Thursday, 13 August 2009 at 09:13
The outgoing chief executive of Shuaa Capital on Wednesday said he expects the investment bank to be profitable in the third quarter and that he plans to set up a private equity firm to tap Gulf markets.
Earlier Wednesday, the Dubai-based investment bank said Iyad Duwaji is stepping down after 14 years as CEO, but that he would remain at the helm of the company until a successor is found.
"I think we'd like to build on the trends of the last quarter and remain in the black, the indication is that we shall be," Iyad Duwaji told Reuters by telephone.
Duwaiji will remain as a member of the company's board of directors, the bank said.
The private equity firm "will build on what I've always been passionate about, which is the vast potential of the markets in the GCC," the 48-year old executive said. He declined to offer more details until his succession at Shuaa Capital is finalised.
Duwaji said his decision to leave was a personal one and was "absolutely" not on demand of Shuaa Capital.
Duwaji's resignation caps a tumultuous period for Shuaa, during which it posted losses and was embroiled in a legal tug-of-war with Dubai Banking Group, its biggest shareholder now. Shuaa Capital this month posted a net profit, helped by a recovery in the markets, after three loss-making quarters.
HSBC raised Shuaa's price target to Dh1.90 from Dh1 on August 6. Shuaa's stock closed 3.64 per cent down to Dh1.59 in line with a general decline on the Dubai Financial Market.
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