Stock - Shuaa new
Shuaa Capital's Q3-22 numbers are solid, with profit of Dh80.27 million. What will be a boost is the increase in fund inflows during the period. Image Credit: Supplied

Dubai: Shuaa Capital, the Dubai based fund manager, recorded Dh112.27 million in losses for the first nine months of 2022, against a profit of Dh106.53 million a year ago. The number drop was brought on by a Dh123.86 million hit Shuaa took from a discontinued operation.

"Despite the prolonged global market volatility, our core operating business remained resilient and delivered another strong set of recurring revenues across all business segments,” said Fawad Tariq Khan, Group CEO. “We remain committed to providing pioneering investment solutions to our clients, as evidenced by the project completion of The Broadway (its prime residential project in London) and the increase in the number of managed funds our clients have access to with the recent addition of $220 million in new assets under management in the third quarter.”

Shuaa – which recently confirmed a greater role in GCC-wide real estate development through Northacre – had an operating income of Dh215.58 million in these nine months, a drop on the Dh242.29 million from 2021.

The company said recurring revenues ‘continue to build a stable moat and cost optimization measures taken earlier starting to improve profitability’.

Better tidings from Q3-22

What will please the company immensely is the third quarter numbers, when it generated recurring revenues of Dh60 million. Also, the Group’s asset management operations delivered a 'healthy' Dh31 million in revenues, 'driven by the strong contribution from fee earning AuM within real estate as well as managed public and private market funds'.

The investment banking business provided revenues of Dh5 million from higher advisory and trading income compared to the second quarter. Plus, there was the real estate side of things - "Northacre recently announced project completion of The Broadway, a $1.5 billion residential and mixed-use development with unrivalled views across Westminster and St James’s Park in London," Shuaa said.

"Revenues from our corporate segment remained robust at Dh24 million amidst prolonged market volatility. In line with our strategy of divesting non-core assets, we expect revenues from the corporate segment to run off in the coming quarters."