Dubai – Mubasher: SHUAA Capital achieved AED 50.8 million ($13.8 million) losses in the second quarter of 2016 against AED 1.7 million ($462,000) profits in the same period of the previous year.
Total revenues retreated 25.3% to AED 44.6 million in Q2-16 from AED 59.7 million in Q2-15, according to a bourse filing on Saturday.
The fall in net profits was attributed to AED 56.9 million provisions allocated to cover the losses of bad debts of Gulf Finance Corp.
Abdulrahman Al Hareb, chairman of SHUAA Group, said that continuous turbulences in global markets, especially the decline in oil prices, contributed to the losses of the company.
Gulf Finance Corp. recorded AED 34.6 million revenues in Q2-16 compared to AED 38.4 million in Q2-15, while SHUAA Asset Management Ltd. achieved a growth in profits to AED 2.4 million from AED 1.4 million during the same period.
The company pointed that there are two hotel projects in Saudi Arabia that are being developed by SHUAA and they are expected to be inaugurated by the second half of 2016.
