Shuaa cuts 21 jobs, profit expected in 2009

Staff affected representing 9% of Dubai-based employees are from across the business with the majority being in middle and back office positions and from non fee-based businesses.

Iyad Duwaji, Chief Executive Officer, Shuaa Capital, said:

"Our approach to managing our expenses is driven by the reality imposed on us from external market conditions and how we see our businesses performing next year. We have a clear plan that reallocates resources to areas where we see demand in 2009, such as the Kingdom of Saudi Arabia and Qatar, and increasing our market share in brokerage and asset management."

"The reduction and reallocation of staff will have no impact for our clients. I want to reemphasise that Shuaa Capital is a well capitalised company with Dhs3bn in shareholder equity as of the end of September 2008 and a very low leverage ratio," continued Mr Duwaji. "Our well recognised brand, 30 years of operating history, regional diversification and strong connections with both investors and businesses across the GCC will help develop our market leading position and ensure we remain a successful business even during hard economic times."

Michael Burgess, Chief Financial Officer, Shuaa Capital, said: "We maintain a strong and solvent financial position, we are liquid and we will be profitable in 2009. We want to be entirely transparent to the market, so that our clients, employees and shareholders understand how we will manage our business going forward. These staff reductions are all part of our commitment to manage our cost base closely, including reducing our other administrative expenses where appropriate. Shuaa is well positioned to weather the financial crisis and focus on growth opportunities next year while remaining profitable in its core businesses."