Dubai: Shuaa Capital said on Thursday its net loss for the nine months to September expanded to Dh113.6 million from Dh28.6 million in the same period last year.

The total revenues for the nine months to September edged up slightly to Dh138.7 million from Dh138.1 million, the firm said in an emailed statement.

The third quarter saw total revenues grow to Dh48.7 million, a 42 per cent increase on the third quarter of 2015 when total revenues were Dh34.3 million. Net loss was Dh35.3 million for the quarter as compared to net loss of Dh28.6 million in the corresponding quarter of 2015.

“As volatility across regional markets persists, we remain focused on our strategy of realigning and strengthening our business lines through product diversification and the appointment of revenue-driving staff. And while we are beginning to see positive results of this strategy on our core revenue lines, there continues to be stress on our lending division,” Abdul Rahman Hareb Rashed Al Hareb, Chairman of Shuaa Capital said in a statement.

“I would also like to emphasise our strong business model in the Saudi market. Saudi Arabia remains a vital market for us, and we will continue to pursue strategic growth opportunities there alongside our partners,” Al Hareb added.

Asset Management Business

SHUAA’s Asset Management business, consisting of the UAE-based Asset Management division and the real estate private equity fund manager and developer Shuaa Capital Saudi Arabia, reported total revenues of Dh5.8 million, a 74 per cent increase quarter-on-quarter and a net profit of Dh0.8 million, as against a loss of Dh0.4 million in the same quarter last year.

The UAE based Asset Management division which manages the firm’s flagship funds the Arab and Emirates Gateway Funds, has made a set of key hires over the course of the quarter and are now working on promising new initiatives which are expected to gain traction in the months to come. The division will soon announce the signing of distribution agreements with leading European Asset Managers as well as the launch of new products and solutions. Assets Under Management (AUMs) in the funds and Discretionary Portfolio Managements (DPMs) have remained stable during the course of third quarter.

The Capital Markets division registered an increase in revenues to Dh1.7 million in the third quarter as against Dh0.9 million in the same quarter last year despite lower traded volumes across the markets.