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ENGINEERING
INVESTMENTS
1     SHUAA Annual Report 2021

02
At a Glance
04
Chairman’s Letter
05
Chief Executive’s Review
07
Business Model and Strategy
Integrated Business Model
08
Board of Directors
11
Senior Management Team
12
Our Mission and Strategy
13
15
Market Review
Market Review
16
Real Estate Market Focus
19
49
Corporate Governance
63
Risk Management
67
Sustainability
73
Consolidated Financial 
Statements
22
Business Segment Overview
Public Markets
23
Private Markets
27
Real Estate
31
Debt
44
Investment Banking
46
1     SHUAA Annual Report 2021

Our business philosophy is rooted in a drive for excellence and 
performance, uncompromising integrity and a strong team culture. 
Industry-Leading
Established and leading 
market position
Predictable
Recurring revenue 
streams 
Growing and Scalable 
Proven record 
of growth
Profitable 
Strong and steady 
margins
Diversified 
Unique product 
offering
Aligned
Large co-investor 
in our own vehicles 
One Company, Many Strengths
2     SHUAA Annual Report 2021

Growing Our Core Business
Through a disciplined investment approach 
across each of our business segments, we 
continue to focus on generating investor and 
shareholder value by engineering innovative 
investment solutions and differentiated 
product offerings for institutional clients and 
high net worth individuals. 
2021 Highlights
Key Segments
 Public Markets 
 Private Markets 
 Real Estate 
 Debt 
1 Attributable to shareholders 
2 Adjusted for one-off charges
AUM
USD 13.1 bn
Net Income¹
AED 24 m 
Adjusted Net Income2
AED 227 m 
EBITDA
AED 218 m 
Revenue
AED 394 m 
Adjusted EBITDA2
AED 421 m
Total Assets
AED 5.8 bn
 Open-Ended Funds 
 Closed-Ended Funds 
 Permanent Capital Vehicles 
 Discretionary Portfolios 
 Direct and Co-Investments 
 Corporate Finance Advisory 
 Advisory Portfolios 
 Sales and Trading 
Key Products & Services
 Investment Banking 
 Markets 
3     SHUAA Annual Report 2021

“It is with great pleasure that I 
present to you, on behalf of the 
Board of Directors, the annual 
report and consolidated financial 
statements of SHUAA Capital 
for the year ended December 31, 
2021. During the last year, the 
COVID-19 pandemic continued to 
have an effect on markets. Despite 
the uncertainty and volatility 
that shrouded the economic 
landscape, the company was able 
to build on the momentum and 
success of previous years and 
continued to grow, creating new 
opportunities and great value for 
our shareholders.”
Distinguished Shareholders, 
There were increased levels of 
optimism in the UAE during 2021, with 
major successes including the country’s 
launch of one of the best vaccination 
programs in the world and the increase 
in oil production levels, in parallel with 
the recovery of the tourism sector 
supported by the successful launch 
of Expo 2020 Dubai. The International 
Monetary Fund expects the growth 
rate of the UAE economy to rise from 
2.2% during 2021 to 3% in 2022, while 
the average growth between 2022 
and 2026 is expected to reach 3.3%, 
supported by the improvement in the 
performance of the oil and non-oil 
economy, macroeconomic stimulus 
policies, and the recovery of the tourism 
sector.
SHUAA’s core business remains resilient.  
Group revenue benefited from the 
strong performance of the Goldilocks 
flagship fund and an improving 
recurring revenue base throughout the 
year. 
The Group continued to make 
significant progress towards disposing 
of non-strategic assets during 2021, 
resulting in a significant cash return 
during the period. 
As part of its strategy to establish more 
permanent capital vehicles, SHUAA 
launched the ICC Fund Platform in 
Q4 2020, in part to help serve the 
Company’s insurance clients but also 
to enhance its products and service 
offerings with the right capabilities to 
meet the changing needs of clients. 
This platform has enabled SHUAA 
to become a key partner for insurers 
seeking higher and more consistent 
returns through diversification 
strategies that meet regulatory 
requirements.
SHUAA Capital has benefited from the 
national efforts exerted to support 
the economic renaissance, as the UAE 
has become a global and regional 
headquarters for more than 25% of the 
world’s 500 largest companies. The UAE 
has also become a global model for 
developing the business environment, 
enhancing the country’s attractiveness 
for investments, and creating an 
environment conducive to innovation 
which means that the UAE ranks highly 
on the Global Innovation Index, thanks 
to its strategic location, strong financial 
reserves, sovereign wealth funds, 
and government spending on major 
development projects.
 I would like to extend my sincere 
thanks to the shareholders for their 
continued support and confidence 
in our business. I would also like to 
express my appreciation to SHUAA 
management and its distinguished 
team, your contribution, dedication and 
hard work have played a prominent 
role in achieving the company’s 
achievements. I look forward to 
building on these successes and 
continuing this journey with you during 
the coming period.
 
Fadhel Alali
Chairman
4     SHUAA Annual Report 2021

“The year 2021 has been one 
of action. Rapid measures and 
visionary reforms introduced by 
the UAE government, along with a 
record-setting vaccination effort, 
has accelerated economic recovery 
in conditions of the new pandemic 
normal and kept our markets 
resilient and growing.
Coupled with the climb in oil prices 
and growth of the non-oil sector, 
it is safe to say that the nation’s 
economy had successfully surged 
beyond the COVID-19 crisis with 
clear signs of strong consumer and 
investor confidence.“
The year 2021 has been one of action. 
Rapid measures and visionary reforms 
introduced by the UAE government, 
along with a record-setting vaccination 
effort, has accelerated economic 
recovery in conditions of the new 
pandemic normal and kept our 
markets resilient and growing.
Coupled with the climb in oil prices 
and growth of the non-oil sector, it is 
safe to say that the nation’s economy 
had successfully surged beyond 
the COVID-19 crisis with clear signs 
of strong consumer and investor 
confidence.
At SHUAA too, we’ve remained in action 
mode, continuing to invest in and 
support companies with significant 
growth potential, while keeping the 
upside open with our involvement in 
special turnaround situations and other 
differentiated approaches to investing. 
In some ways, the pandemic 
has emboldened us to fast-track 
opportunities that are unique 
and future-robust. With our strong 
fundamentals in place, this has been 
a period of building on crisis-created 
opportunities while keeping our 
forward-looking strategies in focus.
Financial Performance: 
Sustained Growth in 
Profitability 
Our 2021 financial performance is a 
testament to the root resilience of our 
core business and reflects our strength 
in identifying, developing and growing 
new opportunities.
For the year ended 31 December 2021, 
net profit attributable to shareholders 
was AED 24 million, reflecting net one-
off charges of AED 203 million. On a 
like for like basis, excluding the impact 
of the accelerated restructuring of a 
legacy investment portfolio, net profit 
would have been AED 227 million.
While EBITDA also declined, from 
AED 349 million in FY 2020 to AED 218 
million in 2021 due to these valuation 
impairments, adjusting for the effect of 
the one-off adjustments it would have 
risen to AED 421 million. 
Operations: Strengthened 
Offering For Clients 
In 2021, SHUAA made key hires across 
the business, notably within real 
estate and client coverage, with core 
headcount increasing by 33%. As well 
as the internal promotion of two senior 
executives, announced in April, this 
ensured that the Group maintained its 
policy of targeted investment across 
both product and client relationship 
capabilities. 
The funds and managed portfolios we 
have launched have performed very well 
to date and the increased commitments 
signal strong confidence in SHUAA’s 
managed portfolios and fund offering. 
We hope to maintain and build on this 
trajectory of high performance and 
remain as ever committed to meeting 
investors’ increasing appetite for Sharia-
compliant investment products.
5     SHUAA Annual Report 2021

In 2021, SHUAA led and invested in 
transactions worth more than USD 500 
million, starting with the debt buyout of 
Stanford Marine Group (SMG) for AED 
1.13 billion (USD 308 million), that saved 
1,800 jobs and vessel exports worth 
millions.
We also invested in a Swiss pharma 
supply chain disruptor – SkyCell – via a 
Series C funding round that closed at 
CHF 32 million (USD 34.8 million).
During the first half of the year, the 
Group made further progress on its goal 
of exiting non-core assets as part of 
its overall strategy as well as ongoing 
work to deliver its plans for new funds 
and vehicles, which will support SHUAA’s 
revenue visibility going forward. The sale 
of 20% stake in Mirfa International Power 
and Water Company (MIPCO) and stake 
in Khaleeji Commercial Bank are both in 
line with this strategy and demonstrate 
a further milestone in the wind-down 
process of the Group’s non-core assets. 
This will allow SHUAA to focus on driving 
growth in its core business, making the 
platform more efficient and freeing up 
management capacity from non-core 
activities.
In January 2021, SHUAA led a funding 
round in Anghami, the leading music 
streaming service in the Middle East 
and North Africa. The investment saw 
SHUAA’s managed funds and co-
investors investing in the future growth 
of Anghami. We later acted as financial 
advisor in Anghami’s transaction that 
saw the music streaming platform 
agree to merge with a New York-listed 
Special Purpose Acquisition Company 
(SPAC), Vistas Media Acquisition 
Company Inc., and secure commitments 
totalling USD 40 million in private 
investment in public equity (PIPE).  
Following this agreement to merge, 
Anghami listed on NASDAQ in New York 
in February 2022. 
The Investment Banking team also 
actively advised our clients on 
investments in SPACs as well as a 
number of capital raising mandates. 
This underscores our unique capabilities 
in structuring financing solutions that 
meet both business objectives and 
growing investor demand for SPAC 
investments.
 2022 Goal:  Thriving and 
Helping Others Thrive 
As we reflect back on the successes 
of 2021 and enter 2022, we remain 
confident in the many and long-
term opportunities for our business. 
The road ahead will be exciting, but 
we need to be agile and continue 
finding new ways to grow the business 
and differentiate our offerings. Our 
signature has been thriving during and 
despite uncertain times and helping 
others thrive as well, which gives me 
confidence in the direction we are 
taking.
With our commitment to developing 
pioneering approaches to investment 
and value creation through a 
differentiated, innovative and globally 
sustainable product offering, SHUAA 
is well-positioned to bring new 
opportunities to the forefront. 
I would like to thank all of our team, our 
investors, partners and stakeholders 
for their unwavering support. We look 
forward to a positive outlook for growth 
in 2022 and remain confident that we 
will continue to deliver exceptional 
returns and create value for our 
investors in the year ahead.
Jassim Alseddiqi
Chief Executive Officer
6     SHUAA Annual Report 2021

BUSINESS 
MODEL AND 
STRATEGY
SHUAA has continued to progress during the year in broadening 
its clients offering and executing on its strategic agenda. The 
move towards the end of cleaning up legacy and non-core 
investments and portfolios has progressed well.  We will increase 
our focus on driving revenues and shareholder returns whilst 
maintaining a strict discipline on costs.
We are continually looking for new ways to meet the demand 
from both existing and new clients and we remain confident that 
the strategy we have put in place will provide the Group with 
numerous long-term opportunities for our business which will 
create value for our shareholders.
7     SHUAA Annual Report 2021

Long-standing 40+ year history and reputation as a leading platform in the region further enhanced 
through the merger with ADFG
1979
Arabian General 
Investment 
Corporation 
(AGICO) established 
in the UAE
2001
AGICO renamed 
SHUAA Capital PSC
2011
Incorporation 
of ADFG
2020
Established 
a dedicated 
Debt segment
2017
SHUAA refocuses on investment banking 
and capital markets businesses; expansion 
into Kuwait and Turkey
SHUAA’s best financial results since 2007
1984
AGICO listed on 
the Kuwaiti Stock 
Exchange
2008
Global financial 
crisis resulting 
in largest loss in 
SHUAA’s history
2016
ADFG acquisition of 
48.4% of SHUAA
2019
Merger of ADFG 
with SHUAA
Strong network 
facilitating deal flow 
between key 
markets
Supported by strong 
balance sheet and 
solid fundamentals 
post merger
Solid value drivers 
for continued and 
resilient growth
Strong presence 
across multiple 
regions
Valuable expertise 
across public and 
private markets, real 
estate, debt and 
investment banking
Leading asset management and 
investment banking platform in 
the MENA region
42 years of creating 
value and delivering 
sustainable returns
2021
Closure of non-core 
unit and expansion 
of Coverage team
8     SHUAA Annual Report 2021

Fixed Income
Equities
DPM
A unique and diversified platform and offering in the region
SHUAA provides investment opportunities across clearly defined segments
Asset Class & Segment Offering
Asset Management
Investment Philosophy
Private Markets
Private equity 
investments and funds
Debt
Specialist platform focused
on private debt and
alternative financing
Investment Management
Global execution,
brokerage and
custody services1
Public Markets
Publicly listed securities 
investments and funds
Markets
Sales & trading
platform primarily
focused on FICC
Banking
Strategic advisory services
and capital market
solutions
Real Estate
Vertically and horizontally 
integrated platform across
the value chain
Asset Class & Segment Offering
Products & Offerings
Open-Ended Funds
Value creation forms the foundation of our 
investment philosophy
Our opportunistic approach maximizes 
focus on optimal risk adjusted returns
Alignment of interest through complete 
transparency and trust
Bespoke Discretionary 
Portfolios
Closed-Ended Funds
Alternative
Debt & Financing
Investment Management & 
Custody Services1
M&A Advisory Services
Direct & Co-Investments
Capital Market Offerings
Development
Asset 
Management
Fund 
Management
Advisory
Investments 
in publicly 
listed securities 
through fund 
structures 
and client 
discretionary 
portfolios
Private equity 
investments 
in companies 
and funds, 
with a focus 
on distressed 
and special 
situations
Vertically 
integrated 
specialist 
platforms 
across the 
value chain and 
regions
Specialist 
platform 
focused on 
private debt 
and alternative 
financing, 
through 
standalone 
deals and fund 
structures
Full range 
of strategic 
advisory 
services and 
capital market 
solutions across 
the investment 
banking 
spectrum
Sales & trading 
platform 
primarily 
focused on fixed 
income and 
credit
Global 
execution, 
brokerage and 
custody services
Manages 
principal 
investments, 
non-core 
assets, 
corporate 
developments, 
treasury and 
other shared 
services 
related to the 
company
Public 
Markets
Private 
Markets
Real Estate
Banking
Corporate
Debt
Markets
Investment 
Management
Asset Management
Investment Banking
Fund 
Investments
Direct 
Investments
 Co-
Investments
Mezzanine 
Debt
Subordinated 
Debt
Senior 
Secured Debt
M&A 
Advisory
Debt Capital 
Markets
Equity Capital 
Markets
Sales
Trading
Global 
Execution
Brokerage 
Services2
Custody2
1 Through licensed counterparties
9     SHUAA Annual Report 2021

United Kingdom
United Arab 
Emirates
Kuwait
Jordan
Real Estate 
Development
Real Estate Asset 
Management
Saudi Arabia
Real Estate Development
Real Estate Asset Management
Real Estate Debt & Advisory 
Investment Banking
Sales & Trading Platform
Public Markets
Private Markets
Real Estate Asset Management
Real Estate Development
Debt 
Investment Banking
Markets
Operating across geographies
Countries of 
Operation¹
8
Employees¹
320+
Nationalities²
24
Note: Location map is not representative of all SHUAA subsidiaries 
1 Includes all subsidiaries
2 Refers to SHUAA UAE and KSA only
    
      SHUAA & Subsidiaries Office Locations
Core Markets
Europe
Middle East & North Africa
Sales & Trading Platform
10     SHUAA Annual Report 2021

BOARD OF DIRECTORS
Fadhel Al Ali 
Chairman
Fadhel Al Ali’s last position with 
First Abu Dhabi Bank (FAB) 
was as Deputy Group CEO and 
Group COO.
Mr. Al Ali is  the Chairman 
of  Dubai Financial Services 
Authority, FAB Suisse (Private) 
Bank SA , MIRA Bank, Serbia 
and a board member with Abu 
Dhabi Development Holding 
(ADQ).  He is the Vice Chairman 
of  First Gulf Libya Bank and is a 
board member with Al Nahdha 
Investments.
Mr. Al Ali holds a Bachelor 
of Science in Industrial and 
System Engineering from 
the University of Southern 
California and a degree in 
High Performance Boards, from 
the International Institute of 
Management Development, 
Lausanne.
Badr Al-Olama
Director
Badr Al-Olama is the Executive 
Director of the UAE Clusters 
unit within Mubadala’s UAE 
Investments platform.
Mr. Al-Olama is the Chairman of 
Strata Manufacturing (Strata), 
the Sanad Group (Sanad), and 
Emirates Post Group, and also 
serves as a Board Director at Al 
Yah Satellite Communications 
Company (Yahsat), Mubadala 
Health, Oumolat Security 
Printing, YAS Holding LLC, 
TASIAP GmbH. 
Nominated as a ‘Young Global 
Leader for the Middle East 
and North Africa Region’ by 
the World Economic Forum in 
2016, Badr began his career as 
a lawyer and holds a degree in 
Shari’a and Law from the UAE 
University (2002) as well as an 
LLM from Harvard Law School 
(2005).
Ahmed Bin Braik 
Vice Chairman
Ahmed Bin Braik held senior 
positions within Majid Al 
Futtaim Holding (MAF) for 
nearly 10 years, retiring as 
Deputy CEO of the Group 
Holding Company and a 
member of the Holding 
Board.
Prior to joining MAF, Mr. Bin 
Braik founded Dubai Bank 
and served as its Chief 
Executive Officer. Mr. Bin 
Braik was also Founder and 
Board member of the Dubai 
International Financial Centre 
and Dubai Economic Council.
Mr. Bin Braik held 
directorships at the Dubai 
Economic Council and British 
Telecom Saudia. A member of 
the Association of Accounting 
Technicians, Mr. Bin Braik is a 
graduate of Leeds University.
Maha AlQattan 
Director
Maha AlQattan has been 
leading the People function 
at DP World since 2017. 
As Group Chief People & 
Sustainability Officer, Maha is 
focused on empowering DP 
World’s global trade portfolio 
of more than 71,000 people in 
over 69 countries.
Ms. AlQattan has a master’s 
degree in Industrial 
and Labour Relations, 
from Cornell University 
(USA) and a Bachelor of 
Business Administration in 
Management and Human 
Resources from the University 
of Wisconsin-Madison. She 
is also a graduate of the 
Mohammed Bin Rashid 
Centre for Leadership 
Development Promising 
Leader’s programme run by 
Duke University and INSEAD.
Murshed Alredaini  
Director 
Murshed Alredaini is the 
Group Chief Executive Officer 
of Yas Holding LLC (YHL), a 
UAE- headquartered holding 
company engaged in multi- 
business sectors.
Mr. Alredaini joined the group 
in 2006, initially as the CEO of 
C4 Advanced Solutions (now 
an EDGE Group company) 
and thereafter assumed the 
role of Group CEO.
Mr. Alredaini values with 
pride, his 15-year service 
with the UAE Armed Forces 
following his Bachelor 
Degree in Electronics 
Engineering from the USA 
and an MBA from the UAE. As 
an accomplished business 
leader he serves on several 
internal and external boards.
Lamis Al Hashimy
Director 
Lamis Al Hashimy is the Co-
Founder of Palmade®.
Ms. Al Hashimy is a seasoned 
finance professional who 
has held senior positions 
in the fields of Finance, 
Investor Relations and 
Corporate Governance at 
Dubai Holding, for more than 
decade.
Since 2014, Ms. Al Hashimy is 
a founding Board Member 
of the Milele Zanzibar 
Foundation.
Ms. Al Hashimy holds a 
Bachelors and Master Degree 
of Science in Accounting 
from the Carroll School of 
Management at Boston 
College in Massachusetts, 
USA.
Christopher Ward  
Director
Christopher Ward has had 
over 30 years’ experience in 
corporate finance.
Mr. Ward was an equity 
partner of Deloitte in the 
UK from 1979 to 2008. More 
recently, from September 
2008 to May 2011, Mr. Ward 
established and ran the 
Financial Advisory Services 
practice of Deloitte in the 
Middle East, as the Chief 
Executive Officer of Deloitte 
Corporate Finance Limited 
(DFCL). Mr. Ward is currently 
Chairman of Qannas 
Investments Limited, and has 
served on the Board of Gems 
Education Group
Mr. Ward holds a Bachelor of 
Science degree in Commerce & 
Accounting from Southampton 
University, and is a holder 
of the Corporate Finance 
qualification (CF).
11     SHUAA Annual Report 2021

