled to stay afloat after a slump in the value of its investment portfolio.

Sheikh Maktoum Hasher Al Maktoum, Shuaa's executive chairman, attributed the higher revenues to a strong recovery in the capital markets, a pick-up in the local market for initial public offers, and asset management business.

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