Shuaa had opted to simplify its balance-sheet through deconsolidation of Dh2 billion in assets. Image Credit: Shutterstock

Dubai: The Dubai investment firm Shuaa Capital slipped into a Dh135 million loss for 2022, in large part brought on by one-charges it had taken during the first-half of the year. Revenues were at Dh265.9 million from 2021’s Dh322.7 million.

The company in fact had been reworking its portfolio to give a more simplified feel to the balance-sheet. This meant ‘de-consolidation’ of nearly Dh2 billion in assets to reduce volatility of earnings in future and creating a simplified capital structure for the group.

The Q4-22 numbers reflect some of the work put in, with Dh135 million in EBITDA against a loss of Dh54.7 million a year before. This reflects an ‘improving performance in underlying core operations, recurring revenue and cost-discipline measures implemented,” said Shuaa in a statement.

The debt-to-equity ratio improved to 106 per cent (vs. 134 per cent in FY2021), from about Dh200 million debt in repayments during the year and deconsolidation of Dh2 billion of non-recourse liabilities.

Fawad Tariq Khan, Group CEO, said: “2022 was a crucial year for Shuaa. We executed on a plan for a simpler, more focused financial services firm, built around client needs and innovative investments. We remain committed to our core mission and building on our leading franchise in the Middle East to grow our business and deliver significant value creation for our clients and shareholders.”

In Q4-22, the firm launched three Sharia-compliant funds, bringing assets under management on a platform managed by Shuaa GMC Ltd, to $230 million. With this launch, the ICC umbrella now offers five funds.

There was also the launch of ‘Ocean House’, a waterfront project on Palm Jumeirah.