SENIOR MANAGEMENT TEAM
Jassim Alseddiqi 
Chief Executive Officer
Jassim Alseddiqi is the Group 
Chief Executive Officer of SHUAA 
Capital, the leading asset 
management and investment 
banking platform.
Chairman of SALAMA and 
Eshraq Investments, Mr. 
Alseddiqi also serves on the 
boards of First Abu Dhabi Bank 
(FAB), Dana Gas and Abu Dhabi 
Chamber of Commerce and 
Industry.
Mr. Alseddiqi holds a MSc in 
Electrical Engineering from 
Cornell University.
Walid El Hindi
CEO of Real Estate
Walid El Hindi is the CEO of 
Real Estate of SHUAA Capital, 
responsible for managing 
SHUAA’s significant real estate 
portfolio and activities across 
the value chain and multiple 
geographies. Mr. El Hindi’s role 
encompasses driving further 
growth in the Group’s real estate 
platform.
25+ years of experience in the 
Real Estate sector. Previously, 
Mr. El Hindi spent five years as 
CEO at IMKAN Properties and 
prior to that Mr. El Hindi worked 
as Chief Development Officer 
for Emaar Misr. Mr. El Hindi 
holds a Bachelor of Architecture 
degree from the University of 
Minnesota.
Bechara Raad
Chief Operating Officer
Bechara Raad is the Group 
Chief Operating Officer 
responsible for overseeing 
the Group’s support and 
operational functions and 
ensuring timely provisions and 
allocation of human, financial 
and physical resources.
30+ years of professional 
experience, including COO at 
Credit Suisse for MEA and COO 
at Audi Capital in Saudi Arabia. 
Bechara holds an MBA from 
INSEAD.
Fawad Tariq Khan 
MD, Head of Investment 
Banking
Fawad Tariq Khan is the MD, 
Head of Investment Banking. 
Mr. Tariq Khan is responsible for 
SHUAA Capital’s M&A advisory, 
debt and equity capital 
markets and sales and trading 
business lines.
Mr. Tariq Khan started his 
career with Deloitte based out 
of London before joining the 
Dubai office where he helped 
set up its Middle East debt 
advisory practice.
15+ years of professional 
experience. Mr. Tariq Khan 
serves on the board of 
Northacre and NCM. Mr. Tariq 
Khan holds a MSc in Business 
Studies from UCD Smurfit 
Business School.
Joachim Mueller 
Chief Financial Officer
Joachim Mueller is the 
Group Chief Financial Officer 
responsible for driving 
operational excellence 
across the Group’s Finance, 
Treasury, Tax and Investor 
Relations functions as well 
as for providing budgeting, 
decision-making and 
reporting support to the 
Group’s portfolio companies.
20+ years of international 
experience including senior 
positions at Deutsche Bank 
in Frankfurt and London, 
including CFO for EMEA 
and Group Head of Investor 
Relations. Mr. Mueller 
holds a MSc in Investment 
Management from Cass 
Business School London.
Ajit Joshi
MD, Head of Public & 
Private Markets
Ajit Joshi is the MD, Head of 
Public & Private Markets. Mr. 
Joshi is also the investment 
manager of Goldilocks 
Investment Company Limited, 
an investment fund launched 
in 2015. 
16+ years of experience in 
technology consulting, equity 
research, investment banking 
and management. Previously, 
Mr. Joshi worked with Bank 
Muscat’s investment banking 
team. Mr. Joshi holds an MBA 
from the Indian Institute of 
Management Lucknow.
Bachir Nawar 
Chief Legal & Compliance 
Officer
Bachir Nawar is the 
Group Chief Legal & 
Compliance Officer of the 
Group and manages the 
multijurisdictional legal and 
compliance requirements of 
the business.
20+ years of experience with a 
specialization in governance 
improvement. Mr. Nawar 
holds a LLB from Saint Joseph 
University, Beirut, Lebanon.
Natasha Hannoun 
Head of Debt
Natasha Hannoun is the Head 
of Debt. Ms. Hannoun also 
serves on the Board of Directors 
of the Abu Dhabi-listed 
investment company Eshraq 
Investments PJSC.
Ms. Hannoun has broad 
experience in advisory, 
origination, structuring and 
execution across multiple asset 
classes including Private Equity 
and Debt Investments, Real 
Estate and Fixed Income.
Prior to joining the Group in 
2014, Ms. Hannoun was part 
of the Corporate Finance 
and Debt Advisory team at 
Deloitte Corporate Finance 
Advisory in Dubai. Ms. Hannoun 
holds a MSc in Physics and 
Mathematics from the 
University of Bristol in the UK. 
12     SHUAA Annual Report 2021

Our Mission
SHUAA’s mission is to create sustainable value for clients, employees and 
shareholders by engineering innovative investment solutions and differentiated 
product offerings for institutional clients and high-net-worth individuals. 
Our business philosophy is rooted in a drive for excellence and performance, 
uncompromising integrity, and a strong team culture.
Leading Regional 
Investment 
Manager
• Strengthen fund raising capabilities
• Create permanent capital vehicles and grow AuM
• Increase product suite and cross-selling opportunities
Regional 
Dominance in 
Investment Banking
• Dominate fixed income trading and capital markets 
business in the GCC
• Strengthen advisory capacity
High-Performance 
Workplace
• Strengthen culture of performance and teamwork
• Develop skills and capabilities
• Attract, nurture and retain best talent
Innovation 
Leadership
• Solidify position as a product innovation house
• Challenge the status quo
• Develop new ways of the client journey
Process-centric & 
Digitally-enabled 
Platform
• Become a process organization
• Embrace data-driven strategies, analytics and AI
• Scale, improve and utilise the operating platform
We deliver 
uncompromising 
quality to our 
customers
13     SHUAA Annual Report 2021

Our People
SHUAA’s strength is derived from our experienced and diverse workforce. We’re proud to employ a workforce from over 20 
different countries. A quarter of our employees are women, and the average experience of our management team members 
spans ~20 years.
Our Strategic Levers
To achieve our business goals, SHUAA 
has defined three strategic levers which 
were communicated in late 2019. 
The first is to strengthen and grow 
our core businesses by expanding our 
regional footprint, growing our asset 
management business and expanding 
our investment bank franchise, to 
enable us to access new revenue pools.
The second is to diversify the 
products and services within those 
core businesses, growing our fixed 
income platform and our permanent 
capital vehicles whilst engineering 
new products, resulting in increasing 
recurring income.
The third is to scale our platform and 
operate it more efficiently by optimising 
our balance sheet structure, reducing 
funding costs and digitizing the v, which 
will lead to increased profitability and 
strengthened control.
 average experience of senior 
management
firmwide female representation
23+ years
28%+
nationalities of employees¹
24+
staff retention employees²
89%
1 Relates to SHUAA UAE and KSA only
2 Excludes terminated contracts
Defined strategic levers
Strengthen and grow 
core businesses
Access new revenue pools
Diversify products and 
services within core 
businesses
Increase recurring income
Scale the platform and 
operate more efficiently
Expand regional 
footprint¹
Grow asset 
management business
Expand investment 
bank franchise
Grow fixed income 
platform
Grow permanent 
capital vehicles
Engineer new 
products
Increase operational 
efficiency
Optimise balance sheet 
structure
Digitize the 
organisation
Increase profitability
Strengthen control
1 Across Investment Banking and with Family Offices and Ultra High Net Worth individuals
One Firm 
Culture
14     SHUAA Annual Report 2021

MARKET  
REVIEW
An overview of the global macroeconomic environment, equity, 
fixed income and real estate markets during 2021 as well as the 
outlook for 2022.
15     SHUAA Annual Report 2021

Gold
50%
10%
20%
30%
40%
0%
-20%
-10%
-30%
-40%
-50%
S&P
500 
MSCI 
EM
MSCI
World
MSCI
GCC
MSCI 
Arabian 
Markets 
UK
Equities
MSCI 
Europe 
index
MSCI 
EMEA 
Oil
Global Equities
2021 was another strong year for 
equities with the US again leading the 
way. Markets rejoiced in sizeable fiscal 
stimulus, ongoing QE and extremely low 
interest rates which propelled a strong 
economic recovery. This enabled market 
participants to largely ignore high and 
accelerating inflation, disrupted supply 
chains and repeated outbreaks of 
variants new Covid-19 variants. The S&P 
rose 27% on the year to finish around 
record highs, with Europe close behind 
up 22% and Japan up 10%.  Additionally, 
Emerging Markets fell 5% as the 
Chinese market weighed heavily due 
to a regulatory clampdown on sectors 
such as technology and education, 
and a disintegrating property market 
which saw the stock market crash 
23%. Elsewhere, the sentiment was 
particularly buoyant which meant that 
this was the first year that every sector 
in the S&P rose by at least 10%. In fact 
the S&P has now delivered a 3 year 
return of over 90%. 
During 2021 earnings growth was the 
main driver of equity performance 
as economies recovered strongly 
despite the sustained covid related 
impact. Commodity prices soared as 
demand returned faster than suppliers 
were prepared for, leading to much 
stronger oil, gas and metal prices. 
Unsurprisingly energy and materials 
were amongst the best performing 
sectors. Persistently low interest rates 
also supported the technology sector 
yet again, with the likes of Apple and 
Microsoft again outperforming. Excess 
liquidity continued to push even the 
most speculative parts of the market 
higher despite the threat of higher 
interest rates as inflation accelerated. 
Higher rates would normally lead to 
lower equity valuations, particularly in 
those businesses whose profits are far in 
the future. The laggards were consumer 
services such as airlines, hotels and 
leisure businesses that suffered due to 
rolling lockdowns across much of the 
world as each variant hit.
As we enter 2022 high inflation, a 
reduction in liquidity from central banks 
and rising rates should see some market 
rotation away from growth areas of 
the market such as technology towards 
more cyclical and value oriented stocks 
and geographies. Rising rates normally 
supports sectors that benefit most 
from faster economic growth such as 
commodities, industrials and consumer 
focussed sectors. Also this would tend 
to favour Europe and Asia over the 
US. Given the large valuation discount 
that cyclicals now trade at relative to 
growth, we would expect this rotation 
to persist throughout the year as long 
as the economic environment remains 
supportive.
Chart 1: All world index performance and commodities
 2020        2021
2021 Source: Bloomberg 
16     SHUAA Annual Report 2021

MENA Markets
2021 saw a stellar performance from 
regional equities. For the year, ADX 
General Index outperformed, rising 
68.2%. Saudi’s TASI followed, rising by 
29.8%. The rest of the markets also 
ended in positive territory, with the 
DFM Index rising 28.2%, Kuwait’s All 
Share Index up 27.0%, Bahrain’s All 
Share Index up 20.6%, Oman’s MSM 
30 Index up 12.9%, Qatar’s QE 20 Index 
up 11.4%, and Egypt’s EGX 30 up 10.2%. 
Value traded remained elevated for the 
year (up 20% YoY), with 20 new listings 
in the GCC further boosting volumes. 
Financials were the top performing 
sector in the region, followed by, 
telecom and real estate sectors in the 
UAE and materials was the second-
best performer in Saudi. 
Some major events/announcements 
during 2021 include but not limited 
to a) the restoration of ties and 
reopening of borders with Qatar by 
the GCC neighbours b) amendment of 
citizenship law/Golden Visa in the UAE 
c) approval of a draft law of allowing 
foreign investors to own up to 100% 
of the banks listed on the QSE by the 
Qatar Cabinet d) string of successful 
IPO’s in Abu Dhabi, starting with 
Yahsat, followed by Adnoc Drilling and 
Fertiglobe e) announcement of plans 
to list 10 state-owned Dubai based 
entities in the DFM and establishment 
of market making fund.
Oil
               
Brent closed at USD 79/bbl at the end 
of Dec’21 (+50% for the year) averaging 
at USD 75/bbl during the month (-7.5% 
MoM and +49% YoY). In the most recent 
OPEC+ meeting, members agreed to 
stick to their existing policy of gradual 
oil output increases. The key events 
that impacted oil prices in 2021 
were increased vaccination rates, 
the loosening of pandemic-related 
restrictions, and a growing economy 
which resulted in demand rising 
faster than supply. The U.S. crude oil 
production in 2021 decreased by 0.1 
million barrels per day (b/d) from 
2020 and by 1.1 million b/d from 2019. 
Cold weather in February, hurricanes 
in August,  and the continuing 
decline in investment among U.S. oil 
producers since mid-2020, contributed 
to the bullish curve of Oil in 2021.
Chart 2: GCC markets and valuations 
2021 Returns (%)
P/Ex 2022
P/Bx 2022
Dividend Yield TTM
Kuwait All Share Index
26.20%
16.05
1.68
3.60%
Tadawul All Share Index
29.80%
18.3
2.1
2.40%
DFM General Index
28.20%
11.08
1.11
3.75%
Abu Dhabi General Index 
68.20%
17.96
2.3
2.61%
QE (Qatar) 20 Index
11.40%
13.35
1.93
3.81%
Bahrain All Share Index
20.60%
9.71
0.87
3.48%
MSM (Muscat) 30 Index 
12.90%
10.92
0.84
3.80%
2021 Source: Bloomberg 
17     SHUAA Annual Report 2021

Fixed Income
2021, was the first time in nearly a 
decade that bond investors have had 
significant negative returns Global 
Aggregate Bond Index was down 
3.2% in 2021, mainly driven by Global 
Investment Grade (-4.7%), while the 
High Yield was up 1% in 2021. Global 
Sukuk was down 2% in 2021. In part, 
the sell-off in bonds was the result of 
fading coronavirus risks and a robust 
economic recovery, and in part the 
consequence of elevated inflation risk 
and the potential removal of policy 
accommodation. With the pandemic 
largely behind us, the interest rates 
market next year will likely be driven 
by inflation outcomes and how central 
banks choose to respond. In the 
last FOMC meeting of 2021, the Fed 
committee doubled the monthly pace 
of asset purchase tapering, putting 
purchases on track to be concluded 
by Mar-22. And the median forecast 
“dot” now signals that the FOMC plans 
to hike three times in 2022. The stated 
reasons for the taper decision were 
stronger inflation and employment 
data reducing the need for easier 
policy, and the desire to give the Fed 
the option to raise rates sooner.  Our 
YE22 5y and 10y UST yield targets are 
1.8% and 2%, which are about 30bp and 
25bp above spot levels respectively. 
Though nominal policy expectations 
have risen in recent months, real policy 
expectations remain exceptionally 
negative and along still-large 
Fed purchases, are keeping yields 
depressed. Both factors point to higher 
yields in 2022. 
In our region, GCC bond markets had 
a good year, with the Barclays GCC 
Credit+HY Index up 0.9% for the year, 
while GCC US$ IG index was up 0.3%, 
and GCC US$ Sukuk index was up 2.3% 
for the year. Amongst the regional USD 
sovereign bonds Oman outperformed 
(+8.3% returns), followed by UAE (+1.1%), 
while Qatar (-0.4%) was a laggard. 
Total fixed income and sukuk net 
issuances for the GCC region clocked 
11% growth in 2021, totalling USD538bn 
of hard currency bonds.  In terms of 
type of issuer, bonds/sukuk issued by 
GCC governments and financials (59% 
of total issuance), continued to account 
for the bulk of fixed income issuances 
during the year. UAE recorded as a 
top issuer in the GCC for 2021. We also 
note that 26% of the new issuances 
was Sukuk, while the remaining was 
conventional.
Sector-wise Bond Issuance in GCC for 2021 
Country-wise Bond Issuance in the GCC for 2021 
 Government      
 Financials      
 GRE      
 Corp
 
 UAE            
 Saudi        
 Qatar      
 Oman       
 Bahrain      
 Kuwait
5%
4%
6%
37%
19%
7%
30%
38%
29%
25%
2021 Source: Bloomberg, SHUAA Capital 
2021 Source: Bloomberg, SHUAA Capital 
18     SHUAA Annual Report 2021

3.5
4.0
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2021 UK Economic 
Update
Over the course of 2021, the biggest 
challenges facing the UK’s economy 
have been global in nature, supply 
chain bottlenecks driven in part by 
sustained labour shortages, as well as 
broader pandemic-related inflationary 
pressures as waves of virus infections 
continued.
Encouragingly, the UK’s economic 
growth has now recovered to pre-
pandemic levels, following the dramatic 
drop in GDP in the summer which saw 
growth fall by almost 20%. From this low 
base, GDP growth has recovered well, 
albeit with more volatility, bouncing 
back +17% in the following three 
months and then oscillating between 
contraction and growth to the end of 
the year1. The positive reaction from 
the economy is closely linked to the 
opening up of society supported by 
increasing immunity to Covid-19, which 
has seemingly suppressed the effects of 
the Omicron variant. 
As GDP growth stabilises, inflation has 
fast become the key concern to the 
UK, surging 5.4% over the 12 months to 
December 2021, to a 30-year high2. This 
sharp rise has been a consequence of 
damaged trade relations due to Brexit, 
which has brought additional political 
uncertainty deterring new business 
investment.
Looking back on the impacts of 
the pandemic, it is clear there has 
been uneven distribution across 
sectors, regions and households. 
Lower income households have been 
squeezed, especially those struggling 
to retrain and re-enter the workforce 
post furlough, while higher income 
households have built up considerable 
savings. Growth in the hospitality sector 
is projected to accelerate in a fully 
opened economy, while output from 
other sectors, like construction and 
manufacturing, is expected to moderate 
due to continued workforce shortages, 
supply bottlenecks, and weakening 
demand and business confidence3.
Towards the end of 2021, inflationary 
pressure prompted the expectation 
that the Bank of England (BoE) would 
increase its key interest rate to bring 
the economy under control. However, 
the Bank shocked UK economists in 
November, voting to keep the base rate 
stable, yet by December it reversed this 
decision and became the first of the 
world’s major central banks to raise its 
policy interest rate4, +15 basis points 
from 0.10% to 0.25%. 
This was in marked contrast to 
consensus opinion earlier in the year, 
when domestic economists and 
politicians were more concerned with 
the spectre of deflation, driven by the 
end of the ‘furlough’ scheme, which 
would cause the unemployment rate 
to spike higher. Instead, unemployment 
levels have stayed remarkably stable 
and remain only a fraction higher than 
pre-pandemic levels at c.4.1%. Against 
this background it is not a surprise 
that wages have continued to rise at a 
brisk pace, with the latest figure for the 
annual increase in total pay coming in 
at 4.9%5.
Looking ahead to 2022, consensus 
opinion is that growth will be between 
4.5% and 5.1%6, although these growth 
estimates will be skewed by the low 
starting point created by the national 
lockdowns in early 2021.  These relatively 
modest forecasts continues the low-
growth trend we have seen throughout 
2021, driven by the normalisation of 
economic activity.
1 GDP | ONS | December 2021
2 Inflation and Price Indices  | ONS | December 2021
3 Political uncertainty and Brexit will slow UK recovery 
  | FT | January 2022
4 UK Inflation and Interest Rates | HSBC | January 2022
5 Average weekly earnings in Great Britain | ONS |
  January 2022
6 UK Economic Outlook | PWC | January 2022
7 GDP | ONS  | November 2021
8 UK interest rates | FT | November 2021
9 Labour Market Overview | ONS | October 2021 
KEY PERFORMANCE INDICATORS | UK ECONOMY
Q4 2021
Q1 2021
Economic Growth GDP7
e.0.70%
-1.50%
Base Rate8
0.25%
0.10%
Inflation CPI8
5.40%
0.70%
Unemployment9
e.4.10%
4.90%
10 Year Gilt
0.92%
0.73%
FTSE 100
7,372
6,674
UK UNEMPLOYMENT RATE
 Annual CPI Rate % (2015=100)      
 BoE Target
19     SHUAA Annual Report 2021

London Office Market
Occupational Market
Across the Central London office 
occupational market, after a slow start 
to the year, which saw take up reach 
1.3m sq ft in Q11, it was encouraging 
to see by year end there were clear 
signs of improvement. Q4 2021’s take 
up reached 3.2m sq ft which surpassed 
the 10-year average of 3.0m sq ft for the 
first time in two years2.
On the supply side, high availability 
continues to persist across Central 
London, with over 25m sq ft of 
office accommodation, as at year 
end, currently standing vacant and 
available, well beyond the 10 year 
average of 15m sq ft.  However, the 
vast majority, 75%, is second-hand 
space. This has resulted in a worsening 
vacancy rate to 9%, which since Q4 
2019 has more than doubled, from a 
low point of 4%. The bi-furcation across 
the Central London office market 
demonstrates how best in class space 
continues to outperform secondary 
space as occupiers look for the best 
quality and most sustainable office 
space to provide the best and safest 
working environment for their staff.
Focussing on the West End, long-
term limitations to supply and the 
prestige of the area may provide 
some resilience against a weight of 
tenant offered space coming to the 
market. The supply of new space in the 
submarket continues to be constrained 
with a little over 2.0 million sq ft of 
known future supply, of which roughly 
half completed during 2021 with 19.0% 
of the space already pre-let3. Only 13.9% 
of the space under construction is pre-
let, leaving 2 million sq ft available.
This ‘space race’ for the best in class 
buildings, especially ones with positive 
ESG credentials, is creating positive 
rental growth for prime assets. This, in 
conjunction with yield compression, is 
leading to notable capital appreciation 
for Grade A stock. However, the reverse 
is also true.  Buildings that do not meet 
the needs of modern occupiers are 
becoming increasingly obsolete and 
struggling to let. The gap between 
the ‘best and the rest’ in prime central 
London has never been more stark. 
Investment Market
Across the West End investment 
market, the ever-increasing weight of 
global capital targeting core assets 
has driven pricing growth this year. 
Whilst this has been tempered slightly 
due to travel restrictions from overseas 
investors, full year volumes for Central 
London reached around £14 billion 
by year end, 50% up on 2020 activity3. 
The strength and depth of bidding, 
particularly in the West End has been 
notable and provides confidence in a 
strong and stable market going into 
2022. It is expected that UK commercial 
property pricing will remain stable with 
potential further yield compression 
particularly in prime, core income 
market segments4.
Looking ahead, 2022 is expected to 
be a bumper year for commercial real 
estate, given the anticipated return of 
overseas investors to the UK, coupled 
with a pent-up demand and limited 
availability of supply.
UK’s economic growth has now recovered to pre-pandemic levels. The 
positive reaction from the economy is closely linked to the opening up 
of society supported by increasing immunity to Covid-19.
1 CBRE Central London Market Presentation  | December 2021
2 CBRE Central London Office Market Presentation | January 2021
3 JLL | Central London Office Market | December 2021
4 Property Week / Colliers | January 2022
5 CBRE | Central London Office | Q1 2021 
6 CBRE | Central London Office | Q4 2021 
Key West End Stats 5,6
Core demand and supply indicators 5,6
Q4 2021
Q1 2021
Take-up
3.2m sq ft
1.3m sq ft
Availability (Av.)
25.5m sq ft
25.3m sq ft
Under Offers
4.8m sq ft
1.8m sq ft
Vacancy Rate
9.3%
8.9%
Investment
£3.7bn
£1.3bn
Prime NIY
3.25%
3.75%
50000
2015
2016
2017
2018
2019
2020
2021
100000
150000
200000
250000
300000
350000
400000
0
400000
200000
600000
800000
1000000
1200000
1400000
1600000
Post Covid
Outbreak
0
 Takeup (LHS)      
 Availability (RHS)
20     SHUAA Annual Report 2021

