SHUAA Capital in MoU for investment banking services in Indonesia (By IFN)

SHUAA Capital in MoU for investment banking services in Indonesia

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UAE: After reporting four straight years of losses and undergoing a restructuring involving a series of job cuts and plans to apply for an Islamic banking license, SHUAA Capital appears on a firm path to recovery with an announcement it is extending its business to Indonesia. It signed an MoU with Pratama Capital Indonesia on the 5th December 2012, in an agreement that will enable the firms to collaborate on investment banking services for issuers and investors in Indonesia and the UAE. Sheikh Maktoum Hasher Al Maktoum, CEO of SHUAA, noted that the agreement marks the firm’s debut in Southeast Asia and could, in turn, facilitate more cross-border capital flows between the two countries. The expansion also marks a turning point for the company, with its expansion into the world’s most populous Muslim nation potentially creating a catalyst for its growth in Islamic banking. The company reported a full year loss of AED293.8 million (US$79.97 million) for the year ended 31st December 2011, up 31% from the previous year; after which it restructured its asset management, advisory and credit divisions and implemented a downsizing program in which it slashed its staff count by 60%. SHUAA’s financials have since gotten back on track, with the bank reporting a year-on-year growth of 114% to AED34.9 million (US$9.5 million) in the third quarter of this year. While 2012 did not start off with a bang for SHUAA, its new business strategy and expansion into Indonesia may see the bank ushering in better times ahead.