Middle-east Arab News Opinion | Asharq Al-awsat

Dubai's Shuaa Profit Surges on DP World IPO, Assets - ASHARQ AL-AWSAT English Archive
Select Page

DUBAI,(Reuters) – Shuaa Capital, the Dubai-based investment bank which helped arrange the $5 billion DP World IPO, posted a record quarterly profit on higher revenue from its investment banking and asset management business.

Net income in the three months to Dec. 31 rose more than four-fold to 213.02 million dirhams ($58 million), almost twice as much as its previous record, the 29-year-old investment bank said in a statement on Wednesday.

Third-quarter revenue jumped 310 percent to 394 million dirhams, it said. Shuaa’s fiscal year begins on April 1.

“It’s partly linked to that,” Chief Operating Officer Kerim Mitri told Reuters of the profit surge and the DP World initial public offering (IPO), the Middle East’s biggest.

“But a lot of other businesses contributed significantly to the bottom line,” he said.

A recovery in Gulf Arab stock markets, where Shuaa invests about 60 percent of its clients’ money, boosted asset management income in the last quarter of the year, the bank said.

Assets under management more than doubled to 15.58 billion dirhams at Dec. 31, compared with just under 6 billion a year earlier “reflecting the strong stock market recovery and asset gathering during the period, especially into the new Saudi Gateway Fund,” the bank said.

Saudi Arabia’s main index .SASI surged about 44 percent during the final three months of 2007, recovering some of its 2006 losses when it lost more than half its value.

The DP World IPO closed in November. Dubai Islamic Bank unit Millennium Capital, Deustche Bank AG and Merrill Lynch & Co were the other arrangers.

Fees and commissions are Shuaa’s biggest source of revenue, after income from investment securities.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

More Posts

Follow Me:
FacebookGoogle PlusYouTube