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Q3 2009 Results

01 November 2009

SHUAA Capital, the region’s leading financial services institution, today reports results for the third quarter ended 30 September 2009. The profit from operations was AED 32.3 million (USD $8.8m) in the quarter before investment impairment charges of AED 259 million (USD $70.6m) and provisions of AED 42.5 million (USD $11.6m). Third quarter 2009 operating income was negative AED 164.3 million, compared to a negative operating income of AED 332.1 million for the same period last year. Third quarter 2009 loss was AED 269.3 million compared to a loss of AED 438.2 million during the third quarter last year. The results reflect prudent provisioning as the firm reduces risks and recalibrates for 2010.

Mr. Majid Al Ghurair, Chairman of SHUAA Capital said: “While challenging market conditions persisted and reduced business activity over the summer months weighed on our results this quarter, we are seeing improved performance across our fee generating businesses. The brokerage business has managed to augment its market leading position, our finance business remains highly profitable, our private equity business has turned in solid results and our asset management business continues to generate returns despite negative industry trends.”

“During the quarter, we issued 515 million shares to Dubai Banking Group, following the resolution of the dispute with the convertible bond. This has removed the uncertainty curtailing our ability to conduct business as usual and we have now left behind the ‘distress’ scenario.”

Sameer Al Ansari, the new Chief Executive Officer of SHUAA Capital commented: “In order to sharpen SHUAA’s quality of earnings going forward, we have taken decisive steps to improve the balance sheet, significantly increase liquidity and eliminate further downside risks emanating from non-fee-generating businesses, as evidenced by the prudent approach to recognize impairment charges on associates, available for sale investments and investments held to maturity. This move has a short-term negative impact on the financial results of the quarter but will have a long-term positive impact on the future of the firm. We are re-focusing the firm’s efforts on the fee generating businesses and have engaged Bain & Company to help us formulate our future strategy against a changed regional landscape and new realities.”

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About SHUAA Capital psc: Since 1979, SHUAA Capital has played a prominent role in shaping the financial services landscape of the GCC and will continue to be at the vanguard of regional integration into global financial markets. SHUAA Capital maintains leadership positions in Investment Banking, Asset Management, Brokerage, Private Equity and Lending. Headquartered in Dubai, in the United Arab Emirates, SHUAA Capital has a regional presence with offices in Abu Dhabi, Riyadh, and Doha. Embedded in the dynamic economic environment of the Gulf Cooperation Council, SHUAA Capital provides a broad range of financial services to corporations, governments, institutional clients, and high net worth individuals.

For further information please contact:

Fanny Modin
Tel: +971 (4) 319 9874
fmodin@shuaa.com

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