Shuaa Capital reverses 2009 Q3 loss

Shuaa Capital, the Dubai-based investment bank, broke even in the last quarter, despite reduced activity in its securities brokerage during Ramadan which damaged overall business.

The bank squeaked out profits of Dh180,000 (US$49,000), compared with a net loss of Dh269.7 million ($73.4m) in the same period the previous year.

In a statement, Majid Al Ghurair, the chairman of Shuaa Capital said: "Recording a profit, albeit small, is an important achievement in an extremely challenging environment characterized by the lowest market activity since 2004."

The turnaround was driven by a reversal of losses from "other investments, including investments in third party associates", which turned a profit of Dh6.2m this quarter, up from a loss of Dh254m in the same quarter the previous year.

A spokesperson for the bank was not immediately able to provide clarification on what this sum reflected.

Shuaa Capital has made a loss during five out of the previous eight quarters.