SHUAA Capital reports strong growth and momentum with net profit up 53% for fiscal 2007

The excellent outcome to the year with record results was driven by all business lines performing well in upbeat markets.

The Board of Directors of SHUAA Capital has proposed a cash dividend of 45% of the nominal value of shares (Dhs0.45 per share) which is subject to approval at the upcoming Annual General Meeting.

Year end operating income increased by 83.3% to Dhs710.8m (2006/7: Dhs387.7m), an increase of Dhs323.0m and net profit rose by 53% to Dhs400.5m (2006/7: Dhs261.8m), an increase of Dhs138.7m year on year.

Mr. Majid Saif Al Ghurair, Chairman of SHUAA Capital said: "Our year end results clearly demonstrate that we are delivering on our promise to shareholders. More importantly, we have achieved both scale and momentum across our regional business. We are especially proud that in IPOs our investment banking division ranked number 1 in the UAE, number 2 in the GCC, and number 18 globally during fiscal 2007".

Mr. Iyad Duwaji, Chief Executive Officer of SHUAA Capital commented: "The excellent outcome to this year was driven by marked progress over all the markets and client segments we serve. Each of our six business divisions maintains leadership positions in their field and we have built greater presence across the region. We have further strengthened our financial resources during the year with the issuance of $456m of convertible bonds, and are extremely well placed to further capitalize on the tremendous opportunities that GCC markets offer. We are increasingly attracting the attention of both regional and global institutional investors".

SHUAA's results were driven by a solid performance during all four quarters. During the first quarter, SHUAA produced operating income of Dhs144.9m and net profit of Dhs74.5m.

In the second quarter, operating income was Dhs89.7m and net profit was Dhs54.0m.

The third quarter was exceptional and we generated operating income of Dhs368.5m and net profit of Dhs213.0m.

The third quarter was driven primarily by contributions of asset management performance fees, equity capital market activity, record brokerage trading volumes as well as a divestment in our private equity division and healthy returns on our principal investments portfolio, seeing the highest quarterly return in the company's near thirty year history.

The fourth quarter resulted in operating income of Dhs107.7m and net profit of Dhs58.9m while markets were more challenging.

During the year, client's funds under management increased 117.3% to Dhs14.23bn (2006/7: Dhs6.55bn) helped by the strong international investor appetite for our regional products and services, primarily asset management, brokerage and private equity.

"SHUAA's stated aim is to be the premier financial services institution in the GCC region that specializes in managing the growing inflow of capital to our markets. We have pioneered the idea of the GCC as an asset class and as a destination of capital since 1998, and we remain passionate about it. Our vision has been endorsed already and we are closer than ever to being recognized as an integral part of the BRIC growth story". Mr. Duwaji concluded: "We will also remain at the vanguard of regional integration of the GCC into the global capital markets universe and SHUAA's share is in fact a great proxy on this growth story".