Shuaa is feeling lucky
Investment bank bets on growth as economic wheel continues to spin.
January 10, 2011 2:01 by Samuel Potter
“Really, 2010 was a year for fixing and rebuilding at Shuaa, whether it’s strategy, whether it’s rebuilding the management team, whether it’s addressing the balance sheet and liquidity issues and so on,” chief exec Sameer al Ansari told the paper. The expansion is part of Shuaa’s recovery strategy. According to the report it handles around 5 percent of stock trades in the UAE, and with all these failed brokerages around and Shuaa still standing, it senses an opportunity to recruit customers and grab more of the market.
“It’s our expectation that more companies will exit the market within the space of the next six months, and that Shuaa Capital will be a prime consolidator during that period,” Walid Shihabi, the head of Shuaa Securities confirms. But the company will be desperately hoping to see growing trading volumes across the market after that period, otherwise there’s a risk it may simply have added more overheads without gaining much in extra revenue.
Whether driven by desperation or opportunism, anyone prepared to put his chips on the table for a spin of the wheel gets the thumbs up from Kipp. Not that we’re advocating gambling, of course.
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