Saudi operations help to grow Shuaa earnings

Shuaa Capital has expanded operations in Saudi Arabia. (Supplied)
Updated 06 November 2018
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Saudi operations help to grow Shuaa earnings

  • Highest quarterly profit since 2008
  • Deal struck with Jabal Omar Development

LONDON: Dubai-headquartered investment house Shuaa Capital has posted its highest quarterly profit since 2008 as it continues to expand its operations in Saudi Arabia, UAE and Kuwait.
The company reported a 30.1 million dirham ($8.2 million) net profit for the third quarter this year, a 31 percent increase year-on-year, according to a filing on the Dubai stock exchange.
Year-to-date net profit stood at 56.4 million dirhams, slightly down on the 59.8 million dirhams recorded in the same period in 2017.
The increased profit has been driven by growth in the company’s asset management arm which oversees the development of real estate projects in Saudi Arabia and the UAE. The division reported a 8.5 million dirham profit in the third quarter, a 35 percent increase on the previous year.
Shuaa expanded its presence in Saudi Arabia earlier this year, signing a preliminary deal with the Saudi real estate developer Jabal Omar Development Company to jointly manage real estate investment funds in the Kingdom.
Jabal Omar’s existing flagship development is in Makkah, just walking distance from the Grand Mosque. Set to be delivered in phases, the project will feature high-rise towers, luxury apartments, residential units and shopping malls.
The investment house also worked with the hotel management firm Rotana on the Centro Waha Riyadh hotel which opened in the Saudi capital city in October last year. The hospitality project was funded by the Shariah-compliant Shuaa Saudi Hospitality Fund I.
Kuwait is another target market for the firm, said Shuaa chief executive Fawad Tariq-Khan, in a DFM statement, saying the company will build on its acquisition of Amwal International Investment Company and its subsidiary Noor Capital Markets, which was first announced in July 2017.
“Our recent acquisition of Amwal International Investment Company in Kuwait, and intended business affiliations are meant to help us benefit from synergies and capture inbound and outbound business prospects,” he said.
“Activating these investments and partnerships is imminent, and we expect the final quarter to be another game changing quarter for the group,” he said.
This quarter’s results continue the growth seen in the second quarter where profits rose by 21 percent to reach 14.6 million dirhams.
However, Shuaa’s profits more than halved in the first quarter compared to 2017, a decline which Shuaa’s management partly blamed on lower interest income from its lending arm following a reduction in bank debt at its lending subsidiary, Gulf Finance Corporation.


Oil prices edge up as OPEC says its crude output fell sharply in December

Updated 18 January 2019
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Oil prices edge up as OPEC says its crude output fell sharply in December

  • OPEC cut oil output sharply in December before a new accord to limit supply took effect on Jan. 1

SYDNEY, Australia: US oil prices inched higher on Friday after a report from the Organization of the Petroleum Exporting Countries showed its production fell sharply last month, easing fears about prolonged oversupply.
US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel at 0026 GMT, up 32 cents, or 0.6 percent, from their last settlement. WTI futures closed down 0.4 percent on Thursday.
International Brent crude oil futures had yet to trade, after closing up 1.1 percent in the previous session.
OPEC cut oil output sharply in December before a new accord to limit supply took effect on Jan. 1, it said on Thursday, suggesting that producers have made a strong start to averting a glut in 2019 as a slowing economy curbs demand.
“The OPEC+ production cuts (that stared this month) will be paramount to keeping the market tight and supporting prices,” ANZ said in a research note. The body is making cuts along with other major producers such as Russia.
OPEC said in its monthly report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in almost two years.
But tempering that support for prices, OPEC also cut its forecast for average daily demand for its crude in 2019 to 30.83 million barrels, down 910,000 bpd from the 2018 average.