Shuaa Capital PSC is, potentially, looking for a joint-venture to boost growth within the lending unit as the Dubai investment bank continues to rebuild after the financial crisis. The banking unit is aiming to boost lending to 1.4 billion dirhams ($381 million), which is almost double of the previous lending amount of 800 million dirhams.
Shuaa Capital PSC has finally seen returns in the last two quarters after recording losses since 2009. Chairman Sheikh Maktoum Hasher Al Maktoum will be looking for either partnership or debt sale options in order to raise capital to expand Shuaa’s business. Al Maktoum is aiming to achieve consistent profit through lending and asset management as the United Arab Emirate (U.A.E.) economy continues to gain acceleration. The acceleration in the U.A.E economy is largely due to real estate and increases in tourism, in turn the local stock exchanges are some of the best performing global.
Shuaa Capital’s stock has performed well, gaining 64 percent this year after reporting a third quarter profit of 3.62 million dirhams ($1 million). However, their lending business may be the subject of a takeover from local banks after a buyout by First Gulf Bank, an Abu Dhabi-based institution.
Shuaa’s other business models include investment banking that focuses on small- and mid-sized companies for M&A, advisory and capital-raising. AL Mktoum said “so we are working on smaller deals but more of them.”
This year, the Dubai Stock Exchange has seen a massive gain of 78 percent.