Central London Prime 
Residential Market 
Overview
At the start of 2021, we commented on 
the fact that despite the pandemic, 
the market has shown a substantial 
resilience in Central London and 
the UK. This was mainly due, in our 
view to the seven year ‘bear market’ 
coming to its tail end. Additionally, 
not even something as substantial as 
the pandemic was able to prolong it. 
This has continued into 2021, as the 
market has shown incredible resilience 
especially in the high-end of properties 
above the £5,000,000 range. We have 
seen some of the strongest quarters in 
sales of these type of homes since the 
peak of the market in 2014.
Another strong trend that we have 
seen in the market is that international 
buyers have been replaced by local 
owner-occupiers who are looking to 
upgrade their homes following the fact 
that the pandemic has brought to the 
forefront the importance of one’s home.
As previously commented, since the 
market peak in June 2014, the market 
has substantially shifted from off-plan 
sales to completed stock. Thus, it is not 
a surprise that we have had one of our 
strongest sales quarters to date in Q4 
last year as both of our developments 
will be reaching completion in the next 
six months. We have seen very strong 
activity from owners-occupiers who 
have overtaken the strong demand 
we have previously witnessed from 
international buyers.
However, as we navigate our way 
out of this pandemic and with the 
reopening of travel in 2022, we expect 
to have continued interest in both 
owner-occupiers as well as the return of 
international cliental.
The effect of Brexit and 
the pandemic on overall 
activity
There have been many events in the 
last several years which have affected 
the real estate market in London. There 
was a strong rally from the preceding 
20 years from 1994-2014 creating 
stretched valuations. Additionally, 
we have had three Prime Ministers, 
Brexit, three hikes of stamp duties, and 
to cap it all off we have had a major 
pandemic which we all thought would 
lengthen the bear market. However, the 
numbers show that the pandemic has 
not eroded further pricing. Additionally, 
while we thought the pandemic would 
further prolong this bear market, the 
fact is that we have seen the opposite. 
We are now seeing stronger underlying 
activity, more sales of high-end homes, 
especially in the new build markets, 
which lets us believe that the bad news 
is already accounted for in terms of 
pricing.
London continues to be at the forefront 
of both owner-occupiers and investors 
mind when thinking of buying primary 
secondary homes.
Predictions for the year 
ahead
With the strong resurgence of 
inflation, we are predicting that real 
assets such as real estate, are going 
to perform very well in the years to 
come. As we know, real assets are 
one of the best inflation hedges there 
are, and we expect there will be a 
rotation from equities and other asset 
classes into real estate, hence, further 
strengthening the market. It should 
be noted that inflation adjusted 
pricing of prime central London is at 
a very similar levels to where it was 
in September 2009, post the financial 
crisis.
Source: Savills Research
 Quarterly total               10m+               5m - 10m
 5m+ 4 year average (average is for the same months in 2016-2019) 
Q4 2020
£1.23bn
+6%
Jan-20
Sep-20
Feb-20
Oct-20
Mar-20
Nov-20
Apr-20
Dec-20
May-20
Jan-21
Jun-20
Feb-21
Jul-20
Mar-21
May-21
Aug-20
Apr-21
Jun-21
 
Q1 2020
£1.00bn
+11%
Q2 2020
£0.62bn
-35%
Q3 2020
£0.89bn
+34%
Q2 2021
£1.21bn
+27%
21
27
10
17
25
37
32
28
37
27
27
30
44
48
32
56
38
49
Q1 2021
£1.07bn
+18%
21     SHUAA Annual Report 2021

BUSINESS 
SEGMENT 
OVERVIEW
SHUAA operates under two key business segments – asset 
management and investment banking. 
Our asset management segment houses our public markets, 
private markets, real estate and debt  business lines. 
The investment banking segment provides boutique and 
traditional investment banking services, securities services as 
well as a sales & trading platform primarily focused on fixed 
income, currencies and commodities.
22     SHUAA Annual Report 2021

SHUAA Capital has a differentiated and unique public markets platform 
that invests in publicly listed securities through fund structures, with a 
focus on Middle East markets.
Active Constructivism
Fund Approach
GCC
Geographic Focus
Public Equities
Asset Class
Open-Ended
Fund Type
$629 million
Assets Under 
Management
241%
Since Inception
Source: SHUAA GMC, Bloomberg
Performance Since Inception¹
450
500
400
350
300
250
200
150
100
50
0
Jul-15
Feb-17
Oct-18
May-20
Dec-21
MSCI UAE
Goldilocks Fund
MSCI World
S&P Pan Arab
341
204
156
128
Index – 100: July 21, 2015 to Dec 31, 2021
Goldilocks Investment 
Company Ltd
Overview
Goldilocks is an open-ended fund 
launched in 2015 and managed by 
ADCM Altus Investment Management 
Ltd. Goldilocks predominantly invests 
in GCC-listed equities with a long-term 
goal to compound capital at a high 
rate of return whilst minimizing the 
risk of loss of capital by investing in 
listed companies trading at discount to 
intrinsic value.
Since its inception, the fund has 
managed to significantly outperform 
regional and global indices, with a 241% 
net return compared to 28% total return 
for the MSCI UAE, 56% total return for 
the S&P Pan Arab, and 104% total return 
for the MSCI World indices.
Goldilocks follows an investment 
approach based on constructive 
activism. The fund operates with the 
support of other shareholders to 
ensure Boards and management of 
companies work towards executing 
turnaround strategies and unlocking 
shareholder value.
OLDILOCKS
23     SHUAA Annual Report 2021

The Fund operates with the support of other shareholders to 
ensure Boards and management of companies work towards 
executing turnaround strategies and unlocking shareholder value.
Investment Approach
Fundamental 
Analysis 
 Seek out and analyse 
companies exhibiting 
significant valuation 
discrepancies 
between current 
market prices and 
intrinsic value 
 Identify catalysts for 
value recognition 
such as shift in 
strategy, missteps 
by management, 
non­-optimal 
capital structures 
and operational 
inefficiencies
Identifying 
the Goldilocks 
“Candidate”
 Candidate 
companies typically 
have fragmented 
shareholding, allowing 
them to work closely 
with the Board and 
management without 
necessarily requiring 
majority ownership 
of the underlying 
company
 Goldilocks companies 
usually require 
substantial turnaround 
and support from 
external parties to 
unlock value 
Constructive 
Activism
 Acquiring a publicly 
disclosed stake with 
clearly communicated 
“change” objectives 
 Advising management 
and Board through 
engagement on 
company strategy and 
turnarounds including 
change in strategic 
direction, restructuring 
recapitalisation or 
pushing for a sale 
 Engage in proxy 
contests for Board 
control and taking 
a more direct role if 
there is resistance 
Create 
Value for All 
Shareholders
 Implement turnaround 
strategies and 
communicate value 
creation plan with 
the market and 
shareholders
 Allow for controlled 
exit or sale to strategic 
investors following 
implementation of 
turnaround plan 
1 The return since inception formula comprise the performance of the fund investment strategy since its initial date of implementation as a pooled investment which predates the 
fund inception date and its launch to investors on June 4, 2017. The fund portfolio was migrated to Goldilocks Investment Company Limited on June 4 2017. Prior to the migration, 
the portfolio of assets was managed as Goldilocks’ strategy in the form of a pooled investment portfolio for the investors under Integrated Capital PJSC. The cumulative returns 
since inception include returns from the launch of the pooled portfolio.
ICC Fund Platform
SHUAA has established the 
Incorporated Cell Company (“ICC”) 
fund structure in ADGM to launch 
differentiated fund strategies under the 
ICC platform.
SHUAA has launched two funds under 
the ICC fund structure – 
Nujoom Balanced Fund (“NBF”) and 
Nujoom Aggressive Fund (“NAF”) (the 
“Funds”).
The Funds will offer Investors the 
opportunity to diversify their holdings 
into well managed balanced funds 
with allocation across global Sharia 
compliant equities and fixed income.
Fundamental bottom-up analysis 
towards stock picking and selection 
of sukuk investments with a focus on 
maintaining a high-quality investment 
portfolio with a long-term horizon.
ADGM
Fund Domicile
Differentiated Strategies
Fund Approach
Equities & Sukuk
Asset Class
Global
Geographic Focus
Sharia Compliant
Investment
$77 million
Assets Under Management
24     SHUAA Annual Report 2021

ICC Funds invest in high growth, high quality and significantly undervalued businesses.
High Growth
20-50%
High Quality
20-50%
 Significant Value
20-50%
Investment Themes
Digital Transformation
•	 All aspects of business and society will increasingly be conducted 
online and in the cloud.
•	 Large growth potential for technology and software providers as 
more industries and businesses digitalize their products and services 
Economic
Growth
•	 Economic growth should continue to rebound post pandemic as 
supply chains ease enabling businesses to meet large pent-up 
demand.
•	 Whilst the US may slow, fiscal and monetary stimulus will continue in 
China and Europe, boosting their relative growth prospects
Electrical 
Vehicles
•	 All major auto manufacturers have now committed to electrifying 
their product range.
•	 Opportunities exist across auto makers, parts manufacturers, battery 
suppliers and technology providers.
Demographics
•	 Ageing populations create great opportunities in the fields of 
pharmaceuticals and biotechnology
•	 Advances in genomics are making possible novel treatments for many 
of the most common serious diseases.
Consumer Services
•	 As economies reopen then consumers are likely to begin spending the 
savings they have accumulated over the pandemic on services.
•	 Leisure, travel and retail are likely to see a strong rebound in demand. 
Elective medical procedures that were cancelled due to covid should 
also resume.
	
Artificial 	
Intelligence
•	 AI is being used increasingly across industry to enable innovation and 
greater productivity
•	 AI offers huge potential in the fields of genomics and medical care, 
autonomous vehicles, robotics and many more
25     SHUAA Annual Report 2021

ICC Fund Platform
Performance and Metrics
Nujoom Balanced Fund
Nujoom Balanced Fund - Performance
Nujoom Aggressive Fund
Nujoom Aggressive Fund - Performance
 Sukuk        
 Equities        
 FoF Debt        
 Private Debt
 Private Equity        
 Cash
 Sukuk        
 Equities        
 FoF Debt        
 Private Debt
 Private Equity        
 Cash
39%
14%
8%
3%
13%
23%
30%
6%
16%
23%
16%
9%
Source: SHUAA GMC, Bloomberg
Data as of 31st December 2021, post reinvestment of dividend
Source: SHUAA GMC, Bloomberg
Data as of 31st December 2021, post reinvestment of dividend
105
105
115
115
95
95
100
100
110
110
90
90
Nov-20
Nov-20
Jan-21
Jan-21
Apr-21
Apr-21
Jul-21
Jul-21
Sep-21
Sep-21
Dec-21
Dec-21
26     SHUAA Annual Report 2021

Introduction
SHUAA’s private market investment focus is primarily growth capital and unlocking value by identifying 
companies seeking to enhance their performance either organically or through bolt-on acquisitions where 
synergies exist across the platform.
SHUAA is an active private equity investor in the Middle East with expertise in various industries including 
financial services, real estate, hospitality and energy, as well as a successful track record of partnering with 
management, enabling successful turnarounds and growing the companies.
SHUAA provides patient capital and operating support to management, with a focus on growing core 
businesses and making transformative acquisitions to support long-term strategies.
Below is a select list of investments under our private markets segment.
Skycell
Founded in Switzerland in 2012, SkyCell designs and 
manufactures best in class containers for temperature-
controlled transport of pharmaceuticals.
Critical innovations in container design, insulation, and 
cooling have propelled the company into one of the leading 
players in the global pharma cold chain. 
Skycell is playing a key role in covid vaccine logistics. SHUAA’s 
managed funds invested in Skycell’s Series C funding round 
in 2021.
Anghami
Anghami is the leading music streaming service in the MENA 
region. 
SHUAA’s initial investment in early 2021 was part of the 
latest funding round which saw participation from SHUAA’s 
managed funds and co-investors. 
Subsequently, SHUAA was the lead advisor on Anghami’s 
listing via a merger with Vistas Media Acquisition Company 
(VMAC) which included a PIPE investment of USD 40 million. 
SHUAA paved the way for Anghami to successfully begin 
trading on NASDAQ New York under the ticker symbol 
“ANGH” on February 04, 2022.
Growth/Value
Investment Approach
Special Situations
Investment Focus
Patient Capital
Multi-Sector 
Expertise
27     SHUAA Annual Report 2021

Stanford Marine Group
Stanford Marine Group (SMG) is a Dubai-based company 
catering to the offshore oil & gas sector in the GCC, Africa, 
and SEA region for over 20 years; the company primarily 
focuses on chartering, building, and repairing Offshore 
Support Vessels.
SHUAA acquired a majority stake in SMG in a liquidation 
scenario from Abraaj and a co-investor.
In 2020, SHUAA successfully restructured SMG’s balance 
sheet through a debt buyout deal. The company performed 
exceptionally in 2021 with group revenues growing by 10% 
YoY and EBITDA by 55% YoY.
NCM Investment
NCM Investment is primarily a trading and CFD platform 
with operations across Kuwait, Turkey, Jordan and the UAE.
It is a subsidiary of Amwal Investment (previously listed on 
Boursa Kuwait), of which SHUAA is a majority shareholder.
Grandweld
Grandweld is a fully integrated shipyard providing 
shipbuilding, ship repair, and engineering solutions to serve 
the offshore and marine industry around the world.
Established in 1984, Grandweld has developed as one of the 
region’s most established and versatile shipyards, providing 
both quality and value. 
28     SHUAA Annual Report 2021

Qannas Investments Limited
Qannas Investments Limited (“QIL”) is a closed-ended fund 
which invests primarily in public equities, debt and pre-IPO 
financing. Previously listed on the LSE’s AIM, the fund has a 
value investing approach with a focus on the GCC region.
Qannas Investment Strategy
Equity, debt and
pre-IPO financing
Asset Class
Value and growth investing 
using an “engineering 
investment” approach
Philosophy
Investment Focus
Equity (up to 100% of assets)
Debt instruments (up to 25% of assets)
Other instruments (up to 10% of assets)
GCC
Geographic Focus
29     SHUAA Annual Report 2021

Best practice and differentiated strategies throughout investment and 
divestment cycle
Robust Investment Process
Deal Flow
Deal Access
Through Proprietary Network
Deal Review
Investment & Risk Assessment
Deal Execution
Underwriting & Balance Sheet
Management &
Value Creation
Exit
Investment Strategy
Geography
•	 MENA
•	 GCC
Sectors
Investment
Types
•	 Technology
•	 Shipping
•	 Insurance
•	 Infrastructure
•	 Financial Services
•	 Real Estate
•	 Controlling stakes or minority with 
substantial influence
•	 Special situations
Portfolio Company Management
Investment & Post-
Investment & Post-
Acquisition Team
Acquisition Team
Board of Directors
Board of Directors
Independent 
Independent 
Directors
Directors
Specialist & 
Specialist & 
Partner Firms
Partner Firms
Value Creation
Organic Growth
Organic Growth
Balance Sheet &
Balance Sheet &
Cost Optimization
Cost Optimization
Add-on 
Add-on 
 Acquisitions
 Acquisitions
Cash  
Cash  
Generation
Generation
Exit Process
Effective
Process
•	 Competitive sale processes
•	 Extensive preparation to maximize value 
and proceeds
Opportune
Timing
Alignment of 
Interests
•	 Decision-making based on projected 
residual values 
•	 Consideration of risk factors
•	 Not bound by arbitrary fund timelines
•	 All parties are incentivized to maximize 
exit value
Multiple Exit Routes
IPO
IPO
Sale to Strategic
Sale to Strategic
Buyer
Buyer
Sale to 
Sale to 
Financial Buyer
Financial Buyer
Dividend 
Dividend 
Recapitalization
Recapitalization
30     SHUAA Annual Report 2021

Introduction
SHUAA offers a vertically and 
horizontally integrated, specialized 
real estate platform across the value 
chain in many geographies, embracing 
all strategies along the risk-return 
spectrum. Following our merger with 
ADFG, SHUAA has grown to become 
one of the region’s leading real estate 
investors and managers, with expertise 
in deal origination, structuring, capital 
raising, debt restructuring, asset 
management 
and divesting. 
SHUAA’s real estate team continuously 
screens opportunities across all real 
estate classes. Our portfolio includes 
high-end residential, office, retail, 
warehousing and hospitality assets 
across the MENA region, the United 
Kingdom and Eastern Europe, with key 
platforms including Terra Real Estate in 
the Middle East and Northacre in the 
United Kingdom. Our team currently 
comprises ~40 professionals across 
three regions offering three service 
lines – Real Estate Development, Real 
Estate Asset Management and Real 
Estate Fund Management.
Real Estate Under 
Management and 
Development
12m sq. ft.+
Total Real 
Estate AUM
~USD11bn
Value of Real Estate 
Projects Under 
Development
USD 3.6 bn+
Real Estate 
Funds AUM
USD 600 m
Income-Producing 
Real Estate AUM1
USD 1 bn+
Differentiated, horizontal and vertically integrated real estate platform 
with a distinctive product suite across the Real Estate value chain.
1 Excluding Astrea Asset Management
Capital Raising
Property 
Management
Origination
Structuring
Development
Exit
Restructuring
Horizontally Integrated
Asset Management
Investment Banking 
Vertically Integrated
Real Estate 
Development
Real Estate Asset
Management
Real Estate Fund
Management
Real Estate Debt 
and Advisory
Experienced Investment Tea
Experienced Investment Tea
Dedicated and experienced team 
Dedicated and experienced team 
across numerous platforms in the 
across numerous platforms in the 
GCC and UK regions
GCC and UK regions
Alignment of Interests
Alignment of Interests
SHUAA Capital invests alongside 
SHUAA Capital invests alongside 
clients ensuring alignment of 
clients ensuring alignment of 
interest for all parties
interest for all parties
Holistic Platform
Holistic Platform
Integrated platform that covers 
Integrated platform that covers 
the whole investment-divestment 
the whole investment-divestment 
cycle including asset management, 
cycle including asset management, 
restructuring, financing and exit
restructuring, financing and exit
Economies of Scale
Economies of Scale
Given the scale of our real estate 
Given the scale of our real estate 
investments and relationships with 
investments and relationships with 
our operating partners we are able 
our operating partners we are able 
to negotiate favourable terms
to negotiate favourable terms
Robust Processes
Robust Processes
Multiple stages and committees 
Multiple stages and committees 
conduct extensive evaluation of each 
conduct extensive evaluation of each 
investment including suitability for 
investment including suitability for 
investors
investors
Appropriate Investment Structures
Appropriate Investment Structures
These structures serve to minimize 
These structures serve to minimize 
cost and maximize investor returns
cost and maximize investor returns
31     SHUAA Annual Report 2021

Best practice and differentiated strategies throughout investment-exit 
cycle
Robust Investment Process
Property / Development Deal Flow
Deal Access
Through Proprietary Network
Deal Review
Investment & Risk Assessment
Deal Execution
Underwriting & Balance Sheet
Management &
Value Creation
Exit
Investment Strategy
Value Creation
Multiple Exit Routes
Geography
•	 MENA
•	 GCC
•	 Development
•	 Income Generating
Strategies
Asset Classes
•	 Residential
•	 Commercial (Office)
•	 Mixed-Use
•	 Hospitality
Manage
Manage
Occupancy
Occupancy
Sale of Houses/Apts 
Sale of Houses/Apts 
within Development
within Development
Increase
Increase
Income
Income
Drive Rental
Drive Rental
Rates
Rates
Sale to 
Sale to 
Operators
Operators
Greenfield
Greenfield
Projects
Projects
Sale of Property 
Sale of Property 
Portfolio
Portfolio
Manage 
Manage 
Expenses
Expenses
Landmark 
Landmark 
Projects
Projects
Sale of Single
Sale of Single
 Property
 Property
Property & Development Management
Asset Management 
Asset Management 
Team
Team
Operating Partners
Operating Partners
Development
Development
Team
Team
Property
Property
Managers
Managers
Exit Process
Effective
Process
•	 Competitive sale processes
•	 Extensive preparation to maximize value 
and proceeds
•	 Network of brokers and buyers
Opportune
Timing
Alignment of 
Interests
•	 Decision-making based on projected 
residual values of development projects 
•	 Consideration of risk factors
•	 Opportunistic divestment to take 
advantage of property markets
•	 All parties are incentivized to maximize 
exit value
32     SHUAA Annual Report 2021

