Shuaa Capital, a leading financial institution, said yesterday that it had received approval from the Saudi Arabian Capital Markets Authority to commence operations in the Kingdom and plans to manage a Shariah-compliant $550 million (Dh2.08bn) hospitality fund to build 5,500 hotel rooms across the country.
Shuaa Capital Saudi Arabia, the Saudi Arabian subsidiary of Shuaa Capital, is a closed joint stock company with a paid-up capital of SR150 million (Dh145m). Shuaa Capital holds 60 per cent stake, with the remaining 40 per cent divided equally among prominent Saudi business groups.
The company is licensed to conduct all investment banking activities, including asset management, advisory, raising of capital, corporate finance, private equity, underwriting as well as custody services and has already applied for a licence to perform dealing as agents. The company’s head office is located in Riyadh and it expects to open additional offices in the Western and Eastern regions of the Kingdom.
Iyad Duwaji, Chief Executive Officer of Dubai-based Shuaa Capital, said: “Shuaa Capital’s strong roots in the GCC span nearly 30 years. We see strong growth opportunities for the Kingdom of Saudi Arabia and for Shuaa Capital. Our Saudi Arabian operations, together with our regional presence across the GCC and Arab world, will expand our ability to offer our clients advanced financial services – both locally and internationally.”
Omar Al Jaroudi, CEO of Shuaa Capital Saudi Arabia, said: “We are dedicated to serve the growing needs of issuers, intermediaries and investors in the Kingdom. Saudi Arabia will be an important part of Shuaa Capital’s future and we can now provide the full spectrum of investment banking activities, manage investment funds and client portfolios, custody services and assume financial and corporate advisory services, as well as cross-border mergers and acquisitions.”
Shuaa Capital’s Dubai-based equity research team covers 45 per cent of the market capitalisation of the Saudi market and aims to increase its research coverage to 70 per cent. In June 2007, Shuaa Capital launched the Saudi Gateway fund which provides non-Saudi investors access to all listed companies in the kingdom.
“Shuaa Capital will leverage the expertise and experience of its various business lines to play a significant role in Saudi,” Jaroudi said.
Shuaa gets licence for Saudi operations