Shuaa Capital In Merger Talks With Abu Dhabi Financial Group

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Shuaa has a market value of about $207 million and had assets of $575 million at the end of last year.

Dubai’s Shuaa Capital has commenced merger talks with an Abu Dhabi Financial Group (ADFG), joining a stream of mergers in the Gulf’s financial industry.

In a bourse filing, Shuaa Capital stated that each firm has formed a working group made up of senior executive management to review the commercial potential along with any legal as well as structural aspects of the transaction.

Consolidation among financial institutions in the Gulf has been picking up following lower oil prices. Some of the biggest banks in the UAE, Saudi Arabia and Kuwait are in the process of combining their operations.

The Dubai-based financial firm said that currently there is no certainty that discussions will result in a transaction.

ADFG, which together with its controlled entities manages more than $20 billion in assets, is the owner of Shine Investments Commercial Projects.

Additionally, Shine holds 48.4 per cent of Shuaa Capital and its Chairman Jassim Alseddiqui is the Chief Executive Officer of ADFG.