Shuaa gathers itself after rollercoaster

Shuaa Capital, the United Arab Emirates’ largest investment bank, has a history that mirrors the rollercoaster ride experienced by Dubai, its home base, over the past 10 years.

Formed in 1979 as an investment company called Arabian General Investment Corporation, it was set up to encourage intra-Arab investment. Then, at the turn of the millennium, Shuaa developed into a fully fledged brokerage and finally investment bank.

But just as Dubai’s frenetic growth was achieved without the steadying hand of regulation and co-ordination, as is becoming clear from its current travails, so Shuaa’s star has fallen. From a peak of almost Dh9 in June 2008, its shares fell to below Dh1 this year before rallying to about Dh2 now.