Shuaa’s top shareholder Jassim Alseddiqi to cut stake and step down as MD

Jassim Alseddiqi, one of the top shareholders in Shuaa Capital, is stepping down as the managing director as he repositions his stake in the Dubai-listed investment banking and asset management company.

Without divulging details of how much stake he currently holds in Shuaa and what percentage of that he is selling, Mr Alseddiqi said in a LinkedIn post it is a significant change that will make way for new shareholders in the company that manages $5 billion in assets.

“In line with this transition and my evolving direction and endeavours, I’ve decided to reposition my stake in Shuaa Capital, paving the way for new shareholders,” he said in a message to the company employees on LinkedIn.

“While this is a significant change, it is not a goodbye. I look forward to remaining connected with you all, albeit in a different capacity.”

Shuaa announced Mr Alseddiqi’s resignation as the board member in a filing to the Dubai Financial Market on Monday, but did not give details of change in the company’s ownership structure.

A company spokesman declined to comment further on the announcement.

Shareholders, other than Mr Alseddiqi, are also in early talks to sell down their stakes in the company, giving investors a chance to own a piece of one of the Gulf region’s oldest financial institution, Bloomberg said, citing sources.

Shareholders, including Mr Alseddiqi, collectively control more than 50 per cent of Shuaa’s shares and are in talks with several potential advisers, including Lazard, according to the report.

A serial entrepreneur, Mr Alseddiqi has interests in financial services, technology and real estate sector business.

He founded Abu Dhabi Financial Group and in 2019 led the complex reverse merger between Shuaa and ADFG to create a business with both an asset management and investment banking platform to diversify its revenue streams.

Mr Alseddiqi became chief executive of the merged entity. However, in June last year, he handed the reins of Shuaa Capital to Fawad Khan and took a board position and became the bank’s managing director.

In 2021, Mr Alseddiqi increased his stake in the company when he, along with other investors, bought about 58 million shares of Shuaa from Shine Investments in Commercial Projects.

The transaction pushed Mr Alseddiqi ‘s direct stake in the company to nearly 30 per cent, making him the single biggest shareholder in the company.

Established in 1979, Shuaa evolved to become one of the main regional investment banks and worked on major transactions including the $5 billion initial public offering of global ports operator DP World in 2007.

Over the past several years, the company has gone through a structural transformation and management reshuffles. At its peak, it managed more $13 billion in assets.

The bank is now rebuilding its investment banking business and is expanding its asset base.

Shuaa aims to double its assets under management to $10 billion in the next five years and is evaluating several investment deals across the broader GCC, chief executive Mr Khan told The National in an interview last week.

The company is looking at potential investment opportunities, particularly in Saudi Arabia and the UAE, the Arab world’s two largest economies, including deals in the real estate and hospitality sectors, he said at the time.

The investment manager is also looking at divestment options, including public listings, as well as partial exits through strategic investors, for its portfolio companies as it continues to evolve and reshape its asset base, Mr Khan added.

Updated: August 14, 2023, 12:07 PM