SHUAA Capital PSC, a prominent asset management and investment banking platform based in the United Arab Emirates, has reported significant losses for the first quarter of 2025. The accumulated losses amount to AED 932 million, representing a 25.47% loss to capital ratio. These losses are primarily attributed to fair value losses due to impairments on investments and goodwill, write-offs associated with legacy real estate assets, and valuation adjustments of the company’s associates.

The introduction of corporate tax law in the UAE also contributed to these losses, as SHUAA recognized a deferred tax liability. Additionally, the company faced fair value losses from its investments in public market securities and managed investments.

Despite these challenges, SHUAA Capital is optimistic about its future. The management is currently devising a comprehensive 5-year plan aimed at revamping the business for growth and value creation. This plan includes launching new investment funds and reactivating the investment banking platform through deal sourcing and securing new mandates. The company also plans to implement a lean operating structure to enhance cost efficiencies, which is expected to positively impact the bottom line.

Given the strategic initiatives SHUAA Capital is undertaking, the company's potential for recovery and growth appears promising. Investors should consider holding their positions as the company implements its new strategies. The long-term outlook, driven by innovative investment solutions and a focus on cost efficiency, suggests that SHUAA Capital is on a path to overcoming its current financial challenges.