Shuaa reported a net loss of AED 570 mn in 9M 2023 primarily on the back of one-time, non-cash impairments related to legacy assets and goodwill. Net operating income improved sharply in the same period, rising to AED 33 mn from AED 4 mn a year ago on the back of both revenue growth and “cost-saving measures implemented in recent months,” the firm said in its earnings release.

The charges came as Shuaa pushed ahead with an ambitious turnaround plan, saying its “primary focus in the third quarter of 2023 has been addressing legacy issues and completing its previously announced capital optimisation process.” The company wants to shore-up its balance sheet with a capital reduction and then a capital increase via a rights issue. At the same time, it’s looking to focus on core businesses.

Shuaa is now in talks with creditors and the regulator to move ahead with the next stage of its restructuring. The capital optimization plan includes the extension of a USD 150 mn special purpose vehicle bond.

The firm’s asset management unit reported a 17% increase in fee-earning AUM, while the investment banking division lined up new mandates.

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