Shuaa Capital: A New Chapter?

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Shuaa Capital, the financial service provider based in Dubai, has recently recorded net profits of $6.3m in the third quarter, marking a significant shift away from two years of losses. This will undoubtedly come as welcome news to the firm, who can now look to growing the business further.

The firm is once again a force to be reckoned with in the financial services world, and could well be on track for further successes for the foreseeable future, especially if they continue to grow so strongly. Here are some further details on Shuaa Capital and its potentially bright future.

The Turnaround

Such a major turnaround in the company’s profits can be largely attributed to the appointment of a new board of executives in November of last year, who have managed to modify the business model to gear it towards success.

Many of the gains enjoyed by Shuaa Capital have been driven by proprietary investments and cost controls put in place by the company. Clearly the new board of directors have been having a major impact on the running of the company, and the fact that their lending unit became profitable for the first time since 2015 shows the extent to which their changes have contributed towards the company’s newfound success.

“The fact that their lending unit became profitable for the first time since 2015 shows the extent to which their changes have contributed towards the company’s newfound success”.

Investors

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Now that the company has begun its journey towards success, it is sure to be a more attractive investment option amongst investors in the region. From purchasing shares in the company to spread betting on their price movements, Shuaa Capital’s recent gains are bound to cause a stir in the investment sphere.

It is also likely that the firm’s lending unit will also be able to invest further in a greater number of SMEs in the region due to the Q3 profits, meaning that there may be a surge in the growth of SMEs as well as the profits of this section of the company further down the line.

Real Estate/Asset Management

One of the truly standout sections of the company, real estate asset management, brought in profits of Dh6.3 million in the months leading up to September, in sharp contrast to the previous year which saw a miniscule profit of Dh0.7 million. This is especially impressive given that this section of the company is fairly new, and only recently started operating in the UAE market.

If this department continues to grow at this rate, it could well be one of the company’s major profit makers, and is bound to contribute towards its potential future success.

Acquisitions

“One exciting element of the company’s future is the potential acquisitions which it may be involved in over the coming years”.

One exciting element of the company’s future is the potential acquisitions which it may be involved in over the coming years. It recently bought an 11% stake in Amwal International Investment (a company based in Kuwait).

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This is a good measure of how the company views its future operations, and how it might grow in the future. With money coming in from other successful ventures, the company could well be on track to make serious progress in the coming years, as long as they continue performing strongly.

The Future

The future for Shuaa Capital certainly seems to be promising, but that is not to say that the work of the new executives should stop. If anything, now is the time for them to push for greater growth whilst ensuring that the company remains profitable.

The new business model does seem to be sustainable, but the company will need to remain adaptable and versatile in today’s ever changing economic climate. The business is also likely to enjoy a surge in interest, and perhaps customers, as news spreads that they are once again a major player in the financial services industry.

Ultimately, Shuaa Capital certainly seems to have started a new chapter as a successful firm, expanding operations and aiming for further growth in the future. As long as their current trajectory remains strong, it is easy to see them becoming one of the most prosperous companies in the region once again.

Article by Edward Roebuck

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