Shuaa Capital , the investment banks has seen gains and profit for the third quarter. This is the result of the gains that the bank has seen in its investment banking business. It posted a profit of 0.2 million dirhams, which may sound very small but is substantial because till now the bank had been facing a loss of 269.26 million dirhams during the same period last year.
The economic growth rate of Dubai, reeling under pressure due to slowdown and Dubai World crisis, is likely to shrink second year in a row in 2010, according to a report titled 'UAE Vision 2010', published by a leading city-based investment bank Shuaa Capital.
However, overall economic prospectus may improve this year and Dubai is expected to register an economic growth rate of 2.5 per cent.
In the report of Shuaa Capital for August, Investor Confidence Index of the UAE index gained 4.3 per cent, up 118.8 points.
Shuaa Capital stated, "Driving the UAE Index this month was improving sentiment towards the current state of the UAE economy."
During August, the GCC investor confidence index rose 2.7 per cent to 126.3, after a fall, earlier, in the confidence index.
As per the media reports, an approval from the concerned authorities has been won by SHUAA Capital, the GCC's leading financial services institution, which has also urged the Dubai Financial Market to issue 515 million new shares to Dubai Banking Group.
The recent development has come to scene after the agreement regarding the convertible bonds issued by SHUAA to Dubai Banking Group. Under the agreement, Dubai Banking Group will convert the AED 1,500 million convertible notes into 515 million shares, representing a 48.4 per cent stake of SHUAA Capital's share capital.
Seven weeks after Shuaa Captial settled a bond dispute with Dubai Banking Group, the UAE's biggest investment bank Chief Executive Officer Iyad Duwaji has submitted his resignation.
Wednesday, Dubai-based Shuaa said in an e-mailed statement that it was for some personal reasons that Duwaji resigned, after more than a decade at the helm of affairs. But he will stay as CEO until and unless a successor is selected and will also continue to be a board member.
It was revealed by Dubai Banking Group (DBG) on Tuesday that in order to recover the capital it invested in a $409 million bond that Shuaa redeemed by issuing shares, it has initiated legal proceedings against Shuaa Capital.
However, the investment bank Shuaa Capital said that it does not accept the claim that any amounts are due to DBG since it has already exercised its contractual option to redeem the bonds by issuing 250 million new shares.
Sunday saw Dubai-based investment bank Shuaa Capital announcing that since a $409 million bond conversion dispute it has with Dubai Banking Group is a legal matter, regulators should avoid intervening in it.
Shuaa pointed to several questions which "required very careful consideration" and had to be addressed as "matters of law and public policy," in a letter to the UAE's bourse watchdog Emirates Securities & Commodities Authority (ESCA) posted on the Dubai bourse website.