Real Estate 
Development
Northacre
With a 30-year history and unrivalled 
track record, Northacre is widely 
considered London’s leading developer 
of prime residential real estate. 
Northacre has created more than 
1,000 luxurious homes in some of 
London’s finest residential addresses. 
From restoring the façade of 15 listed 
houses in Hyde Park to working with 
award-winning architects on new-
build apartments in conservation 
areas, Northacre has always focused 
on significant and complex projects in 
prime locations. Its highly experienced 
team is skilled in finance, planning, 
architecture, construction, interior 
design, branding and marketing and 
is currently developing projects with 
a gross development value of over £2 
billion. 
30 Years of Unrivalled Developments
The Bromptons
(1996-2000)
Observatory Gardens
(1992-1995)
Kings Chelsea
(2000-2004)
No. 1 Palace Street
(2014-2022)
The Lancasters
(2006-2011)
Earls Terrace
(1995-1999)
The Phillimores
(2001-2005)
Park Street
(2004-2007)
Vicarage Gate House
(2008-2016)
The Broadway
(2016-2022)
Past Projects:
Real Estate Development
Dates
GDV
Area
Value/ sq ft
IRR Equity
Observatory Gardens
1992-1995
£35m
70,000
£500
41%
Earls Terrace
1995-1999
£100m
120,000
£833
23%
The Bromptons
1996-2000
£100m
125,000
£800
39%
Kings Chelsea
2000-2004
£250m
350,000
£714
18%
The Phillimores
2001-2005
£173m
130,000
£1,331
34%
Park Street
2004-2007
£32m
20,000
£1,600
38%
The Lancasters
2006-2011
£470m
192,000
£2,448
57%
33 Thurloe Square
2012-2014
£20m
6,832
£2,927
43%
Vicarage Gate House
2008-2016
£125m
42,000
£2,976
12%
13/14 Vicarage Gate
2014-2017
£32m
14,580
£2,194
29% (est.)
No. 1 Palace Street
2014-2022
£550m
153,000
£3,594
Under Construction
The Broadway
2016-2022
£1,400m
493,000
£2,839
Under Construction
10+
Prime Central London 
Developments
30-Year +
Track Record
£1.3 billion +
Gross Development 
Value Completed
~£2 billion
Gross Development 
Value Current Projects
1,000 + 
Apartments & 
Houses Created
1992
2000
2005
2010
2015
2020
2022
1995
33     SHUAA Annual Report 2021

Property Type Diversification
Geographical Diversification
Terra Real Estate, Middle East
Launched in 2016, Terra Real Estate 
Investments LLC (“Terra”) is a UAE-
based real estate investment company 
that invests in income-producing 
office, retail, industrial, residential and 
mixed-use assets in the Middle East.
Terra currently has 17 income-
producing assets with a net leasable 
area of circa 436,665 square metres 
(4.7 million square feet).
In 2019, Terra acquired a majority stake 
in Harbour Row Residences, a prime 
residential development located in 
the heart of the prestigious Bahrain 
Financial Harbour. Terra continues 
to seek similar high-quality assets, 
both regionally and internationally, to 
further enhance the portfolio.  
[based on GAV]
[based on GAV]
Total Assets Under 
Management
~USD 655m
Net Leasable Area Under 
Management
~4.7m sq. ft.
Portfolio 
Occupancy
~90%
Gross
Rental Yield
5.8%
Ras Al Khaimah
United Arab Emirates
Bahrain
Manama
Ajman
Dubai
Abu Dhabi
Baynunah Tower
Seaside Tower
Bay View Tower
Al Ain Building
Corniche Building
Al Zeina Tower
Ras Al Khaimah
Executive Towers
C & G
Jebel Ali 
Accommodation
DIP 
Accommodation
Discovery Gardens
Spring Oasis
DIP Warehouse
RAK Building
The Harbour Row
 Industrial
 Residential
 Labour Accommodation
 Commercial
 Dubai
 Abu Dhabi
 Ras Al Khaimah
 Ajman
 Manama
27%
46%
20%
7%
53%
34%
3%
4%
6%
Lulu Retail Mall
Real Estate Asset Management
SHUAA manages risk and enhances value through strong operational capabilities and processes. By understanding the needs 
and financial requirements of investors, our real estate team optimises value for stakeholders through the entire life cycle of a 
real estate investment
34     SHUAA Annual Report 2021

Astrea Asset Management, 
London, United Kingdom 
On behalf of the owner, the Astrea 
team manages an important Prime 
Central London mixed-use portfolio 
comprising over 120 properties. 
The majority of the assets are 
located in Mayfair, Knightsbridge 
and Oxford Street, giving SHUAA a 
deep and strategic understanding 
of the market dynamics of London’s 
prestigious West End.
Bulgari Hotel, London, 
United Kingdom
On behalf of the owner, SHUAA 
manages this luxury 5-star hotel 
situated in a prime location in 
Knightsbridge, London. The hotel’s 
world-famous brand name, design 
and service have led it to become 
one of London’s best-known and 
most prestigious hotels.
Multi-Billion Pound
Portfolio
Portfolio Concentration
Geographic Zones1
Prime Central London
Geographic Focus
Long-Term
Investment Approach
Active Asset Management
Strategic Approach
1 Excluding Astrea Asset Management
35     SHUAA Annual Report 2021

Site Area
~4,000 sqm (0.99 acres)
Architect
Squire & Partners
Main Contractor
Balfour Beatty
Practical Completion
Q2 2022
Property
No. 1 Palace Street, London SW1
No. of Apartments
72
Total Gross Area
153,000 sqft
Amenities
  Underground car parking
  Communal courtyard garden
  Spa and wellness centre
  Swimming pool and personal 
training studios
  Full concierge services 
  Restaurant
Real Estate Fund Management
No. 1 Palace Street, London SW1
No. 1 Palace Street, due for completion 
mid 2022, is an ambitious residential 
revival of an island site incorporating 
five distinct and elegant architectural 
styles. It includes a spectacular Grade II 
listed building overlooking Buckingham 
Palace. 
The completed scheme will include 
an elegant new contemporary facade 
facing onto Palace Street designed 
by award-winning architects Squire & 
Partners.
36     SHUAA Annual Report 2021

The Broadway, London SW1 
Set for completion at the end of Q2 
2022, the transformation of New 
Scotland Yard - the former site of 
the Metropolitan Police Services 
headquarters - into The Broadway 
is one of London’s most anticipated 
super-prime redevelopment projects. 
SHUAA acquired the island site from 
the Mayor’s Office for Policing and 
Crime in 2014 and appointed Northacre 
to create a thriving, state-of-the-art 
residential and commercial destination, 
totalling nearly 600,000 square feet 
(55,740 square metres), over six 14- to 
19-storey towers. The scheme offers 258 
exquisite apartments with far-reaching 
views over London.
Amenities
  Underground car parking
  Communal courtyard garden
  Spa and wellness centre
  Swimming pool and personal 
training studios
  Full concierge services 
Site Area
~7,000 sqm (1.72 acres)
Architect
Squire & Partners
Main Contractor
Multiplex
Practical Completion
Q2 2022
Property
The Broadway, London SW1
No. of Apartments
258
Office Space
6 floors (3 floors in 2 buildings)
116,000 sqft (10,800 sqm)
Retail Space
13 units
27,000 sqft (2,510 sqm)
Total Gross Area
600,000 sqft (55,740 sqm)
37     SHUAA Annual Report 2021

SHUAA Capital Saudi Arabia (SCSA) manages four regional real estate 
funds with a total AUM of more than SAR 1 billion 
SHUAA Wadi 
Al Hada Fund
Residential Real Estate Fund 
Regulated by the CMA
Fund Manager & Fund 
Administrator
SAR 
579,870,000
SHUAA Saudi 
Hospitality Fund I
Hospitality Fund 
Regulated by the CMA
Fund Manager, Developer & 
Fund Administrator
SAR 
429,927,972
Jeddah Centro 
Fund I
Hospitality Fund 
Regulated by the CMA
Fund Manager, Developer & 
Fund Administrator
SAR 
95,072,172
Dammam Rayhaan 
Fund I
Hospitality Fund Regulated 
by the CMA
Fund Manager, Developer & 
Fund Administrator
SAR 
228,399,313
38     SHUAA Annual Report 2021

Geographical Presence
 Primary Market
Riyadh
Select Projects Currently Managed by SCSA
Operational 
(September 2017)
Centro Waha - KSA
Operational 
(September 2016)
Centro Shaheen - KSA
Expected Completion 
(December 2022)
Wadi Al-Hada - KSA
Ready for launching
(September 2022)
Dana Rayhaan - KSA
39     SHUAA Annual Report 2021

SHUAA Wadi Al Hada Fund
SCSA is the investment manager to 
SHUAA Wadi Al Hada Fund, a Capital 
Markets Authority (CMA) regulated 
fund with the primary objective of 
developing a high-end residential 
compound in Riyadh - Al Hada 3 
Compound - comprising 548 units. The 
compound will be an elegant and highly 
amenitized mid- to high-end residential 
development. The fund’s term is due to 
expire in 2022, unless extended.
Net Leasable Area
85,646 sqm
      Apartments
64,960 sqm
      Villas & Townhouses
17,299 sqm
      VVIP Villas
2,335 sqm
      Commercial
1,052 sqm
Land Area
208,434 sqm
Built-up Area
150,040 sqm
Number of Units
548
      Villas
60
      Apartments
488
Project Summary
40     SHUAA Annual Report 2021

SHUAA Saudi Hospitality Fund I     |     Jeddah Centro Fund I     |     Dammam Rayhaan Fund I
SCSA is the fund manager of these CMA-regulated hospitality funds. The primary investment objective of the funds is to 
provide investors with long-term capital appreciation through the acquisition, development and operation of three hotel 
properties and hospitality-related developments in the Kingdom of Saudi Arabia. These hotel properties may house one 
or more components of various categories, including hotels, serviced apartments and condominiums, spas, recreational 
facilities and office buildings, and will be managed exclusively by Rotana Hotels Management Corporation. To date, the 
funds has developed three hotels - Centro Waha Riyadh, Centro Shaheen Jeddah and Dana Rayhaan Dammam. 
SHUAA Saudi Hospitality Fund I - Centro Waha Riyadh
Income Generating
The property has been operating with 
positive EBITDA margins averaging c. 
25% per annum with high occupancy 
rates of c. 75%, while ranking in the top 3 
of its direct competitive set in terms of 
RevPAR performance.
Prime Location
Centro Waha is strategically located 
in the city of Riyadh on Al Olaya Road 
with direct and fast access to and 
from King Khaled Airport and in close 
proximity to key demand generators 
including an upcoming metro station 
at King Abdulla Financial District and 
major entertainment attractions.
Net Leasable Area
8,368 sqm
      Rooms
7,539 sqm
      Facilities
829 sqm
Number of Units
290
Land Area
3,600 sqm
Built-up Area
24,589 sqm
Gross Floor Area
13,088 sqm
Project Summary
41     SHUAA Annual Report 2021

Jeddah Centro Fund - Centro Shaheen Jeddah
Income Generating
The property has been operating with 
positive EBITDA margins averaging c. 
25% per annum with high occupancy 
rates of c. 75%, while ranking in the top 3 
of its direct competitive set.
Prime Location
Centro Shaheen is strategically located 
in the city of Jeddah on Madinah Road 
with direct and fast access to and from 
Jeddah Airport and in close proximity to 
key demand generators including the 
new Haramain High Speed Train Station 
which is expected to connect pilgrims 
directly to Makkah within 45 minutes.
Net Leasable Area
7,126 sqm
      Rooms
6,343 sqm
      Commercial
783 sqm
Number of Units
252
Land Area
2,335 sqm
Built-up Area
22,121 sqm
Gross Floor Area
11,754 sqm
Project Summary
42     SHUAA Annual Report 2021

Dammam Rayhaan Fund I - Dana Rayhaan Dammam
Prime Location
Dana Rayhaan is located in the central 
business and residential district area 
of Dammam, approximately 2.5km 
north east of the city centre and 
business area (5 mins by car) and 
close to a man-made bay to the north. 
We expect this property to benefit 
from the increased footfall of new 
major entertainment destinations and 
events (ex: Dammam Season) that 
have already commenced within close 
proximity and from the revival plans set 
for the Eastern Province.
Relatively Superior Position
The property is strategically positioned 
to stand out from its limited direct 
competition once operational. The 
property has been developed to the 
specification of a modern 5-star hotel 
which is positioned to be relatively 
superior to its direct competitive set. 
Existing competitors in its market 
segment are relatively aged (some as 
old as 20+ years) and lack the required 
attributes to fulfil today’s evolution in 
customer needs.
Net Leasable Area
12,700 sqm
      Rooms
10,680 sqm
      Facilities
2,020 sqm
Number of Units
285
Land Area
4,338 sqm
Built-up Area
42,140 sqm
Gross Floor Area
21,871 sqm
Project Summary
43     SHUAA Annual Report 2021

Introduction
2021 was a transformational year for the Debt Platform 
Following the successful launch and performance of SHUAA Financing Opportunities Fund in 2020, the debt platform has 
expanded its investment strategy into three principal verticals:
2021 MENA Venture Debt Sentiment Report
In 2021, over $2.0 billion was invested in the GCC start-up ecosystem, $267m of 
which was in the form of venture debt, a 3.2x year on year increase. Venture debt 
has started to emerge as a funding alternative and complementary source of 
capital for these high-growth technology enabled companies which used to rely 
solely on equity as a source to fund their businesses.
At SHUAA we are committed to be at the forefront of the latest market 
trends and engineer cutting-edge investment solutions for our clients and 
stakeholders. As part of our leading Private Debt practice in the region, we have 
collaborated with MAGNiTT to present some insights on regional venture debt.
•	 Deep industry expertise underpins our real estate financing business 
which provides capital solutions for performing and distressed real estate 
companies, for both under construction and completed projects
•	 We invest across the capital structure (Senior and Mezzanine) and provide 
flexible solutions which address the borrower’s requirements
•	 Other asset backed financing includes providing companies with term 
loans that use accounts receivable, inventory, machinery, equipment as 
collateral
Real estate and 
asset backed 
lending 
Venture Debt
Alternative 
Strategies
•	 We provide non-dilutive capital, tailor-made for founders looking to drive 
growth
•	 This allows founders to scale up and maintain 100% ownership and control
•	 Our average tickets are between USD 10 million - USD 25 million for 
ventures in the GCC
•	 We partner with financial institutions in the GCC to acquire or assist with 
non-performing loan portfolios, focusing on extracting value through our 
recovery and debt servicing team
•	 The portfolios consist of a diverse spectrum of loans including SME and 
other corporate loans, real estate and other asset financing
•	 Our strategy also supports distressed companies to solve existing capital 
structure difficulties through offering capital solutions
https://bit.ly/shuaa-vd-21
44     SHUAA Annual Report 2021

SHUAA Capital successfully led and invested in the USD 50 million sukuk issued by 
Pure Harvest Smart Farms, as a flagship transaction in its venture debt strategy. 
Pure Harvest
Pure Harvest (“PH”) was founded in 2016 in the UAE as a high-tech agriculture start-
up, focused on the year-round production of healthy, tasty & sustainable fresh fruits 
and vegetables sold at lower cost to imports
The primary activities of the Company are design, development, construction, 
operation and distribution / sales directly to businesses and retailers
Its first proof of concept growing system in the UAE was completed in August 2018, 
and has been generating revenue since November 2018 through direct sales into 
retailers and wholesalers.
Transaction Overview
The USD 50 million was to fully fund the completion of two full-scale projects in the UAE and KSA supported by strong strategic 
partners
SHUAA’s Role
  Off-market transaction directly originated through SHUAA’s network 
  Negotiated attractive minimum returns and upside sharing through embedded warrants
  Using in-house expertise structured Sukuk Ijara / Murabaha secured against the real assets of the Company 
  First transaction in the Middle East where an early-stage business has been able to secure venture debt funding from capital 
markets
  Ongoing interaction with Pure Harvest in key strategic developments through board representation 
Select Case Study – Pure Harvest
Pure Harvest
Sukuk offering of 
senior secured notes
Lead Arranger
March 2021
USD 50,000,000
45     SHUAA Annual Report 2021

Introduction
SHUAA’s investment banking group (“IBG”) serves institutional clients across the MENA region. Our core 
advisory practice helps companies raise capital to strengthen and grow their businesses; provides advice 
on mergers, acquisitions and disposals; and underwrites equity and debt capital market transactions. 
This is complemented by our sales and trading platform, where SHUAA specialises in making markets in 
fixed income and a range of credit products as well as offering a global equities execution capability 
and securities services.
  Full range of advisory services to 
financial sponsors, corporate institutions 
and family offices
  Mergers & Acquisitions
  Disposals, spin-offs, restructurings
  Equity Capital Markets (IPOs, listings, 
private to public transactions, etc.)
  Debt Capital Markets (underwriting and 
syndicating public and private bond and 
sukuk transactions)
  Equities and fixed income trading
  Primary market monitoring and 
investments in new issuances  
  Commentary and analysis of issuances 
and access for clients
  Facilitation and trading desk focused on 
regional corporate and high yield
  Access to leverage
  Originate investments across the 
capital structure, from senior bank debt, 
subordinated debt, opportunistic credit 
and equity co-investments
  Source and provide financing for leveraged 
buyouts, recapitalizations and acquisitions, 
for sponsors and corporates, across a 
broad range of industries
  Special situations and event driven 
opportunities requiring transitionary 
capital to a range of corporates
  Regulated platform allowing clients 
to consolidate all their regional and 
international investments and trading 
under one account to trade seamlessly 
across multiple markets and asset classes
  Management of all settlement, custody 
services, and FX issues
  Full range of custody services including 
receipt, delivery and safekeeping of 
securities; notification and processing of 
capital changes; redemptions, conversions 
and processing of interest income
A
d
v
i
s
o
r
y
F
i
n
a
n
c
i
n
g
S
a
l
e
s
 
&
 
T
r
a
d
i
n
g
S
e
r
v
i
c
e
s
S
e
c
u
r
i
ti
e
s
Markets
Banking
Over the last 3 years our team has delivered in excess of USD 3billion in 
transactions across a full spectrum of capital raising and advisory deals
46     SHUAA Annual Report 2021

Investment Banking has been at the core of SHUAA’s activities over the last 40 years in the region, with the firm being at the 
forefront of investment trends. Starting with the launch of public equities in the early 2000s, SHUAA led a majority of IPOs in 
the region, allowing it to gain a deep understanding into local and regional markets and investor appetites.
on its merger with
Advisor PIPE 
Financing
March 2021
USD 220,000,000
on its PIPE Investment 
for the merger 
between
Advisor PIPE 
Financing
December 2021
USD 154,000,000
Undisclosed
on its merger with
Sole Financial 
Advisor
February 2019
USD 700,000,000
PAL Cooling 
Holding LLC
Anghami
Note: The above showcases our most recent mandates and transactions
Investment Banking
Advisory
on its acquisition of 
Allianz Middle East 
Shipping
Buyside Advisor
January 2022
Undisclosed Value
Stanford Marine 
Group
Debt buyout offer 
from
Financial Advisor
January 2021
USD 1,170,000,000
Dubai Parks and 
Resorts PJSC
Financing
SHUAA’s investment banking segment 
remains highly active delivering 
transactions across DCM and ECM 
including the first ever listing of an 
Arab technology company on Nasdaq 
in the US (Anghami).
Corporate restructuring solutions, as 
well as providing free advisory services 
and financial packages to small and 
medium enterprises (SMEs).
The year ahead will see SHUAA 
continuing to focus on similar activities. 
We recently advised on an acquisition 
in the offshore marine services industry 
and are working towards launching 
special purpose acquisition vehicles 
targeting tech-enabled companies in 
the MENA region
 
SHUAA also acted as lead arranger for 
Pure Harvest’s USD 50 million Sukuk in 
March 2021.
Given 2022’s continued economic 
challenges and changing market 
dynamics, our ambition is to be the 
leading provider of structuring and 
financing solutions to our clients.
Sukuk offering of 
senior secured notes
Joint Lead Manager
January 2020
USD 300,000,000
GFH Financial 
Group
Sukuk offering of 
senior secured notes
Lead Manager
August 2019
USD 135,000,000
The First Group
Sukuk offering 
unsecured notes
Lead Arranger
November 2018
USD 135,000,000
Jabal Omar 
Development 
Company
Bond offering of 
senior secured 
notes
Sukuk offering of 
senior secured 
notes
Joint Lead Manager
October 2020
Lead Arranger
March 2021
USD 150,000,000
USD 50,000,000
SHUAA Capital psc
Pure Harvest
47     SHUAA Annual Report 2021

