Wednesday 14 February 2024

Shuaa Capital’s 2023 net loss widens to $236mln

Shuaa Capital’s 2023 net loss widens to $236mln

Dubai-based investment bank Shuaa Capital said net loss widened to 866 million dirhams ($235.78 million) in 2023 from AED 135 million in 2022, primarily due to non-cash impairments related to legacy assets and goodwill.

Total operating revenue rose 34% year-on-year (YoY) to AED 165 million last year, driven by growth within core business areas, particularly in asset management, the company said in a statement to the Dubai Financial Market on Wednesday.

Net loss stood at AED 296 million for the fourth quarter of 2023 due to significant non-cash impairment of legacy assets worth AED 128 million and one-off charges of AED 124 million.

Currently, Shuaa is negotiating agreements with its creditors and securing essential regulatory approvals to convene a shareholders’ general assembly over the coming few weeks, the statement said.

The agenda includes seeking approval for a reduction in share capital and a subsequent capital increase aimed at reducing leverage and bolstering its capital base.

The company aims to complete the process by June 2024.

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