Shuaa net profit surges to Dh4.9m

Shuaa Capital's net profit for the first quarter ending June 30, 2002, surged to Dh4.9 million from Dh1.1 million during the corresponding period last year.

The total revenues of the company improved 26.6 per cent to Dh13.4 million compared with that of the same period last year.

"Our success in the first three months is evident also from the fact that assets during this period increased from Dh530 million to Dh567 million, representing a 7 per cent growth," said Majid Saif Al Ghurair, chairman of Shuaa Capital.

Off-balance sheet revenues have also registered an improvement of 215 per cent to reach Dh1.4 million from Dh400,000. Al Ghurair commented that the first quarter performance of the company is very encouraging against the backdrop of the worldwide economic turmoil.

"Our focused and disciplined strategy, and our commitment to undertake quality deals were central in posting results in line with our projected plan," Al Ghurair added.

Commenting on the future plans, the CEO of Shuaa Capital, Iyad Dawaji said that in spite of continued uncertainty in global capital markets as a result of a weakening U.S. economy, Shuaa sees selective investment opportunities in fixed income securities, namely bonds an continued upside potential in some GCC markets most notably the UAE.

According to him, the GCC equity market, in particular, has played an important role in helping Shuaa Capital register positive first quarter results.

Dawaji also said that the company is currently working on a number of mandates and is confident that it should continue to undertake complex transactions such as the acquisition finance arranged for Rasmalah buyout fund in the Aramex International acquisition deal.