SHUAA Capital acted as Sole Financial Advisor to Anghami on its merger with 
Vistas Media Acquisition Company on the Nasdaq New York.
About Anghami
Anghami is the leading digital music entertainment technology platform in the 
Middle East and North Africa, with the largest catalogue comprising of more than 
57 million songs available for more than 70 million users. 
Launched in 2012, Anghami was the first music-streaming platform in MENA. In 
digitizing the region’s music, it has become the best-known and best-loved brand 
in music streaming in MENA. Anghami features music from the major International 
labels such as Universal, Sony, Warner and is continuously licensing new content.
Headquartered in Abu Dhabi, it has offices in Beirut, Dubai, Cairo and Riyadh and 
operates in 16 countries across MENA. It is the only service available in English, 
Arabic and French, and remains close to its customer base, not only thanks to its 
pan-regional presence but also via the 56 million user data points it generates 
every day.
Transaction Overview
Anghami became one of the first Arab technology companies to list on NASDAQ 
New York via a merger with Vistas Media Acquisition Company Inc. (NASDAQ: 
VMAC), a publicly traded special purpose acquisition company that raised $100 
million in its August 2020 initial public offering.
The transaction implies an initial pro-forma enterprise valuation of approximately 
$220 million, or 2.5x 2022 estimated revenues.
SHUAA’s Role
  Took lead advisory role in coordinating the overall process and managed the transaction timeline.
  Acted as interface between management/shareholders and other advisors (legal, due diligence providers, valuation, etc.).
  Led discussions with regulators and guided the company through regulatory requirements.
  Assisted in negotiations on transaction documents and advised on financial commercial terms.
  SHUAA also gathered commitments of a combined $40 million ($30 million from SHUAA and $10 million from Vistas Media 
Capital) in PIPE financing.  
  SHUAA previously led a funding round for Anghami prior to the merger.
Select Case Study – Anghami
Anghami
on its merger with
Sole Financial Advisor and 
Global Underwriter to the 
Shareholders of
Vistas Media Acquisition 
Company Inc
Advisor PIPE 
Financing
USD 220,000,000
March 2021
48     SHUAA Annual Report 2021

An overview of our corporate governance framework, the role and 
purpose of our Board of Directors and a detailed view of the 
Board and management committees that support them in helping 
provide recommendations that lead to effective leadership, 
oversight and monitoring of SHUAA and our core functions.
CORPORATE 
GOVERNANCE
49     SHUAA Annual Report 2021

1. Corporate 
Governance Practices
Introduction
Good corporate governance is a value 
that SHUAA Capital psc (“SHUAA” or the 
“Company”) strongly believes in and 
has embraced over the past several 
years to provide a solid foundation 
for achieving our vision and raising 
corporate performance. 
Good governance is important to 
promote and strengthen the trust 
of our Company’s shareholders, 
stakeholders and the public. In that 
respect, our Board of Directors (the 
“Board”) is committed to implement the 
best corporate governance practices 
within SHUAA and its subsidiaries 
(the “Group”) in order to enhance 
shareholder value and instil trust for 
its activities as a financial investment 
company, contributing in this way to 
the successful development of the 
financial system of the United Arab 
Emirates and the wider Middle East. 
SHUAA operates across a multitude 
of jurisdictions and is regulated by 
several different regulators. The Board 
is committed to comply with the 
corporate governance guidelines and 
requirements issued by the regulators 
that govern our activities as a publicly 
listed investment company, and to 
implement a higher standard as 
appropriate while conducting our 
business. 
Corporate Governance 
Framework
SHUAA’s Corporate Governance 
Framework (the “Framework”) plays 
an important role in helping the 
Board gain a better understanding of 
function oversight and management 
roles. The Framework sets out, in the 
Board’s terms of reference, the detailed 
duties of the Board as well as the 
requirements in relation to Board 
appointments, composition, meetings, 
voting procedures and internal 
control systems. SHUAA’s Framework is 
designed to ensure that the following 
standards are met:
  Accountability: SHUAA’s executive 
management sets strategic targets 
and is accountable to the Board. In 
return, the Board is accountable to 
shareholders and other stakeholders. 
Proper governance is maintained 
by the holistic accountability 
framework of the Company. SHUAA 
has established a set of internal 
policies and procedures which form 
the basis of a holistic accountability 
framework. In addition to the 
Framework, these include, but are not 
limited to compliance, risk, human 
resources and finance policies and 
procedures. Both the Board and all 
employees are required to comply 
with such policies and procedures as 
applicable to their specific roles and 
functions. The Corporate Secretary 
periodically undertakes a review 
of the Framework and amends it 
as required to meet the changing 
regulatory needs and expectations of 
the Group and its stakeholders. Such 
policies and procedures are shared 
within the Group as a guidance 
and best practice in order to be 
adapted to each of the subsidiaries’ 
requirements. 
  Responsibility: This encompasses a 
clear separation and delegation of 
authority. 
  Transparency and Disclosure: 
Shareholders and other stakeholders 
can have access to financial records 
and other relevant information to 
assess the Company’s financial 
performance and position.   
  Fair Treatment: All shareholders and 
other stakeholders are treated in an 
independent, objective, equal and 
unbiased manner while applying the 
highest standards in the industry.
2. Trading in Securities 
by Board Members 
and Their First-Degree 
Relatives 
Members of the Board of Directors 
comply with the provisions of Article 17 
of the Cabinet Resolution No. 12 of 2000 
concerning securities and commodities’ 
listing regulations. Additionally, article 
36 of the Securities and Commodities 
Authority (“SCA”) Board of Directors 
Resolution No. 3 of 2000 is being 
followed, concerning the regulations of 
disclosure and transparency. Article 14 
of SCA’s Board of Directors Resolution 
No. 2 of 2001, concerning the regulation 
of trading, clearing, settlement, transfer 
of ownership and custody of securities, 
as well as trading surveillance 
procedures issued by the Dubai 
Financial Market (“DFM”), is also being 
respected, with the Company obtaining 
the required approvals from relevant 
regulatory authorities and abiding to 
the dealings guidance and close-out 
periods as stipulated in such article. 
Furthermore, all the members of the 
Board commit to the annual disclosure 
of the trading of any SHUAA shares 
both for themselves, their spouses and 
children.
The below table demonstrates the shares owned by current members of the Board of Directors, their spouses and children, and 
any trading on SHUAA shares during 2021:
Name
Position/Kinship
Shares Held as of 
31/12/2021
Total Selling
Total Buying
Fadhel Al Ali
Chairman
nil
-
-
Ahmed Binbraik
Vice Chairman
29,822
-
-
Son
33,000
-
-
Christopher Ward
Board Member
nil
-
-
50     SHUAA Annual Report 2021

Code of Conduct and Personal 
Account Dealing Policy
SHUAA has developed a code of 
conduct and a personal account 
dealing policy, the terms of which are 
applicable to all employees, officers 
and directors of the Company. The 
policy considers the relevant United 
Arab Emirates laws and regulations 
governing insider trading, clients’ 
interest and other potential conflicts. 
The policy is enforced by the Company’s 
compliance department, and all 
relevant records are maintained for a 
period of ten years.
3. Board Of Directors
Role and Purpose of the Board
The Board is responsible for ensuring 
leadership through effective oversight 
and monitoring while setting strategic 
directions to deliver sustainable 
stakeholder value over the longer 
term. The Board also oversees the 
implementation of appropriate risk 
assessment systems and processes 
to identify, manage and mitigate the 
Company’s principal risks. These are 
both designed to facilitate effective 
and efficient operations in order to 
ensure the quality of internal and 
external reporting, while complying 
with applicable laws and regulations. 
The Board and management 
committees are also responsible for 
monitoring relevant Company functions 
such as finance, internal and external 
audit, internal control, reputation, listed 
company management, corporate 
governance and effective succession 
planning.
The Company’s executive management 
team and other management 
committees are responsible for 
implementing strategic objectives 
while realizing competitive business 
performance in line with established 
risk management frameworks, 
compliance policies, internal control 
systems and reporting requirements. 
The directors and senior management 
are also committed to maintaining a 
robust control framework being the 
foundation to deliver an effective 
risk management. The Board is 
supported by Board committees 
that make recommendations on 
matters delegated to them under the 
Framework, particularly in relation to 
Board appointments, internal control 
risk, financial reporting, governance 
and remuneration. Each of the Board 
committees’ structures facilitates 
open discussion and debate, with 
steps taken to ensure adequate time 
for committee members to consider 
proposals put forward.
The Board also recognizes the 
importance of its role in setting the 
tone of the Company’s culture while 
embedding it throughout the Group. 
The Board is committed to instil and 
uphold the culture, values and norms 
that are expected to be respected 
and implemented by all internal 
stakeholders. The Board is proud to 
conduct the Company’s business in an 
open and transparent manner. The 
Company’s well-established culture 
ensures that its Framework remains 
flexible and adaptable while allowing 
for fast-decision-making process and 
effective oversight.
The Company has a comprehensive 
and continuous agenda setting and 
escalation process in place in order 
to ensure that the Board has the right 
information at the right time and in the 
right format so that when prompted, 
it can make the right decisions. The 
Chairman of the Board leads the 
process, assisted by the Chief Executive 
Officer and Board Secretary. Such a 
process ensures that enough time is 
being set aside for strategic decisions 
to be made and business critical items 
discussed.
Murshed Alredaini
Board Member
nil
-
-
Badr Al-Olama
Board Member
(Elected on 22/04/2021) 
nil
-
-
Lamis Al Hashimy
Board Member
(Elected on 22/04/2021)
nil
-
-
Maha AlQattan
Board Member
(Elected on 22/04/2021)
700,000
-
700,000 on 
29/08/2021
Board of Director Composition
The tables below lay out the Board members, nature of membership, Board committee memberships and attendance record 
during the year:
Name of Director
Position
Nature of Membership
Period for occupying a seat on 
the board
Current Board Members
Fadhel Al Ali
Chairman
Non-Executive,
Independent
Appointed: 10.06.2019 as 
Director
Elected: 11.07.2019 as 
Chairman
Re-elected 29.04.2021 as 
Chairman
Ahmed Bin Braik
Vice Chairman 
Non-Executive,
Independent
Appointed: 19.12.2016
Re-elected 07.03.2018 as Vice 
Chairman
Re-elected 29.04.2021 as Vice 
Chairman 
Christopher Ward
Director
Non-Executive,
Independent
Appointed 27.04.2020
Re-elected on 22.04.2021
Murshed Alredaini
Director
Non-Executive,
Independent
Appointed 09.11.2020
Re-elected on 22.04.2021
Badr Al-Olama
Director
Non-Executive,
Independent
Elected on 22.04.2021
51     SHUAA Annual Report 2021

Badr Al-Olama
Director
Non-Executive,
Independent
Elected on 22.04.2021
Lamis Al Hashimy
Director
Non-Executive,
Independent
Elected on 22.04.2021
Maha AlQattan
Director
Non-Executive,
Independent
Elected on 22.04.2021
Resigned Directors
HE Abubaker Al Khoori
Director
Non-Executive,
Independent
15.01.2020 to 01.02.2021
Masood Mahmood
Director 
Non-Executive,
Independent
08.08.2019 to 06.03.2021
H.E. Hafsa Al Ulama
Director 
Non-Executive,
Independent
04.11.2019 to 06.03.2021
*Board of Directors’ experience, qualifications and membership in other shareholding companies is highlighted in the below sections. 
Membership of Board Directors in other shareholding companies and supervisory, governmental or significant 
commercial positions
Name of Director
Company name
Position
Fadhel Alali
Dubai Financial Services Authority 
Chairman 
Abu Dhabi Developmental Holding Co.
Board Member
Ahmed Bin Braik
-
-
Christopher Ward 
Qannas Investment Ltd
Chairman
Murshed Alredaini 
-
-
Badr Al-Olama
Emirates Post Group
Chairman
YAS Holding
Board Member
Oumolat Security Printing
Board Member
Al Yah Satellite Communications Company
Board Member
Lamis Al Hashimy
N.A.
N.A.
Maha AlQattan
Anghami Inc
Board Member
Female representation in the Board of Directors for the year 2021
Ms. Lamis Al Hashimy and Ms. Maha AlQattan were elected by the shareholders at the Company’s Assembly General Meeting 
on 22 April 2021 as Non-Executive Board Members for the period ending 21 April 2024.
Board Remuneration
Remuneration of the Board of Directors of SHUAA Capital represents a percentage of the net profits not to exceed 10% of the 
annual net profits of the Company after deduction of all depreciations and reserves.
Remuneration paid to the Board members, in aggregate, in 2021 and recommended to be paid in 2022, 
are as follows:
Remuneration
AED
Remuneration for 2020 (paid in 2021)
AED 4,457,260
Remuneration proposed for 2021 
(to be paid in 2022 after the shareholders’ approval at the AGM)
AED 4,500,000 
Members of the Board of Directors did not receive any allowances, salaries or fees apart from their 
annual remunerations. 
52     SHUAA Annual Report 2021

Allowances for attending the meetings of Board committees during 2021 are as follows: 
Name of member
Allowances for attending the BOD Committees
Name of Committee
Number of 
Meetings Attended
Allowance 
Amount
Ahmed Bin Braik
Audit and Risk
5
Nil
Nomination & Remuneration
2
Nil
Christopher Ward
Audit & Compliance
5
Nil
Risk
4
Nil
Investment
4
Nil
Murshed Alredaini
Risk
3
Nil
Investment
4
Nil
Lamis Al Hashimy
Audit & Compliance
3
Nil
Risk
3
Nil
Investment
3
Nil
Badr Al-Olama
Risk
3
Nil
Investment
3
Nil
Nomination & Remuneration
1
Nil
Maha AlQattan
Audit & Compliance
3
Nil
Nomination & Remuneration
1
Nil
Resigned Directors
HE Hafsa Al Ulama
Nomination & Remuneration
1
Nil
Masood Mahmood
Nomination & Remuneration
1
Nil
Investment
1
Nil
H.E. Abubaker Al Khoori
Audit & Compliance
0
Nil
Risk
0
Nil
Meetings of the Board of Directors during 2021:  
Date of the Meeting
Number of Attendees
Number of Attendances 
by Proxy
Names of Absent 
Members
1
14 February 2021
5/7
1
1 vacancy
2
10 March 2021
6/7
0
1 vacancy
3
9 May 2021
7/7
0
-
4
11 August 2021
7/7
0
-
5
10 November 2021
7/7
0
-
Number of Board resolutions taken by circulation during 2021:
Dates
Number of Resolutions by Circulation
1
11 January 
2
2
4 March
3
3
31 March
1
4
20 April
1
5
29 April
3
6
29 June
2
7
26 July
1
8
6 September
1
9
30 September
1
10
18 November
1
11
30 December
5
Duties and Functions Assigned to Executive Management
The responsibilities of the Board and 
executive management differ from each 
other. The Board sets the framework 
for executive management, who in 
turn is responsible for SHUAA’s day-
to-day operations. The Board sets 
53     SHUAA Annual Report 2021

Executive Management Salaries and Payouts 
Position
Joining date *
Aggregate Salaries 
and allowances 
paid for 2021
(AED in Million)
Aggregate 
Bonuses paid
for 2021**
(AED in Million)
Any other 
Bonuses (cash/
in kind) due in 
future
1
Chief Executive Officer
09/01/2011
4.1
4.4
N.A.
2
Chief Operating Officer
12/04/2015
1.7
0.9
N.A.
3
Chief Financial & Risk Officer
03/01/2018
1.9
0.9
N.A.
4
Chief Legal & Compliance Officer
13/07/2014
1.5
0.9
N.A.
5
CEO Real Estate
14/02/2021
1.5
0.9
N.A.
* Date of joining ADFG. The mentioned executives were appointed under SHUAA post-merger with ADFG as per SHUAA market disclosure on
October 7th, 2019.
**Will be paid in April 2022
1 Dotted line to CLCO
2 Dotted line to CEO
3 Compliance function reports to ACCB, Legal function reports to CEO
4 With reporting to ACCB
5 CFRO to CFO title change effective 1 Feb 2022
6 Risk Management reports to the RCB and CEO effective 1 Feb 2022
7 Corporate Investments includes Chief Digital Officer, parted in Jan 2022
Chief Legal & 
Compliance
Officer3
Legal
Compliance4
Board of
Directors
Chief Executive 
Officer
Investment 
Banking
Debt
Public & 
Private Markets
Client Coverage
Internal 
Audit2
Risk
Management6
Nomination & 
Remuneration 
Committee
Corporate 
Secretary1
Risk Committee
Audit & 
Compliance 
Committee
Investment
Committee
Chief Financial 
Officer5
Accounts & 
Control / Tax
Financial Planning 
& Analysis
Treasury
 Investor
Relations
Risk
Chief Operating 
Officer
Human 
Resources
Marketing & 
Communications
Information 
Technology
Administration & 
Procurement
Operations
Corporate Investments7
CEO of
 Real Estate
SHUAA’s vision and strategic goals and 
objectives, provides oversight of its 
management and holds management 
accountable for its implementation. 
The senior executive management acts 
within the delegation of authorities and 
limits set by the Board. 
Delegated Person
Authority Delegated
Tenure of Delegation 
1
Jassim Alseddiqi
Delegation of authority to run the day-
to-day business of the Company and 
Subsidiaries and to represent them before 
necessary regulators, authorities and other 
entities.
The POA is renewed every three years, and 
will be valid for that time unless revoked by 
the Board after which it will cease to have 
any legal effect. 
HQ Organization Structure
Related Party Transactions
As per the SCA’s definition of “Related 
Parties Transactions” set out in SCA’s 
Resolution No. 7 of 2016 concerning 
standards of institutional discipline 
and governance of public shareholding 
companies, Related Parties are defined 
as the Chairman and members of the 
Board of Directors of the Company, 
members of the senior executive 
management of the Company, 
employees of the Company, and the 
companies in which any of such persons 
holds 30% or more of its capital, as 
well as subsidiaries, sister companies 
or affiliate companies. Based on that, 
SHUAA was not a party to any Related 
Party Transactions during 2021.
54     SHUAA Annual Report 2021

4. Auditors 
External Auditor
2. PricewaterhouseCoopers (PWC) 
(from 11 July 2019 onwards)
With offices in 157 countries and more than 276,000 employees, PWC is among the leading professional services networks in the 
world. They help organizations and individuals create the value they’re looking for, by delivering quality in assurance, tax and 
advisory services.
Name of Audit  Firm
PricewaterhouseCoopers
Number of years served as an external audit firm for the Company
2 years 9 months (since July 2019)
Name of the Audit Partner
Rami Sarhan
Number of years served as Audit Partner for the Company
2 years 9 months (since July 2019)
Total fees for auditing the financial statements of 2021
AED 1,490,231
The fees and costs of the special services other than the auditing of the financial 
statements in 2021
AED 661,005
The details and nature of other services provided by the Company’s Audit Firm
Due Diligence Services and Tax 
advisory services 
Other services performed by audit firms other than the Company’s auditors in 2021
Deloitte & Touche (ME) – Accounting 
Advisory and Support Services
Grant Thornton - VAT Advisory Services  
Ernst & Young Middle East – Accounting 
Advisory and Support Services
Mazars – Accounting Support Services
PWC reviewed interim consolidated 
financial information for the quarters 
ended 31 March 2021, 30 June 2021, 30 
September 2021 and audited annual 
consolidated financial statements for 
financial year ended 31 December 2021 
and did not make any Qualified Opinion.
The scope of the audit for the 2021 
financial year, as outlined in their 
engagement plan was:
  To conduct an audit of annual 
consolidated financial statements 
of SHUAA for the year ending 31 
December 2021 in accordance with 
International Standards on auditing 
issued by International Federation of 
Accountants.  .  
  To undertake quarterly review of interim 
condensed consolidated financial 
information in accordance with the 
International Standard on review 
engagements issued by International 
Federation of Accountants. 
5. Audit & Compliance 
Committee of the Board
The main duties of the Audit & 
Compliance Committee of the Board 
(ACCB) are to monitor the Company’s 
financial statements, to define, review, 
monitor and recommend changes to 
the Company’s financial, compliance 
and risk control systems in line with the 
corporate strategy, and to maintain the 
relationship and be the direct point of 
contact with the Company’s external 
auditors. 
Mr. Ahmed Bin Braik is the Chairman 
of the Audit & Compliance Committee 
and he acknowledges his responsibility 
for the committee affairs, review 
of its mechanism and ensuring its 
effectiveness.
ACCB structure and composition
Name of Member
Designation
Nature of Membership
Appointment / 
Resignation date
Meeting 
Attendance
Ahmed Bin Braik
Chairman
Non-Executive, Independent
Appointed on 02.01.2017
5/5
Christopher Ward
Member
Non-Executive, Independent
Appointed on 27.04.2020
5/5
Lamis Al Hashimy 
Member
Non-Executive, Independent
Appointed on 22.04.2021
3/5*
Maha AlQattan
Member
Non-Executive, Independent
Appointed on 22.04.2021
3/5*
Resigned Members
H.E. Abubaker Al 
Khoori
Member
Non-Executive, Independent
Appointed on 13.02.2020
Resigned on 01.02.2021
0/5*
* equaling the number of meetings held during their tenure in 2021
ACCB meetings
The meetings held during 2021 are as follows:   14 February       10 March        9 May        11 August        10 November
55     SHUAA Annual Report 2021

