Shuaa Capital Reports $72m Profit For Q2

Shuaa Capital reported a net profit of AED267 million ($72m) for Q2, and a profit of AED5m ($1.3m) for the first half of 2020, despite the impact of Covid-19. 

Shuaa said its operating businesses, asset management and investment banking showed a strong recovery in profitability in Q2.

"We managed to remain profitable in the first six months of 2020 on the back of the dedication and commitment of our employees to continue on our strategic agenda," said Jassim Alseddiqi, CEO of Shuaa Capital. 

"Whilst Covid-19 as well as the economic and geopolitical challenges will continue to impact overall business and market activity for some time, our business model is calibrated around seizing opportunities across economic cycles, geographies and products," he added. 

The company reported an operating income of AED86 million in Q2-2020, while assests under management reached $13 billion at the end of Q2-2020, up from $12.8 billion in the previous quarter. 

"Our pipeline of investment banking mandates has strengthened, and the launch of scalable new investment funds has commenced," Alseddiqi said. 

Shuaa said it managed to downsize its non-strategic assets, achieving a 38% reduction in its non-core asset unit (NCU) since July 2019 to date, and releasing in excess of AED 128 million of cash through exits.