SHUAA Capital’s Journey from AGICO to UAE’s Premier Investment Platform

From its founding as the Arabian General Investment Corporation (AGICO) in 1979, SHUAA Capital has evolved into one of the most well-known names in asset management and investment banking in the Middle East. Formed by Emiri decree, the company was initially a regional investment vehicle with capital from Chambers of Commerce from the region, with a mandate for accelerating growth in the financial landscape of the Gulf. It was in 1984 that AGICO was listed on the Kuwait Stock Exchange-one of the first steps taken towards the widening influence in regional markets.

In the year 2000, SHUAA Capital marked another important milestone by listing on the Dubai Financial Market (DFM) to position itself as a listed company with increasing transparency and shareholder accountability. In the following year 2001, the company continued its rebranding efforts with the change of its name from AGICO to SHUAA Capital. “SHUAA” is an Arabic name which spurs the identity and signifies its adherence to the Arabian Gulf and its contribution towards promoting economic growth in the region.

Its efforts from 2003 through 2007 contributed significantly to the major regional companies’ IPOs such as Arabtec, Aramex, Petrofac, and Air Arabia, and it was recognized as a powerhouse in investment banking. By this time, the services continued expanding, with the company now establishing offices in Saudi Arabia, thereby pushing further its presence in the GCC region. The other flagship deal was the convertible bond issued to the Dubai Banking Group in 2007 for an amount of as massive as AED 1.5 billion. Yet another movement that laid emphasis on SHUAA’s aggressive approach to growth and capital acquisition.

However, similar to the rest of the financial houses, SHUAA was at rock bottom as well when the 2008 world financial crisis was being felt severely. It did an extreme restructuring exercise in 2010. Its then leader, Sheikh Maktoum Hasher Al Maktoum, reappraised all non-core assets and got out of them; rebuilt its balance sheet focusing only on it. Its cost structure had to be brought in line for it to be profitable in the future by closing down branches it did not need anymore and getting out of retail brokerage.

The restructuring efforts started to bear fruits since the firm made profits in 2013 and posted a net of AED 1.3 million for the quarter, which was a welcome turn of events. For the fiscal year 2014, the firm posted an annual net profit amounting to AED 2.8 million, as outlined below:

Undoubtedly, the most transformative moment of SHUAA came in 2019 when it merged with Abu Dhabi Financial Group, ADFG. Such a merge created a leading regional asset management and investment banking platform; SHUAA was then able to reap fully from the vast expertise and resources of ADFG. Tough market conditions coupled with geopolitical uncertainty notwithstanding, SHUAA was able to post a strong set of financials that year – EBITDA of AED 186 million and net profit of AED 47 million.

As part of this development and acquisition in new growth areas, SHUAA Capital introduced an unprecedented partnership in 2020 to benefit from the increasing demand in the citizenship-for-investment market. This resulted in a $118 million real estate fund in Montenegro, providing investors with the chance to gain citizenship through real estate investment, a sector with growing consideration worldwide.

Standing testament to adaptability and strategic foresight in the financial industry, SHUAA Capital has experienced a journey driven by innovation, restructuring, and expansion – in practice – through the strength and dedication of the group to provide value to its shareholders. Be it from the early days as AGICO or the current status of a leading-edge asset management and investment banking platform, SHUAA continues to be at the forefront of many of the UAE’s key financial milestones.

SHUAA’s history is proof of how an organization can be not only saved but also be made to flourish when invested in strategically by partnership and relentless investment in growth. With a future as bright as the expansion of their power, SHUAA Capital is steadfast in carving the leadership path for the financial sector of the vibrant nation of the UAE again, surpassing new heights of excellence and innovation.