6. Nomination & 
Remuneration 
Committee of the Board
The main duties of the Nomination and 
Remuneration Committee of the Board 
(NRCB) are to:
a) Determine the Company’s staffing 
needs at the executive and employee 
levels and the basis for selection of 
executives and employees.
b) Develop and annually review the 
human resources and training policies 
of the Company.
c) Oversee the procedures for 
nominations to the Board while 
regularly reviewing its structure, size 
and composition.
d) Develop and review annually the 
ongoing suitability of the Company’s 
policy for remuneration and benefits 
for the Company’s Chief Executive 
Officer, Board and employees.
e) Ensure that the remuneration and 
benefits awarded are reasonable and 
aligned with the performance of the 
company. 
Ms. Maha AlQattan  is the Chairperson 
of the Nomination and Remuneration 
Committee and she acknowledges her 
responsibility for the committee affairs, 
review of its mechanism and ensuring its 
effectiveness.
NRCB structure and composition:
Name of Member
Designation
Nature of Membership
Appointment/ Resignation Date
Meeting 
Attendance
Maha AlQattan
Chairperson
Non-Executive, 
Independent
Appointed on 22.04.2021
2
Ahmed Bin Braik
Member
Non-Executive, 
Independent
Appointed on 02.01.2017
2
Badr Al-Olama
Member
Non-Executive, 
Independent
Appointed on 22.04.2021
2
Resigned Members
H.E. Hafsa Al Ulama
Chairperson
Non-Executive, 
Independent
Appointed on 14.11.2019
Term ended on 06.03.2021
1/2*
Masood Mahmood
Member
Non-Executive, 
Independent
Appointed on 14.11.2019
Term ended on 06.03.2021
1/2*
* equalling the number of meetings held during their tenure in 2021
NRCB meetings
The NRCB meetings held during 2021 are as follows:
 9 March       8 November 
 7. Other Board Committees
The other Board committee are as follows:
Risk Committee of the Board
The main duties of the Risk Committee of 
the Board (RCB) are to:
a) Define the corporate risk appetite 
within the corporate strategy across 
market, credit and liquidity risk and 
recommend limits and rules to the 
Board;
b) Review the Company’s current 
exposure to the market, credit and 
liquidity risk and recommend actions 
to the Board;
c) Assess non-operational risks such as 
reputational risk and strategic risk 
and raise any concerns to the Board 
and make recommendations as 
required;
d) Oversee the Company’s processes 
and policies for managing risk 
and the balance sheet and make 
recommendations to the Board as 
required.
e) Review operational risk and internal 
control weaknesses accepted 
by management and make 
recommendations to management or 
the Board as required;
f) Review the effectiveness of the 
Company’s operational risk 
management and internal control 
frameworks; and
g) Review the operational risks identified 
by management as high risk and 
determine whether additional action 
is required over and above that 
agreed by management; 
Mr. Christopher Ward is the Chairman 
of the RCB and he acknowledges his 
responsibility for the committee affairs, 
review of its mechanism and ensuring its 
effectiveness.
RCB structure and composition:
Name of Member
Designation
Nature of Membership
Appointment/ Resignation date
Meeting 
Attendance
Christopher Ward
Chairman
Non-Executive, 
Independent
Appointed on 15.01.2020
6
56     SHUAA Annual Report 2021

Murshed Alredaini
Member
Non-Executive, 
Independent
Appointed on 11.11.2020
3/4
Badr Al-Olama
Member
Non-Executive, 
Independent
Appointed on 22.04.2021
3/4*
Lamis Al Hashimy
Member
Non-Executive, 
Independent
Appointed on 22.04.2021
3/4*
Resigned Members
H.E. Abubaker Al 
Khoori
Member
Non-Executive, 
Independent
Appointed on 13.05.2020
Resigned on 01.02.2021
0/4*
* equalling the number of meetings held during their tenure in 2021
RCB meetings
The RCB meetings held during 2021 are as follows:    9 March       5 May       4 August      3 November   
Investment Committee of the Board
The main duties of the Investment 
Committee of the Board (ICB) are to:
a) Oversee, direct and review the 
management of the Company’s 
investment portfolio in accordance 
with the investment strategy and 
guidelines proposed by this Committee, 
and reviewed and approved by the 
Board, and within approved Risk Limits;
b) Review and approve as authorized 
by the Board proprietary investment 
opportunities and related decisions 
(either entry or exit) proposed by 
Investment Management Committee 
(within approved limits), providing a 
forum to discuss and debate the merits 
and risks of a particular investment;
c) Review transactions with the Company 
that appear to have a related-party 
nature, managing conflict of interest 
and submitting recommendations 
concerning such transactions to the 
Board before proceeding in engaging 
in these related transactions following 
recommendations from ACCB and RCB;
d) As part of the regular investment 
monitoring, valuations and exit 
strategies should be discussed and 
formally recommended for approval to 
the Board;
e) The Committee will recommend 
changes to the investment strategy 
and guidelines as appropriate and 
recommend for approval to the Board; 
and;
 f) The Committee will review and oversee 
the Company’s investment policies and 
guidelines, at least annually;
Mr. Badr Al-Olama is the Chairman 
of the ICB and he acknowledges his 
responsibility for the committee affairs, 
review of its mechanism and ensuring its 
effectiveness.
ICB structure and composition:
Name of Member
Designation
Nature of Membership
Appointment /
Resignation date
Meeting 
Attendance
Badr Al-Olama
Chairman
Non-Executive, 
Independent
Appointed on 22.04.2021
3/4*
Christopher Ward
Member
Non-Executive, 
Independent
Appointed on 13.05.2020
4/4
Murshed Alredaini
Member
Non-Executive, 
Independent
Appointed on 09.11.2020
4/4
Lamis Al Hashimy
Member
Non-Executive, 
Independent
Appointed on 22.04.2021
3/4*
Resigned Members
Masood Mahmood
Chairman
Non-Executive, 
Independent
Appointed on 14.11.2019 
Term ended on 06.03.2021
2
* equalling the number of meetings held during their tenure in 2021.
ICB meetings
The ICB meetings held during 2021 are as follows:
   7 March       4 May       2 August       2 November
8. Insider Trading 
Committee
The Board of SHUAA has assigned the 
duties of managing, monitoring and 
supervising insider’s transactions and 
their ownerships, keeping records and 
submitting periodic reports to the 
Compliance department.
Bachir Nawar is the Chief Compliance 
Officer and he acknowledges his 
responsibility for the Compliance 
department’s affairs, review of its 
mechanism and ensuring its effectiveness.
Members of the Compliance department 
are:
•	 Bachir Nawar Chief Legal & Compliance 
Officer
•	 Islam Mahrous – VP Compliance & 
MLRO
•	 Jatin Shah - Compliance Manager & 
MLRO
•	 Khaled Fenoon – Compliance Associate
57     SHUAA Annual Report 2021

The Compliance department has 
performed, among other things, the 
following duties during 2021:
•	 Prepared a comprehensive register 
for all insiders, including persons who 
may be considered temporary insiders 
who are entitled or have access to 
the Company’s material non-public 
information prior to publication;
•	 Updated the insider register and 
monitored all insider trades on SHUAA 
shares;
•	 Alerted SHUAA employees on the 
penalties they may face in case of 
failure to adhere to the Company’s 
Insider Dealing Policy; and 
•	 Notified the Securities and 
Commodities Authority and Dubai 
Financial Market of all updates to 
the insider register at the beginning 
of each financial year and of any 
amendments thereto during the 
financial year.
9. Management Committees
Several management committees are 
also in place in addition to the Board 
committees which are established in 
order to oversee the daily operations 
and business activities while adhering 
to appropriate and proper governance 
standards. The committees are the 
Assets & Liabilities Committee (ALCO), 
the Operating Committee (OPCO) and 
the Investment Management Committee 
(IMC). The committees’ Chairmen 
acknowledge their responsibility for 
the committees’ affairs, review of 
their mechanisms and ensuring their 
effectiveness.
Management 
Committee
Function of Committee
Members
Dates of Meetings / Member 
Attendance
Operating Committee 
(OPCO)
Responsible for the 
efficiency and effectiveness 
of the Company and the 
review of operational 
policies
•	 Bechara Raad (Chairman) 
•	 Bachir Nawar
•	 Joachim Mueller
•	 Ziad Mansour
•	 Adrian Merchant (Secretary) (removed 
June 2021)
•	 Mohammed Bishara (Secretary) 
(added June 2021)
1.	 18 January (4/4)
2.	 17 March (4/4)
3.	 21 April (4/4)
4.	 19 May (4/4)
5.	 16 June (3/4)
6.	 15 September (4/4)
7.	 27 October (4/4)
8.	 15 December (4/4)
Assets & Liabilities 
Committee (ALCO)
To optimize the return on 
corporate capital and 
control the balance sheet 
based on requirements 
approved by the Board
•	 Joachim Mueller (Chairman)
•	 Fawad Tariq Khan (Member)
•	 TC Yu (Member and Secretary)
•	 Adil Mustafa (non-voting member) 
(removed July 2021
1.	 21 February (4/4)
2.	 5 May (3/4)
3.	 2 August (3/3)
4.	 1 November (3/3)
Investment 
Management 
Committee (IMC)
To discuss and review the 
practice of the investment 
management activity
•	 Jassim Alseddiqi (Chairman) 
•	 Bachir Nawar 
•	 Fawad Tariq Khan
•	 Joachim Mueller
•	 Ajit Joshi
•	 Natasha Hannoun 
•	 Walid El Hindi (added June 2021)
•	 Rehan Pathan (added Sep 2021)
•	 Neeraj Singhania (Secretary)
1.	 26 January (6/6)
2.	 28 March (5/6)
3.	 27 September (6/7)
4.	 3 October (6/8)
The Chairman of each of the above-mentioned committees acknowledges his responsibility for the respective committee 
affairs, review of its mechanism and ensuring its effectiveness.
58     SHUAA Annual Report 2021

10. Internal Control 
System
SHUAA’s Board recognizes its 
responsibility for enforcing SHUAA’s 
Internal Control system and its periodic 
effectiveness check and review through 
the Audit and Risk Committee formed 
by the Board of Directors. SHUAA 
confirms that it is in compliance with 
SCA Chairman of Authority’s Board 
of Directors’ Decision no. (3 of 2020) 
concerning Approval of Joint Stock 
Companies Governance Guide, and 
that no material irregularity has 
occurred during the course of 2021. In 
all cases, the Internal Control system 
deals with any issues facing the 
company while covering the following:
  Identifies and classifies the nature 
of the problem in terms of the risk 
level, through determining the scale 
of the problem and the extent of its 
negative impact
  Communicates with the concerned 
departments through the division 
heads and the Chief Executive Officer 
to discuss actions to contain and 
resolve any problems or concerns
  Reports the problem and the 
proposed relevant recommendations 
to the Audit & Compliance Committee 
and Risk Committee of the Board, 
which in turn, after discussing and 
evaluating the situation, submits 
it to the Board in order to make 
appropriate decisions 
  Follow-ups on the implementation of 
its recommendation by ensuring that 
the Board of Directors resolutions in 
this regard are implemented
  Communicates with the external 
auditor, if necessary.
SHUAA’s Internal Control system 
consists of Compliance, Risk 
Management and Internal Audit 
functions.
Compliance, Risk and Internal Audit 
departments reports on a quarterly 
basis to the Board of Directors through 
the ACCB/RCB.
SHUAA’s Board acknowledges its 
responsibility for the Company’s 
Internal Control System, review of 
its mechanism and ensuring its 
effectiveness through the Board 
Committees and in consultation with 
the senior executive management.
The Board shall, in particular:
a.  Adopt risk management procedures 
and ensure compliance with these 
procedures; and  
b. Analyse, evaluate and approve 
the effectiveness of internal risk 
management procedures and 
internal controls on a regular basis.
Chief Legal & Compliance 
Officer
Bachir Nawar is the Chief Legal & 
Compliance Officer of the Group and 
manages the multijurisdictional legal 
and compliance requirements of the 
business. With 20 years of experience, 
he focuses on transactional cross 
border work, strategic distressed 
acquisitions.
Known for his expertise in the area of 
governance and shareholder activism, 
Bachir specializes in implementing 
portfolio turn-around strategies. 
Bachir holds an LLB from Saint Joseph 
University, Beirut, Lebanon.
Compliance Officer 
Islam Mahrous is the Vice President for 
the Compliance and AML department. 
He has over 14 years of experience 
in the financial services sector and 
compliance advisory across the UAE 
and Egypt. 
Islam has worked for the Egyptian 
Financial Regulatory Authority for 
7 years in the capacity of Senior 
Financial Regulator and Capital 
Markets Specialist. He is accredited 
as a Compliance Officer and MLRO by 
the UAE Securities and Commodities 
Authority. Islam holds a BSc (Hons) in 
Auditing and Accounting from Cairo 
University, Egypt.
Head of Internal Audit
Olivier Brochard is the Head of Internal 
Audit and has close to 20 years of 
experience within the investment 
fund and asset management industry. 
Prior to joining the Group, he worked 
for 14 years at State Street where 
he served as EMEA Internal Audit 
Director, responsible for State Street’s 
asset management arm. Olivier 
was also the Head of Internal Audit 
for State Street Banque France, a 
function he established in 2008. Prior 
to State Street, Olivier was at Deloitte 
Luxembourg, where he led various 
audit assurance projects for large 
investment funds and private banks. 
Olivier holds a German and French 
double degree from ESB Reutlingen 
and Reims Management School. 
He also holds two international 
certifications: Certified Internal Audit 
(CIA) and Certified Management 
Assurance (CRMA).  
Chief Risk Officer
Joachim Mueller is the Chief Financial 
Officer responsible for driving 
operational excellence across the 
Group’s Finance, Treasury, Tax, and 
Investor Relations functions as well 
as for providing budgeting, decision-
making and reporting support to the 
Group’s portfolio companies. In his 
capacity as interim Chief Risk Officer, he 
is responsible for identifying, analysing 
and mitigating company risk as well as 
developing and improving the Group’s 
risk management framework. 
Joachim has more than 20 years 
of international experience across 
Investment Banking and Finance. Prior 
to joining the Group, Joachim held 
several senior positions at Deutsche 
Bank in Frankfurt and London, 
including CFO for EMEA and Group 
Head of Investor Relations. Earlier, 
Joachim was a top ranked sell-side 
equity research analyst at JP Morgan, 
HSBC and Credit Agricole Cheuvreux in 
London and Frankfurt.
Joachim holds an MSc in Investment 
Management from Cass Business 
School London, and Bachelor degrees 
in European Business Studies from 
Manchester Metropolitan University 
and University of Applied Sciences 
Bochum. He was also a guest lecturer 
at the Ludwig Maximilian University 
Munich’s Institute of Strategic 
Management.
Joachim held the position of Chief Risk 
Officer from May 2020 until January 
2022.
Head of Risk Management 
Shabana Osmani is the Head of 
Risk Management, responsible for 
developing and maintaining the 
enterprise-wide risk management 
framework for the Group, increasing 
transparency and visibility on risk 
profiles and incorporating risk 
intelligence into business decision 
making.
Shabana has over 18 years of 
experience in the Financial Services 
industry. Prior to joining the Group, 
Shabana held several positions at 
Morgan Stanley in London over a 12-
year tenor within Operations and Risk 
Management, including Operations 
Director in Equity Derivatives, Global 
Lead for Risk Process Validation, PMO 
for Global RCSA programme, and COO 
of EMEA Stress Testing, Portfolio Risk 
and Capital. Shabana also spent four 
years at ING Investment Management 
in Dubai within Operations and Risk 
Management.
Shabana holds a BSc (Hons) in 
Mathematics from Queen Mary 
University of London in the U.K., and 
a certification in International Risk 
Management.
59     SHUAA Annual Report 2021

11. Irregularities in 2021
The Company has committed no 
violations during 2021.
12. Corporate Social 
Responsibility (CSR) 
 We are committed to continuously 
strengthening SHUAA Capital’s 
position as a company that stands 
for and contributes to the good of 
its community and environment, 
and hence every year we renew our 
commitment towards past initiatives 
and explore new avenues and 
partnerships for further impactful and 
long-standing contributions. 
In 2022, we are planning to establish a 
function to coordinate our ESG efforts 
covering what we do as a company 
to have the right governance in place 
to meet the increased need of our 
many stakeholders and regulators in 
making the right decisions from an ESG 
perspective and being transparent 
about what we do.
Diversity & Inclusion
Our nationality representation has 
grown to 24 countries, and our female 
gender representation has grown to 
28%. We continue our commitment 
towards making SHUAA Capital 
reflective of the diversity of its country 
of founding and headquarters, the 
United Arab Emirates, through inclusive 
hiring standards and processes.
Zero Plastic; Near-Zero Paper 
The company continues its stride 
towards a zero plastic and near-zero 
paper environment across its premises, 
through policies and initiatives such 
as end-to-end digitization across our 
internal workflows and the use of 
recyclable/reusable bottles.
Reduced Office Space
In 2021 as we returned to the office on 
a full-time basis following the Covid-19 
global pandemic, we reduced our Abu 
Dhabi office space by ~33%, creating a 
more collaborative environment for our 
employees and reducing our carbon 
footprint.
Summer Internship Program for 
Emiratis
Last year, 55% of our internship intake 
were Emirati students from reputed 
local and international universities. We 
continue our efforts to introduce even 
more Emirati students to the exciting 
opportunities that our industry and 
firm have to offer for their future career 
paths, and to become their employer of 
choice after graduation. 
13. General Information
Share Trading Information
The table below sets out the price of the stock (closing, highest, lowest) during each month in 2021:
Month
Closing Price
High
Low
Jan
0.714
0.769
0.668
Feb
0.68
0.740
0.665
Mar
0.66
0.714
0.621
Apr
0.627
0.668
0.610
May
0.62
0.645
0.603
Jun
0.606
0.640
0.600
Jul
0.77
0.790
0.593
Aug
0.705
0.800
0.690
Sep
0.672
0.726
0.658
Oct
0.68
0.690
0.656
Nov
0.719
0.828
0.671
Dec
0.685
0.756
0.656
The chart below provides the comparative analysis with the market index and sector one:
Note: Chart rebased to 100 from the beginning of 2021
Source: DFM
20
40
60
80
100
120
140
160
Jan-2021
Feb-2021
Mar-2021
Apr-2021
May-2021
Jun-2021
Jul-2021
Aug-2021
Sep-2021
Oct-2021
Nov-2021
Dec-2021
DFMGI
SHUAA
F-SERVICES
60     SHUAA Annual Report 2021

The tables below provide the updated shareholding structure (individuals, companies, governments) with breakdown of 
nationals, GCC, Arabs and foreigners:
Shareholder Category
Percentage of Shares Held
Individual
Companies / Governments
Total
Local (UAE)
46.77%
43.56%
90.32%
GCC
2.43%
0.88%
3.31%
Arab
3.26%
0.23%
3.49%
Foreign
1.34%
1.55%
2.88%
Total
53.79%
46.21%
100%
As of 31/12/2021, the following shareholders were holding more than 5% of the share capital of the Company:
Name
Qty
% Qty
Jassim Mohamedrafi Alseddiqi Alansaari
760,461,825
29.99
Direct Access Investment LLC
692,134,584
27.30
Al Baher Real Estate Development LLC
211,350,000
8.33
Shareholders distribution by the size of equity as of 31/12/2021:
Share(s) Owned
Number of 
Shareholders
Number of 
Share Held
% of the Shares 
Held of the Capital
Less than 50,000
8,247
39,398,513
1.554
From 50,000 to less than 500,000
699
109,619,716
4.323
From 500,000 to less than 5,000,000
187
236,504,955
9.327
More than 5,000,000
33
2,150,196,816
84.796
Investor Relations
SHUAA focuses on providing 
transparent and consistent information 
and interactive communication. The 
Investor Relations team strive for 
an open dialogue with the financial 
community, investors and all key 
stakeholders to enhance understanding 
of the business as well as to explain the 
associated risks and opportunities. The 
Group is committed to providing regular 
updates on key value drivers business 
strategy and key ratios used by the 
Group to track its own performance. 
We are dedicated to providing true, 
fair and up-to-date information to 
every interested stakeholder so that 
the share price reflects the inherent 
value of the Group. This is showcased 
by our periodic earnings calls that are 
conducted on a quarterly basis after 
the disclosure of our financial results. 
These calls are open to all shareholders 
and financial analysts and the call 
is conducted in an open manner 
where we encourage participants 
to ask questions directly to senior 
management.
Furthermore, we respond to daily 
queries from shareholders and 
analysts through our investor relations 
team and have a section of our 
website which is dedicated to our key 
stakeholders which includes all of our 
financial results presentations, annual 
reports and contact information. Our 
registrars (First Abu Dhabi Bank) also 
have a team dedicated to answering 
shareholder queries in relation to 
technical aspects of their holdings 
such as dividend payments (paid 
or unpaid). Investor Relations also 
provides regular reports and feedback 
to the executive team and the Board on 
key market issues, the share price and 
shareholder concerns. Any significant 
concerns raised by a shareholder in 
relation to the Company and its affairs 
are communicated to the Board. This 
ensures the views of our investors 
are taken into account when Board 
decisions are taken.
Investor Relations Manager
Omar Abu Khadra has been the Senior 
Investor Relations Manager from 
January 2019 until January 2022.
Omar has over 10 years of professional 
experience, starting his career as a 
member of the Graduate Program at 
Barclays in London.  He continued to 
work in London for 5 years in various 
roles with Barclays before focusing on 
Private Equity and joining Hamilton 
Lane as a member of the Relationship 
Management team.  Prior to joining 
ADFG (pre-merger with SHUAA), Omar 
spent 3+ years in the Gulf as part 
of the Placement and Relationship 
Management team at Investcorp 
in Bahrain, working with private 
and institutional clients in servicing 
their alternative asset investment 
portfolios. Omar holds a Bachelor’s in 
International Management and French 
from the University of Bath in England.
Contact details:
E-mail: investorrelations@shuaa.com
Phone: +971 2 610 8200
SHUAA’s website: www.shuaa.com/
investor-relations
61     SHUAA Annual Report 2021

