Shuaa Capital's first-quarter net profit surges 162%

The company’s asset management and investment businesses recorded growth in revenue during the period

Shuaa's first-quarter net income was driven by the company’s asset management business. Jaime Puebla / The National

Shuaa Capital, a Dubai-based investment banking and asset management company, has reported a 162 per cent rise in its first-quarter net profit, boosted by its property and managed funds business.

Net profit attributable to shareholders in the three months to the end of December climbed to Dh15 million ($4.1 million), the company said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.

The company’s asset management business — which encompasses investment funds and managed accounts across real estate, public and private markets, and debt — reported a first-quarter revenue of Dh54 million from management and performance fees, up more than 30 per cent since the first quarter of 2022.

Meanwhile, revenue from Shuaa’s investment banking business, which provides corporate finance advice, as well as equity and debt capital markets and mergers and acquisitions services, increased by 7 per cent to Dh6 million.

Higher growth in trading revenue offset lower advisory fees as no significant transactions were closed during the period by the investment bank, it said.

Total revenue for the reporting period fell on an annual basis to Dh59.7 million, from Dh90.7 million, the company said.

“Our first-quarter results demonstrate continued progress against Shuaa’s focused strategy to deconsolidate and diversify while delivering strong operating income and sustainable returns to our investors and shareholders,” said group chief executive Fawad Khan.

Shuaa has made moves to diversify its product portfolio and grow its fee income business.

In December, it set up three Sharia-compliant funds in the Abu Dhabi Global Market, bringing assets under management on the company's Sharia-compliant platform to more than $200 million.

In February, it announced plans to launch two Sharia-compliant funds in the first half of 2023 to further expand its asset portfolio.

The new funds will be managed by Shuaa GMC under the umbrella of Shuaa's Incorporated Cell Company fund structure, domiciled within the ADGM.

One of the funds will focus on Saudi Arabia and the GCC.

“With this launch, the ICC umbrella now offers five funds catering [to] the strong investor appetite for diversification of their Sharia-compliant investments across geographies and asset classes,” Shuaa said at the time.