Shuaa Capital, a Dubai investment bank hard hit by the global financial crisis, on Sunday said its fourth-quarter net loss narrowed as it cut costs and reduced non-core assets amid a shift in strategy.
Shuaa, which has laid off a third of its staff since 2011 and slashed operating costs, posted a quarterly net loss of Dhs20.7 million ($5.64 million), compared with a net loss of Dhs111.9 million a year earlier, it said in a bourse statement.
One of the Arab world’s largest investment banks and once a symbol of the sector’s potential in the region, Shuaa is among a group of regional investment firms struggling to stay afloat after a slump in the value of its investment portfolio.
The firm hired ex-ABN Amro banker Colin MacDonald as chief executive in April and is counting on the lending business as part of a turnaround plan under Chairman Sheikh Maktoum bin Hasher al-Maktoum, a member of Dubai’s ruling family.
Fourth-quarter revenue rose slightly to Dhs25.2 million from Dhs20.1 million a year earlier, Shuaa said.