14. General Assemblies 
– Special Resolutions
SHUAA conducted 1 General Assemblies 
during 2021 as stated below:
  22 April 2021 (Annual General 
Assembly) where the following special 
resolution was passed:
Approval of the amendment and 
restatement of articles number 15, 17, 
27, 30, 33, 37, 42, 46, 47, 49, 50, 63 of the 
Company’s Articles of Association to 
comply with the provisions of Federal 
Decree Law No. 26 of 2020 concerning 
amendments to the commercial 
companies Federal Law No. 2 of 2015.
  15. Corporate 
Secretary 
  Nazish Esmail has been a member of 
SHUAA’s legal department since May 
2007 and has held the role of Board/
Corporate Secretary since May 2020. 
She is a certified board secretary from 
Dubai Financial Market/Hawkamah 
Institute for Corporate Governance.
Brief on the Job Description of 
the Corporate Secretary
a.	 Documenting the Company’s Board 
meetings, including discussions that 
took place during these meetings, 
places and dates of these meetings 
and starting and ending times. 
Recording resolutions of the Board 
and voting results and filing these 
in an organized manner, including 
the names of attendees and any 
expressed reservations (if any). These 
minutes shall be signed by all the 
Board members who attended these 
meetings;
b.	 Collecting and organizing all 
the reports and materials to be 
embedded to the Board’s pack;
c.	 Providing members of the Board with 
the agenda of the Board’s meeting 
along with related presentations, 
papers, documents, information 
collected from relevant departments 
and clauses requested by any 
member of the Board that will be 
presented and discussed during the 
Board’s meeting;  
d.	 Making sure that members of the 
Board comply, implement and track 
actions approved by the Board;
e.	 In advance, notifying members of the 
Board with Board meeting dates and 
setting up the yearly Board meetings 
schedule;
f.	 Submitting a draft of the minutes 
to members of the Board to express 
their opinion and comments thereon 
before signing it;
g.	 Making sure that the Board 
members, completely and 
immediately, receive the minutes of 
the Board’s meetings, information 
and documents related to the 
Company once these are finalized;
h.	 Informing the Company’s executive 
management about the resolutions 
of the Board and its committees 
while tracking and reporting their 
implementation;
i.	 Supporting the Board for the 
evaluation process;
j.	 Coordinating between members 
of the Board and the executive 
management;
k.	 Regulating the disclosure record 
of the Board and the executive 
management while providing 
assistance and advice to members 
of the Board; and 
l.	 Liaising with the other Board and 
management committee secretaries 
in order to collect any feedback that 
needs to be shared with the Board. 
Emiratisation Percentage
The Emiratization percentage for the 
Group’s UAE-based employees was 
5% as of 31st December 2021, 1% as of 
31st December 2020, and 2% as of 31st 
December 2019. 
Material Events and Respective 
Disclosures
  Resignation of Deputy CEO Mr. 
Mustafa Kheriba
  SHUAA invests in Anghami – MENA’s 
leading technology streaming service
  SHUAA led consortium successfully 
buys out AED1.13 billion debt of Dubai 
based Stanford Marine Group
  SHUAA managed Nujoom funds 
announce first dividend
  SHUAA well placed to support 
companies seeking local listing under 
new decree
  Resignation of board member Mr. 
Abubaker Al Khoori
  SHUAA secures two awards on back of 
strong 2020
  SHUAA successfully led the private 
placement transaction of Anghami
  SHUAA reported audited FY2020 net 
profit of AED125 million and EBITDA of 
AED349 million  
  SHUAA Capital leads USD 50 million 
Sukuk funding round for Pure Harvest 
Smart Farms
  Appointment of CEO Real Estate Mr. 
Walid El-Hindi
  Approval of cash dividends for the 
year 2020 of 3 fils per share totalling 
AED 76.07 million
  SHUAA sells 20% stake in Mirfa 
International Power and Water 
Company 
  Q1 2021 profits hit 10-year high with 
net profit attributable to shareholders 
of AED 25 million 
  SHUAA sold its 3.8% stake in Khaleeji 
Commercial Bank
  Subsidiary Stanford Marine Group 
secures US$45 million bank financing 
  Q2 2021 net profit attributable to 
shareholders of AED 29 million
  SHUAA plans to complete and deliver 
£2 billion worth of property projects 
in London through its wholly-owned 
subsidiary Northacre
  SHUAA recognized as ‘Best Integrated 
Financial Services Company’ in 2021
  SHUAA invests in Swiss pharma supply 
chain company SkyCell
  SHUAA managed Goldilocks Fund 
achieves 35% return in nine months 
and 158% return since inception
  SHUAA’s insurance assets under 
management grow to USD 136 million
  Q3 2021 net profit attributable to 
shareholders of AED 35 million.
Innovative Projects and 
initiatives
Successful implementation and 
adoption of the ERP (Enterprise 
Resource Planning) system across the 
Group, leading to synergies particularly 
between HR, Procurement, IT and 
Finance functions, and to an enhanced 
control over financial reporting 
processes.
Decision taken to introduce a board 
portal software to further enhance 
digitization and security within the 
Company.
62     SHUAA Annual Report 2021

RISK 
MANAGEMENT
An overview of our risk management framework, including the 
structure for how risks are identified, measured, monitored and 
reported internally as well as the policies that govern them.
63     SHUAA Annual Report 2021

Introduction
Due to the nature of our business, SHUAA will be exposed to some form of credit, liquidity, market, 
counterparty and operational risk. Consequently, it is essential for there to be an ongoing process of 
identification, measurement, monitoring and reporting of these risks to protect the interests of clients 
and shareholders and maintain the soundness of the business.
Risk Management Structure and 
Framework
The Board of Directors recognizes the 
importance of managing risk and is 
ultimately responsible for defining the 
risk appetite of the Company. The Board 
of Directors set Company-wide limits 
and rules to define risk appetite around 
credit, liquidity, market, counterparty 
and operational risk based on 
recommendations from the Board’s Risk 
Committee.
These limits and rules define the firm-
wide risk governance framework to 
which management must adhere. The 
management committees are then 
responsible for setting more specific 
limits and rules at the business and 
subsidiary levels to ensure adherence 
to the Company-wide risk appetite.
Board of Directors
Management Committees
(OPCO, ALCO, IMC)
Business Functions
Risk Committee of 
the Board (RCB)
Risk 
Management 
Internal 
Audit
Audit and Compliance 
Committee of the Board (ACCB)
Monitoring 
financial and 
non-financial risks
Risk Management Structure and Framework
High level risks and 
limit/rule breaches
Independent audit 
reports
Approved risk limits 
and rules
Escalation of 
key issues
Recommended risk 
limits and rules
Known risks and 
issues
Bespoke business 
policies
64     SHUAA Annual Report 2021

Credit and Counterparty Risk
Credit and counterparty risk is the 
risk of loss due to default. Based on 
the limits and rules set by the Board 
of Directors, SHUAA’s Asset & Liability 
Committee (“ALCO”) sets detailed 
rules across all relevant business lines. 
These include, but are not limited to, 
rules on providing credit, collateral 
requirements, concentration risk and 
counterparty gradings. Adherence to 
rules is monitored on a daily basis by 
Company Risk Management and the 
status reported as required.
Liquidity Risk
Liquidity risk is the risk that the 
Company will be unable to meet 
its liabilities when they fall due. The 
Company’s approach aims to always 
have sufficient liquidity to meet its 
liabilities when due, without incurring 
unacceptable losses and without 
materially affecting the return on 
capital. Consequently, the Board of 
Directors set limits and rules around 
liquidity risk such as liquidity ratios 
and cash balance requirements which 
are more defined at business and 
subsidiary level by the ALCO.
The ALCO collates the projected 
cash flow and liquidity profiles of its 
financial assets and financial liabilities 
and continually monitors to identify 
any potential shortfalls in the short, 
medium or long term.
Market Risk
Market risk is the change in value of 
assets and liabilities due to changes 
in the market, such as interest rate, 
exchange rates, equity prices and 
credit spreads. The Company market 
risk appetite is defined by the limits 
and rules set by the Board of Directors. 
Based on these limits and rules, the 
relevant management committee sets 
business-specific limits and rules to 
clearly define the Company-wide risk 
appetite. 
Tools used to measure and monitor 
market risk vary depending on the 
type of exposure and include, but are 
not limited to, VaR, RAROC, stress tests 
and risk vs. return ratios. Market risk 
levels are monitored intra-day by Group 
Risk Management and the status 
reported daily to senior management. 
Any breaches of the limits and rules 
are reported to the ALCO and Risk 
Committee of the Board.
Financial and Non-Financial Risk Framework
Recommend Risk 
Limits and Rules
Delegation of 
Authorities
Risk Committee of the 
Board (RCB)
Board of Directors
Financial Risk
Non-Financial Risk
Asset & Liability 
Committee (ALCO)
•	 Credit Policy
•	 Counterparty Risk Policy
•	 Credit Trading Policy
•	 Treasury Policies
Investment Management 
Committee (IMC)
•	 Public Markets Policy
•	 Private Markets Policy
•	 Debt Policy
•	 Real Estate Policy
•	 Investment Banking Policy
•	 Investment Management 
Policy
Operating Committee 
(OpCo)
•	 Op Risk & Control Policy
•	 Event Reporting Policies
•	 Operations Policies
•	 New Initiatives Policy
•	 Business Continuity and 
Disaster Recovery Policies
•	 Outsourcing Policy
•	 Legal & Compliance Policies
•	 HR & IT Policies
•	 Finance Policies
65     SHUAA Annual Report 2021

Operational Risk
Operational risk is the risk related 
to people, process, controls, systems 
or external events. The Company 
recognizes that operational risk is 
not just the direct risk of financial loss 
from an unexpected event, but also 
the indirect impact of not achieving 
strategic goals: for example, lost 
revenue due to not attracting required 
talent, inefficient processes and 
controls, uncompetitive systems or the 
inability to react to market changes.
 
Consequently, the operational risk 
management framework comprises 
two core parts, the risk control 
framework and the operational 
risk management framework. The 
former aims to mitigate the risk of 
direct and indirect financial loss by 
ensuring there is a sound control 
environment. This achieved by using 
a Risk Control Self-Assessment (RCSA) 
process to proactively identify control 
weaknesses, complemented by a 
formal event reporting process.
 
The accuracy and completeness of the 
RCSA process is then independently 
validated by Internal Audit. The 
operational risk management 
framework aims to optimise Company- 
wide operational risk levels by having 
a structured process in place to 
capture risk drivers so threats and 
opportunities can be assessed.
Internal Control Framework
Risk Limits
 
Approved by the Board 
of Directors based on 
recommendations from 
the Risk Committee of 
the Board 
Policies
 
With the approved risk 
limits, management 
committees are enabled 
to set bespoke business-
specific policies
RCSA Process
 
Identify the key risks 
and controls Validate 
the completeness and 
accuracy
Assign responsibility 
to individuals for each 
risk, control and policy 
section
Risk Reporting
 
Any risks and 
weaknesses are 
reported to the 
relevant management 
committee to 
determine action
Internal Audit are provided 
with the RCSA to validate 
accuracy of reporting
66     SHUAA Annual Report 2021

SUSTAINABILITY
At SHUAA Capital we strive to deliver value in a safe, secure, and 
environmentally and socially responsible manner for all our 
stakeholders. Our core values aim to apply the highest standards 
of conduct, accountability, transparency and fairness in 
everything that we do. 
67     SHUAA Annual Report 2021

Introduction
At SHUAA Capital psc (“SHUAA” or the “Company”) we strive to deliver value in a safe, secure, and 
environmentally and socially responsible manner for all our stakeholders. Our core values aim to apply 
the highest standards of conduct, accountability, transparency and fairness in everything that we do. 
This approach is built on an integrated corporate governance framework with clear accountability 
channels, transparency requirements and independence thresholds. 
As a leading regional asset 
management and investment banking 
platform we have an important part 
to play in shaping the future for all our 
stakeholders. Our focus on doing the 
right thing for our clients, our people 
and wider society lies at the heart 
of our culture; we are committed to 
delivering sustainable value for our 
clients. Our purpose is to provide 
excellent investment performance 
and sustainable value through 
active management and innovative 
investment solutions. 
The way in which we invest our clients’ 
capital not only shapes the financial 
returns we achieve for them, but 
also the type of impact that their 
investment portfolio may have. We are 
beginning to see a fundamental shift in 
how companies are viewed and valued 
as a result of the change in relationship 
between financial and non-financial 
factors.
We have emerged stronger from the 
COVID-19 pandemic. As a Company 
and as a steward of our clients’ capital 
where we continued to integrate sound 
practices and investments into our 
operations and seizing opportunities 
presented to us during the pandemic.
SHUAA and its employees have always 
sought to be a responsible financial 
institution. Post-merger with Abu Dhabi 
Financial Group in 2019, our focus 
now is on the transformation phase 
of our Company which will allow us 
to implement a framework around 
developing a robust sustainability and 
ESG strategy. 
Environmental, Social, 
and Governance (ESG) 
and Sustainability
ESG helps investors better assess 
and understand potential risks and 
opportunities with respect to a 
company’s long-term sustainability.
At SHUAA, we see ESG consideration 
playing an ever more vital role in the 
region as the ESG landscape continues 
to evolve, primarily being driven by 
investors, COP28 being hosted in the UAE 
in 2023, and a recent surge in interest by 
policy makers, regulators, and others. 
We recognize the growing demand for 
greater transparency and disclosure 
in relation to ESG and we are planning 
to establish a dedicated function to 
develop an ESG strategy and roadmap, 
and to drive our ESG initiatives. In order 
to have the desired impact and effect, it 
is clear that we need to align the views 
of all stakeholders, set the path for ESG 
within SHUAA, and transparently report 
to our shareholders and clients. We see 
our roadmap to integrate ESG into the 
fabric of the company involving the 
below:
  Establish a foundation and gain 
board/senior management buy-
in
  Complete a materiality 
assessment
  Review current ESG state.
  Review mandatory disclosure 
requirements and direction of 
future regulations.
  Establish ESG alignment and 
“good” state.
  Define ESG roadmap/framework
  Integrate ESG into company 
policies and processes.
  Integrate ESG into portfolio and 
investment approach
  Reporting and monitoring ESG 
activities
  Evaluation
Strategy, Objectives
& Plans
Design, Validation & 
Implementation
Reporting, Monitoring & 
Evaluation
68     SHUAA Annual Report 2021

Advantages of ESG adoption for 
SHUAA Capital
We see ESG in three unique domains 
within SHUAA: -
a) What should we do as a publicly 
listed company to embrace ESG and 
integrate ESG reporting and practices 
into our company?
b) What should we do as a socially 
responsible investor to screen 
investments and adjust our portfolio to 
support ESG initiatives?
c) What should we offer our clients 
so they can benefit and invest in ESG 
aligned companies and sectors?
Sustainability considerations present 
an opportunity for SHUAA on numerous 
levels – some of the key advantages 
and opportunities are noted below:
1
Attract capital flows and ride global sustainable finance trends
2
Promote innovation and develop sustainable products
3
Attract talent and build human capital
4
Promote a broader sense of corporate purpose and a long-term mindset
5
Better connect with investors, employees, and other stakeholders
6
Raise awareness of sustainability in the region
7
Become a leading regional platform in the space and lead by example
8
Leverage SHUAA’s history of value-based investing
Stakeholder Engagement 
and Management 
At SHUAA, we have always recognized 
that we have a responsibility to show 
our stakeholders that we are committed 
to taking action. With the growth in 
prominence of ESG and sustainability 
as a key theme and topic, we remain 
committed to integrating these 
considerations across our firm over the 
coming years. We engage frequently 
with our stakeholders to: 
  Identify all those affected by or 
interested in the project to ensure their 
inclusion in the engagement process
  Understand the view of key 
stakeholders and ensure stakeholders 
understand the impacts of our 
activities.
  Inform the public and our partners 
about our activities, being timely, 
transparent, and open
  Build relationship and trust through 
open dialogue and engagement 
  Manage expectations and concerns by 
providing a method for stakeholders to 
engage with us about their concerns 
and expectations 
  Comply with local and national 
government regulations and 
international best practices as 
defined by recognized standards and 
associations
69     SHUAA Annual Report 2021

We always seek feedback so we can address the topics raised as a priority, whether they relate to ESG 
and sustainability or otherwise. This feedback mechanism will be integral in helping us to shape and 
form our ESG and sustainability strategy and materiality assessment as a company going forward. The 
main methods in which we interact with our stakeholders are noted below:
  Emails and investor reporting
  Press releases
  Social media
  Face to face meetings
  Relationship management
  Client perception surveys
  Periodic team meetings
  Performance assessments
  Recognition and rewards
  Internal communication
  Group-wide townhalls
  Quarterly financial results
  Analysts and investors 
meeting
  Annual report
  Press releases
  AGM
  Perception survey
  IR section on our website
  Vendor relations
  Tendering process
  Tailored 
communications and 
plans with critical 
partners and vendors
  Partnerships with local 
organizations
  Cultural and social events
  Sponsorships
  Local internship and full-time 
program to harbour UAE talent
  Compliance with regulations
  Press releases
  Public reports
  Company website
COVID-19 Impact & 
Measures
We are firm believers that ESG and 
sustainability programs can be key 
components of long-term value and 
business resilience, and this is ever more 
important in the COVID-19 environment. 
COVID-19 is testing health, social, and 
economic systems in extreme ways, 
unlike other crises witnessed previously 
with respect to its pervasiveness and the 
speed at which it has affected people 
and businesses globally.
As people and organizations face 
extreme circumstances and need to 
make immediate decisions, the present 
is, understandably, often prioritized over 
the future. When possible, it is important 
to balance responding to the crisis in the 
short term with maintaining resiliency to 
other risks facing business and society in 
the long term.
We strongly believe that long-
term human capital management 
leads to better value creation. 
Employee relations as part of a high-
performance workplace has been a 
strategic imperative for the long-term 
sustainability of SHUAA. As COVID-19 
now enters its third year we have 
maintained true to our values and 
ensured employees and their families 
are supported during this crisis. As we 
started the transition back to the office, 
we have supported those employees 
with medical conditions and those 
needing to supervise their children with 
remote work flexibility, without affecting 
our highly functional and collaborative 
environment.
Despite the current COVID-19 
environment, ESG and sustainability 
considerations are more important than 
ever as they may help buffer the impacts 
of the current crisis, hasten recovery, spur 
innovation needed to navigate a ‘new 
normal’, and reduce risks to additional 
crises in the future. 
The pandemic has also revealed the 
importance of other non-financial 
factors that impact business outcomes 
and are of importance to investors, such 
as disaster preparedness, continuity 
planning and employee benefits. In 
2020, when the pandemic emerged, we 
implemented several steps to strengthen 
our balance sheet, retain our liquidity 
position, digitalized our business, 
enhanced our business continuity 
resilience program and recalibrated 
our strategy so we can continue to offer 
the best value to our shareholders and 
clients.
Business Continuity
The current environment has also 
revealed the importance of operational 
resilience and being able to continue 
operations regardless of the crisis 
scenario and to that end we have a 
mature disaster preparedness and 
continuity planning program, which 
includes annual exercises to validate 
its functioning. During 2021 and the 
various COVID-19 peaks, we swiftly and 
70     SHUAA Annual Report 2021

seamlessly shifted our workforce from 
office to remote to contain spreads and 
continued to service our investors and 
clients. 
Remote working also increases our 
cyber operational risk, therefore we have 
embarked on a new cyber strategy to 
ensure we can provide a secure and 
productive remote environment.
Responsible Investing
SHUAA prides itself on its ability to 
execute complex transactions that 
can satisfy all stakeholder needs and 
requirements. We also have a long-
standing reputation of engineering 
innovative investment products and 
solutions for our clients in order to 
deliver value. We pride ourselves on 
this ability and as ESG becomes more 
commonplace, particularly in the region, 
we expect to expand this outlook to 
‘greener’ and ESG-specific products both 
to fit our ESG strategy and to satisfy 
investor demand and appetite going 
forward.
Pure Harvest Smart Farms
A prime example of this is one of our 
recent transaction’s where SHUAA 
led a $50 million structured Sukuk for 
Pure Harvest Smart Farms, the world-
leading sustainable technology-enabled 
agribusiness based in the UAE.
This was the first time in the region that 
an early-stage business has been able 
to secure venture debt funding from 
capital markets, highlighting our unique 
capabilities to structure instruments 
which meet the objectives of the 
business as well as the strong investor 
demand for products such as for Islamic 
investments and ESG (green sukuks). 
People
SHUAA’s success is dependent on 
building and sustaining a human capital 
position of high calibre and diverse 
representation, across all functions and 
levels. Hence, we are firmly committed 
towards developing and strengthening:
  A high calibre human capital position 
of diverse representation across all 
functions and levels.
  A merit-driven culture that actively 
recognizes and rewards for 
contribution, achievement, and 
performance
  An equal and fair opportunity 
framework for recruitment, 
remuneration, development, and 
promotion regardless of differences
  A safe and respectful environment that 
upholds the well-being and dignity 
of everyone through all our dealings, 
systems, and policies (including Code 
of Conduct and Whistleblowing 
policies)
Engaging Our People
We encourage open dialogue within 
the firm, in order to ensure that opinions 
are shared, and ideas are heard, from 
everyone. Among our engagement 
platforms is our periodic Staff Town Hall, 
wherein senior management share our 
operational and financial results, provide 
updates on changes and progress 
related to the business and industry. In 
2021, we have also introduced in-person 
Ask Me Anything (“AMA”) sessions with 
members of our senior management 
to provide our new employees with 
an opportunity to engage with and 
relay their questions to our senior 
management directly.
Enabling Our People
At SHUAA, we are committed 
to sustaining an organizational 
environment which enables our people 
to reach their full potential. We are 
committed to developing and promoting 
talent from within and investing in them 
at every step of their careers.
Committed to 
Recruiting & 
Retaining the 
Best Talent
Recognition & 
Rewards
Recruiting
Learning & 
Development
Diversity & 
Inclusion
Work 
Environment
Wellness
71     SHUAA Annual Report 2021

