SHUAA Capital

SHUAA Capital (DFM: SHUAA), is a Dubai-based financial services provider.^[2] The Company was established in the United Arab Emirates in 1979 and has operations in the UAE and Saudi Arabia.^[3]

SHUAA is a public shareholding company regulated by the Central Bank of the United Arab Emirates and listed on the Dubai Financial Market. It had a market capitalisation of 1,214 million, as of 21 January 2014.^[4] SHUAA focuses on four core areas: Asset Management, Investment Banking, Capital Markets and Credit.

History

• SHUAA was established in the UAE in 1979 as the Arabian General Investment Corporation (AGICO)^[5] by Emiri Decree number 6 of HH Sheikh Rashid Al Maktoum. Initially, AGICO pooled capital from regional Chambers of Commerce and invested it across the region. The Company was listed on the Kuwait Stock Exchange in 1984.^[6]
• In 2000, it listed on the Dubai Financial Market.^[7]
• In 2001, AGICO completed a name and identity change to SHUAA Capital - SHUAA is the Arabic acronym for Arabian General Investment Company.^[8]
• Between the period of 2003 and 2007, SHUAA was involved in a number of IPOs for regional companies including Arabtec,^[9] Amlak Finance,^[10] Aramex,^[11] Petrofac,^[12] Air Arabia,^[13] Deyaar ^[14] and DP World ^[15]
• In 2007 SHUAA opened offices in Saudi Arabia^[16] and issued an AED 1.5 billion (US$408.72 million) convertible bond to Dubai Banking Group, which on maturity in October 2008, was to convert to 250 million shares, representing a 32 per cent stake.^[17]
• Following the global economic downturn, an agreement on the restructuring of the convertible bond with Dubai Banking Group was reached on 2 September 2009 when 515,000,000 shares were issued to Dubai Banking Group. The agreement was based on revised terms and in consideration for the extinguishment of the issued bond, thus giving the Dubai Banking Group a shareholding of 48.4 per cent in SHUAA.^[18]
• In 2010 SHUAA embarked on a restructuring process which included divesting from non-core assets and strengthening its balance sheet.^[19]
• SHUAA continued the restructuring of its cost base in 2011 under a management team led by HH Sheikh Maktoum Hasher Al Maktoum,^[20] exiting its retail brokerage division and non-core investments.^[21] It also closed some regional branch and representative offices and refocused its research department for institutional clients.^[22]
• As a result of the vast restructuring program, SHUAA turned a profit of AED 1.3 million ^[23] in the second quarter of 2013. On January 13, 2014 the company reported preliminary results for 2013 and a net profit of AED 2.8 million.^[24]

Business Segments

Asset Management

SHUAA Asset Management is regulated by the DFSA.^[25] It manages proprietary and third party Funds as well as Discretionary Portfolios for High Net Worth Individuals and Institutions.^[26] SHUAA Asset Management's Gateway Fund^[27] series hold the longest track records for equity funds in the region.^[28]

Investment Banking

The Investment Banking team provides corporate finance advisory, equity and debt capital markets, mergers and acquisitions expertise, private placements, structured investments and other services.^[29]

Credit

SHUAA’s wholly owned subsidiaries, Gulf Finance Corporation (GFC)^[30] and Gulf Installments Company (GIC)^[31] provide SMEs in the UAE and Saudi Arabia with access to funding through asset finance, corporate deposits, invoice finance, financial guarantees and small business loans.

Capital Markets

SHUAA’s Capital Markets division^[32] includes institutional sales and trading to it High Net Worth Individuals, family offices and institutional clients. Capital Markets provides global market access and execution, portfolio advisory services, settlement financing and margin facilities.

References

External links

• SHUAA Capital