The Chairman of Shuaa Capital says he expects the Dubai-based investment bank’s profits for the first nine months of 2006-2007 financial year to be about Dh340 million.
The nine-month figures put the company on course to end the financial year on March 31 with record earnings, beating 2005 when full-year profits reached Dh367m. Majid Saif Al Ghurair told Emirates Business that Shuaa would soon launch a Shariah-compliant $500m (Dh1.83bn) investment portfolio in the Saudi market that would focus on multi-category hotels, particularly four and five-star properties. They will not serve alcohol, he said.
Al Ghurair also revealed that Shuaa had signed a management agreement with the Rotana group in the UAE and said studies indicated there were significant opportunities in the Saudi hotel sector. He said the studies had highlighted investment opportunities in Saudi Arabia on back of rising demand.
Al Ghurair said the group had obtained a licence from the Saudi government to launch Shuaa Saudi Arabia with a capital of $150m. Shuaa will own the majority 60 per cent stake and the Saudi partners the balance.
In addition to his Shuaa role, Al Ghurair is Chairman of Al Ghurair Group, which he said was investing Dh500m to add three production lines at the Gulf Aluminum Factory in Dubai. The company recently began building a Dh150m aluminium plant in Qatar.
Al Ghurair said the real estate and industrial sectors were still attractive investment channels. He called for a strategy that took into account the market requirements as well as the availability of raw materials and energy.
Shuaa to invest Dh1.8bn in Saudi