Stock - Shuaa
Back into positive territory, that's where Shuaa finds itself at the end of June 2023. Image Credit: Shutterstock

Dubai: The Dubai investment firm Shuaa swung back into profits, with a Dh20 million haul in the first-half of 2023, against Dh164 million in losses last year. The numbers suggest the company's bets across asset categories are paying off, while dealing with some of the legacy issues.

This came off total revenues of Dh99 million, which is a handsome 68 per cent gain on a normalised basis. Recurring revenues contributed from all its business segments as well as performance fees that were recognised in the asset management segment.

"The first-half results underline Shuaa’s robust return to strong profitability, driven by our commitment to simplifying our balance-sheet structure and reducing debt liabilities," said Fawad Tariq Khan, Group CEO.

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Shuaa, which is also going big on an upscale property development in Dubai, made Dh173 million in debt repayments since December 2022. In a high interest rate environment, carrying lower debt obligations on the books is a sound strategy to have.

Expenses were whittled down by an impressive 57 per cent to Dh66.8 million, from Dh155 million.

Our existing portfolio and assets under management (AuM) reflect our strategy to diversify and boost our recurring fee income

- Fawad Tariq Khan, Group CEO

"Our asset management strategy continuously seeks out new investment opportunities and creates investment products for our increasingly diversified investor base.

"Moreover, our investment banking segment has seen a significant uptick in performance, with a revenue increase of 25 per cent compared to H1-2022, and expectations to further strengthen our advisory capacity with our recent senior hires.”