Seeking AED260m
Earlier dispute dismissed
Investment bank and asset manager Shuaa Capital has filed a lawsuit against former executive managers, seeking approximately $71 million (AED 260 million) in compensation for alleged misconduct that the company claims contributed to its financial losses.
The legal action, disclosed in a filing to the Dubai Financial Market, is part of Dubai-based Shuaa’s broader efforts to protect shareholder interests following an internal review of past management decisions. The company did not name the executives involved or provide specific details of the alleged violations.
Shuaa was founded in 1979 and was once among Dubai’s most prominent investment banks but has undergone a series of mergers, management changes and divestments in recent years.
Shuaa has reported a significant financial turnaround. After posting a net loss of AED299 million in 2024, down from a close to 1 billion dirham loss in 2023, the company announced a net profit of AED196 million for the first quarter of 2025. The return to profitability is attributed to successful restructuring efforts, including cost optimisation and impairment of legacy assets.
As part of its capital optimisation strategy, Shuaa issued convertible bonds totaling AED274 million to existing noteholders and secured an additional AED85 million from new investors. These bonds are set to convert into equity at AED0.32 per share upon regulatory approval.
The company also reached an agreement with its senior creditor to restructure AED208 million in outstanding facilities, providing a 12-month waiver period and greater operational flexibility.
In a separate dispute last year, a former executive sued Shuaa for AED 22 million ($6 million) in alleged unpaid dues. Shuaa called the claim “baseless” in a filing and said it would have no financial impact. A Dubai court dismissed the case in February.
Shuaa had said then that it was in the final stages of preparing its own litigation proceedings against the former executive.
While Shuaa did not name the executive, a June 2024 shareholder vote did not “absolve” Jassim AlSeddiqi – the firm’s former CEO, managing director, and largest individual shareholder – for the 2023 financial year.
Alseddiqi resigned from Shuaa in 2023 and stepped down from various board and chairman roles including at Eshraq Investments, a property and private equity company, Dana Gas, a prominent local energy company, and Salama, an Islamic insurance company.
