Q2 net for Shuaa Capital rises 37 pct on investments

A 37 percent rise in second-quarter net profit was reported by Shuaa Capital, in spite of the losses at its investment banking unit, as its assets have regained in value.

The Dubai-based bank said that in the second quarter of 2009, the net profit for the quarter has increased to 91.7 million dirhams ($24.97 million) from 67.1 million dirhams in the same quarter last year.

Duwaji said: "The financial industry is a cyclical one and the downturn in this cycle has been the most severe in the past 80 years."

He further said: "Shuaa attributed the increase in profits to positive effects on net income from investment securities of 95.8 million dirhams compared to 17.4 million dirhams during the second quarter of last year."

A loss of 2.38 million dirhams has been posted by Shuaa's investment banking subsidiary, which indicates a very quiet period for primary issuance across equity markets, the division's principal business line.

Shuaa is active in private equity, brokerage, asset management and financing too.

Duwaji said: "We also continue to believe in the market opportunity the GCC region represents -- both in the short and in the long term."