Children Education Assistance:
  Launched in 2020, the initiative 
provides employees financial 
support for school fees
  Offered in the form of discounts 
as a result of partnerships and 
investments we make
  Comprehensive medical 
insurance
  Life insurance
Financial Support
Employee Offers
Benefits
Employment Support & Benefits
We strive to provide employment benefits that support our people’s wellbeing and livelihoods. From 
comprehensive medical insurance coverage, to our children educational assistance scheme to all 
employees, our benefits are designed to offer added comfort and ease for our employees and their 
families. 
Training & Development
We are committed to providing all our people, across all levels and functions, access to training and 
development opportunities throughout their careers with SHUAA. Through our Personal Development 
policy, we encourage colleagues to take charge of their personal development journeys. We expect that 
colleagues partake in at least one personal development course or program per year and support them 
in their pursuit of professional qualifications related to their areas of expertise. 
72     SHUAA Annual Report 2021

CONSOLIDATED 
FINANCIAL 
STATEMENTS
73     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
 
 
Consolidated Financial Statements for the year ended 31 December 2021 
 
 
 
Contents 
Pages 
 
 
 
Board of Directors’ Report 
77 - 78 
 
 
 
Independent auditors’ report 
79 - 87  
 
 
 
Consolidated statement of profit or loss 
88 
 
 
 
Consolidated statement of other comprehensive income 
89 
 
 
 
Consolidated statement of financial position 
90 
 
 
 
Consolidated statement of changes in equity 
91 
 
 
 
Consolidated statement of cash flows 
92 - 93 
 
 
 
Notes to the consolidated financial statements 
94 – 162 
Contents	
	
	
	
	
	
	
	
	
	
Pages
Board of Directors’ Report	
	
	
	
	
	
	
	
75 - 76
Independent auditors’ report	
	
	
	
	
	
	
77 - 85
Consolidated statement of profit or loss	
	
	
	
	
	
86
Consolidated statement of other comprehensive income		
	
	
87
Consolidated statement of financial position	
	
	
	
	
88
Consolidated statement of changes in equity	
	
	
	
	
89
Consolidated statement of cash flows	
	
	
	
	
	
90 - 91
Notes to the consolidated financial statements	
	
	
	
	
92 – 160 
74     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
 
 
 
BOARD OF DIRECTORS’ REPORT 
 
SHUAA Capital psc (“SHUAA” or the “Company”) and its subsidiaries, collectively (the “Group”), made 
continued progress on developing and broadening its business offering while moving towards the 
finalization of balance sheet restructuring post the merger with Abu Dhabi Financial Group in 2019. 
 
The Group’s net profit of AED 24m was down 81% from 2020, with the result affected by the decision 
to accelerate the restructuring of a legacy, illiquid investment portfolio. Similarly, EBITDA declined 
from AED 349 million in FY 2020 to AED 218 million in 2021. Our core revenues continue to show 
progress towards the high-quality revenues targeted within our strategy, with net fee and 
commission income up by 21% year on year to AED 265 million in the year, while controlling expenses 
with operating expenses up 6% year on year, with targeted strategic hiring across the business. Due 
to the impact of impairments in the year, the Company’s board of directors (the “Board of Directors”) 
are not recommending a dividend payment to the Company’s shareholders at the forthcoming 
annual general meeting (2020: 3 fils per share, a total of AED 76 million). 
 
During the year, the Group focused on strengthening its balance sheet alongside developing and 
expanding its capabilities and client offering. The Group further worked on the disposal of the assets 
within the non-core unit set up after the merger with Abu Dhabi Financial Group and closed its non-
core unit towards the end of the year. In addition, the Group proactively restructured an illiquid, 
legacy portfolio and absorbed the effects in the year. Our capabilities and client offering were 
expanded through targeted hiring of key, senior hires within the real estate investment team and the 
client coverage team. 
 
 
Segment Review 
 
 
Asset Management 
The asset management segment, which manages real estate funds and projects, investment 
portfolios and funds in the regional equities, fixed income and credit markets and provides 
investment solutions to clients, reported full-year profits of AED 71 million and revenues of AED 211 
million. 
 
The Group’s asset management activities delivered a strong performance, building on the progress 
made in 2020. The appointment of a new CEO of real estate will further expand our ability to broaden 
our offering across different geographies. The Group’s flagship Goldilocks fund continued to be active 
in public markets, identifying investment opportunities focused on high intrinsic value and company-
specific turnarounds. Within private markets, the 2020 transaction that saw the Thalassa fund 
acquire Stanford Marine Group had its first full year with strong performance in the underlying 
business creating value for the shareholders in the fund. Within Debt, launched as a vertical in 2020, 
the team successfully structured and invested in the USD 50 million sukuk issuance of Pure Harvest, 
the first Islamic venture financing debt capital market deal in the GCC. 
 
Investment Banking 
The investment banking segment, which provides corporate finance advisory, equity and debt 
capital markets, M&A expertise, private placements, structured investments and other services, 
reported a full-year profit of AED 4 million and revenues of AED 29 million for the full year, as it advised 
on a number of marquee transactions, achieving profitability and setting the foundations for growth.  
 
The segment continues to be highly active, advising clients on a range of capital raising mandates, 
including investments in SPACs, highlighting SHUAA’s capabilities in structuring financing solutions 
that meet both business objectives and growing investor demand. The February 2022 listing of 
Anghami on the NASDAQ New York via a merger with Vista Media Acquisition Company Inc. saw 
SHUAA act as lead advisor, as well as gathering commitments and leading a funding round prior to 
the merger.  
75     SHUAA Annual Report 2021

BOARD OF DIRECTORS’ REPORT (continued) 
 
We are focused on executing an investment banking strategy that leverages the synergies between 
our banking and markets franchises and operating as a nimble boutique able to respond to 
changing market dynamics 
Corporate 
 
The corporate segment, which manages principal investments, non-core assets, corporate 
developments, treasury and other shared services related to the Company, reported a full-year loss 
of AED 51 million with revenues of AED 154 million. 
 
In line with our strategy to focus on our Company’s two core business segments (asset management 
and investment banking) and strengthen our balance sheet, the Group continued to further manage 
down the assets held within its non-core unit. Since inception this unit has generated AED 188 million 
of cash proceeds for the Group. Following the progress in disposing of these assets, the non-core unit 
was closed in Q4 2021 and the residual assets transferred to principal investments, where they can 
be managed consistently with the Group’s other investments.  
 
2021 Review and 2022 Outlook 
 
During 2021 the Group continued on its aim of driving increased higher quality revenues while 
investing in a controlled manner in the business platform. The closure of the non-core unit and the 
restructuring of an illiquid portion of the balance sheet help the Group to concentrate on the path 
to future growth. The benefits of the transformational activity which took place in prior years are 
being realized, with a broader product offering and client capability.  While the Group continues to 
operate against a backdrop of global geopolitical uncertainty and heightened market volatility, the 
continued progress within the core of the business since the merger of SHUAA Capital and Abu Dhabi 
Financial Group in 2019 allows management to remain confident about the Group’s ability to build 
on its market-leading position and deliver significant value creation for its investors and its 
shareholders. 
 
The Board would like to thank and extend our gratitude to all our existing and future shareholders, 
investors and stakeholders for their continued support and confidence in the Company. 
 
Directors 
 
Fadhel Al Ali 
 (Chairman) 
Ahmed Bin Braik 
 (Vice Chairman) 
Murshed Alredaini 
 (Director) 
Christopher Ward 
 (Director) 
Badr Al-Olama (elected 22.04.2021) 
 (Director) 
Lamis Al Hashimy (elected 22.04.2021) 
 (Director) 
Maha AlQattan (elected 22.04.2021) 
 (Director) 
 
H.E. Abubaker Al Khoori (resigned 02.02.2021) 
 (Director) 
H.E. Hafsa Abdullah Mohamed Sharif Al Ulama (resigned 06.03.2021) 
 (Director) 
Masood Mahmood (resigned 06.03.2021) 
 (Director) 
 
Auditors 
 
PricewaterhouseCoopers were appointed as external auditors and conducted an audit of the 
annual financial statements for the year ended 31 December 2021. The Board of Directors has 
recommended PricewaterhouseCoopers as the auditors for 2022 for approval by the shareholders 
at the forthcoming annual general meeting. 
 
On behalf of the Board 
 
 
 
 
 
Fadhel Alali 
Chairman 
28 March 2022 
 
 
76     SHUAA Annual Report 2021

PricewaterhouseCoopers (Dubai Branch), License no. 102451 
Emaar Square, Building 5, P O Box 11987, Dubai - United Arab Emirates 
T: +971 (0)4 304 3100, F: +971 (0)4 346 9150, www.pwc.com/me 
 
Jacques Fakhoury, Douglas O’Mahony, Murad Alnsour and Rami Sarhan are registered as practising auditors with the UAE 
Ministry of Economy 
 
 
 
 
 
 
 
 
 
Independent auditor’s report to the shareholders of SHUAA 
Capital PSC 
 
Report on the audit of the consolidated financial statements 
Our opinion  
 
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated 
financial position of SHUAA Capital PSC (the “Company”) and its subsidiaries (together the “Group”) as at 
31 December 2021, and its consolidated financial performance and its consolidated cash flows for the year 
then ended in accordance with International Financial Reporting Standards. 
 
What we have audited 
 
The Group’s consolidated financial statements comprise: 
● 
the consolidated statement of financial position as at 31 December 2021; 
● 
the consolidated statement of profit or loss for the year then ended; 
● 
the consolidated statement of comprehensive income for the year then ended; 
● 
the consolidated statement of changes in equity for the year then ended; 
● 
the consolidated statement of cash flows for the year then ended; and 
● 
the notes to the consolidated financial statements, which include significant accounting policies and 
other explanatory information.  
 
Basis for opinion  
 
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities 
under those standards are further described in the Auditor’s Responsibilities for the Audit of the 
Consolidated Financial Statements section of our report.  
 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our opinion.  
 
Independence 
 
We are independent of the Group in accordance with the International Code of Ethics for Professional 
Accountants (including International Independence Standards) issued by the International Ethics 
Standards Board for Accountants (IESBA Code) and the ethical requirements that are relevant to our audit 
of the consolidated financial statements in the United Arab Emirates. We have fulfilled our other ethical 
responsibilities in accordance with these requirements and the IESBA Code. 
 
77     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Our audit approach 
 
Overview 
 
Key Audit Matters 
• 
Impairment of goodwill and indefinite-life intangible assets 
• 
Measurement of Expected Credit Losses (“ECL”) 
• 
Valuation of financial instruments (Level 3) 
• 
Impairment of investments in associates 
• 
Consolidation – control assessment 
 
As part of designing our audit, we determined materiality and assessed the risks of material misstatement 
in the consolidated financial statements. In particular, we considered where management made subjective 
judgements; for example, in respect of significant accounting estimates that involved making assumptions 
and considering future events that are inherently uncertain. As in all of our audits, we also addressed the 
risk of management override of internal controls, including among other matters consideration of whether 
there was evidence of bias that represented a risk of material misstatement due to fraud. 
 
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion 
on the consolidated financial statements as a whole, taking into account the structure of the Group, the 
accounting processes and controls, and the industry in which the Group operates. 
 
Key audit matters  
 
Key audit matters are those matters that, in our professional judgement, were of most significance in our 
audit of the consolidated financial statements of the current period. These matters were addressed in the 
context of our audit of the consolidated financial statements as a whole, and in forming our opinion 
thereon, and we do not provide a separate opinion on these matters. 
 
Key audit matter 
How our audit addressed the key audit matter 
 
Impairment of goodwill and indefinite-life 
intangible assets 
 
As part of the purchase price allocation 
performed in 2019 upon the merger of SHUAA 
and Abu Dhabi Financial Group (“ADFG”), 
significant goodwill and indefinite-life intangible 
assets have been identified and recorded in 
the Group’s consolidated statement of financial 
position as at 31 December 2021.  
 
As per IAS 36, management is required at 
least on an annual basis to assess whether 
there is any indication that an asset may be 
impaired and if so, perform an assessment to 
determine any impairment using the higher of 
fair value less costs to sell and value in use. 
 
 
 
 
 
Our approach to addressing this key audit matter 
included the following procedures: 
 
● 
Comparing the budgeted cash flows for the 
year 2021 to the actual performance. 
 
● 
Reviewing the methodology and significant 
cash flow discount and growth rate inputs 
used by management in the value in use 
(“ViU”) calculation and performing the 
following procedures to obtain an 
understanding of the cash flows projections 
related to each cash generating unit (“CGU”): 
o 
Inquiry with management on 
business plans; 
o 
Review of supporting business 
plans, management budgets and 
forecasts; and 
o 
Reviewing minutes of meetings in 
relation to future plans. 
 
 
 
 
78     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Key audit matters (continued) 
 
Key audit matter 
How our audit addressed the key audit matter 
 
Impairment of goodwill and indefinite-life 
intangible assets (continued) 
 
During 2021, an improvement in the economy 
of the region was observed as countries 
vaccinated a significant percentage of their 
population, however, unpredictability and 
business disruption caused by COVID-19 and 
rising inflation worldwide were considered 
impairment indicators. 
 
We determined that the impairment of goodwill 
and indefinite life intangible assets is significant 
to the audit of the current year’s consolidated 
financial statements due to materiality of the 
amounts involved and significant judgement 
exercised by management in: 
 
● 
the determination of the expected cash 
flows related to each CGU; 
● 
the determination of the discount rates 
used by management in the value in 
use calculations; and 
● 
the determination of the growth rates 
used by management in the expected 
cash flows in Note 16. 
 
 
 
● 
Reviewing and comparing the 
appropriateness of discount rates used by 
management in the value in use calculations 
to industry benchmarks and economic 
forecasts; 
 
● 
Reviewing management’s assumptions for 
expected cash flows in accordance with the 
requirements of IAS 36, impairment of 
Assets. 
 
• 
Assessing the appropriateness of 
disclosures made in the consolidated 
financial statements in relation to goodwill 
and indefinite-life intangible assets presented 
in Note 16 and note 31. 
 
Measurement of ECL 
 
The Group applies ECL on all its financial 
assets measured at amortised cost and 
financial guarantee contracts including 
financing commitments. 
 
The Group exercises significant judgement and 
makes a number of assumptions in developing 
its ECL models, which include probability of 
default, determining loss given default and 
exposure at default for both funded and 
unfunded exposures, forward looking 
adjustments and staging criteria. For defaulted 
exposures, the Group exercises judgements to 
estimate the expected future cash flows related 
to individual exposures, including the value of 
collateral. 
 
The Group’s impairment policy under IFRS 9 is 
presented in Note 3.12 to the consolidated 
financial statements.  
 
 
 
 
 
Our approach to addressing this key audit matter 
included the following procedures: 
 
● 
Understanding key controls including the 
overall governance and reporting structure 
over the ECL model and key assumptions 
used; 
 
● 
Testing the completeness and accuracy of 
the data used in the calculation of ECL; 
 
● 
Verifying the appropriateness of the Group’s 
application of the staging criteria for a 
sample of exposures;  
 
● 
For a sample of exposures, we assessed the 
appropriateness of determining Exposure at 
Default (EAD), including the consideration of 
repayments and collateral; 
 
● 
Assessing the conceptual framework used 
for developing the Group’s impairment policy 
in the context of its compliance with the 
requirements of IFRS 9; 
  
 
 
79     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Key audit matters (continued) 
 
Key audit matter 
How our audit addressed the key audit matter 
 
Measurement of ECL (continued) 
 
We determined that the estimation of ECL is 
significant to the audit of the current year’s 
consolidated financial statements due to: 
 
- 
Significant judgement required by 
management in the staging criteria 
applied to the financial assets as well as 
in developing ECL models for calculating 
its impairment provisions; and 
 
- 
Effort necessary to evaluate audit 
evidence as the measurement of 
expected credit losses is a complex 
calculation that involves a large volume of 
data, interrelated inputs and assumptions.  
 
Further details on credit risk management are 
disclosed in Note 25. 
 
• 
Assessing the reasonableness of Loss Given 
Default (“LGD”) and exposure at default 
(“EAD”) for the Group’s classes of financial 
assets. 
 
• 
Involvement of auditor's experts to assess 
the following areas: 
 
○ 
ECL modelling methodology and 
calculations used to compute the 
Probability of default (“PD”). The 
appropriateness of methodology was 
assessed giving specific consideration to 
management overlays. 
○ 
Reasonableness of the assumptions 
made in developing the modelling 
framework including assumptions used 
for estimating forward looking scenarios 
and significant increase in credit risk. 
○ 
The appropriateness of the ECL 
calculation and its interrelated inputs, 
methodology and assumptions.  
 
• 
For the Stage 3 exposures, the 
appropriateness of provisioning assumptions 
were independently assessed for a sample of 
exposures selected on the basis of risk and 
the significance of individual exposures. An 
independent view was formed on the levels 
of provisions recognised, based on the 
individual exposures and counterparty 
information available; and 
 
• 
Assessing the disclosures made in the 
consolidated financial statements to ensure 
compliance with IFRS 7 and IFRS 9. 
 
 
Valuation of financial instruments (Level 3) 
 
The Group’s investment securities portfolio 
includes certain level 3 securities for which 
the Group determines the fair value using 
discounted cash flow models, residual value 
and third-party net asset valuations (NAVs) 
that use significant unobservable inputs.  
- 
Unobservable inputs require the use of 
significant judgement. The key 
unobservable inputs used in the 
models of such unquoted securities 
includes discount rates, growth rates, 
future cashflows and adjusted book 
values. 
 
Our approach to addressing this key audit matter 
included the following procedures: 
 
• 
Evaluation by our experts of the 
methodologies and significant inputs used by 
the Group in the valuation models; and 
80     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Key audit matters (continued) 
 
Key audit matter 
How our audit addressed the key audit matter 
Valuation of financial instruments (Level 3) 
(continued) 
 
We determined that the fair value of unquoted 
securities is significant to the audit of the current 
year’s consolidated financial statements due to the 
high degree of measurement uncertainty in the 
unobservability of the inputs used in the valuation 
models.  
 
Further details of financial instruments are 
disclosed in Note 24. 
 
 
● 
Testing, with involvement of our experts, the 
fair values of a sample of unquoted 
securities. Depending on the nature of the 
security, key unobservable inputs including 
future cash flows were compared to relevant 
information or independent estimates of fair 
value were developed and compared to the 
fair values determined by the Group. 
 
● 
Assessing the disclosures made in the 
consolidated financial statements to ensure 
compliance with IFRS 7, IFRS 9 and IFRS 
13. 
 
 
Impairment of investments in associates 
 
As per IAS 10 - Events after the reporting period, 
the transaction between Qannas Investments 
Limited (“QIL”), an associate of the Group, and a 
third party on 17 January 2022 resulting in a net 
loss is considered an indicator of impairment of 
the Group’s investment in QIL. 
 
We determined that the impairment of the 
investment in QIL is significant to the audit of the 
current year’s consolidated financial statements 
due to materiality of the amounts involved and 
significant judgement exercised by management 
in: 
 
● 
the determination of the fair value of the 
Group’s investment in the associate 
subsequent to the transaction; 
● 
the determination of the discount rates 
used by management in determining  the 
fair value of consideration received; and 
● 
the classification and valuation of the 
assets received IFRS 9 - Financial 
Instruments. 
 
Further details of impairment in investment in 
associate are disclosed in Note 14 and 31. 
 
 
Our approach to addressing this key audit matter 
included the following procedures: 
 
● 
Obtaining an understanding of the 
transaction entered into by the associate by: 
o 
Reviewing the QIL board materials 
and resolutions for the transaction 
approvals; 
o 
Reviewing the transaction 
agreements, conditions and 
contingencies. 
 
● 
Testing the completeness and accuracy of 
the assets and liabilities included in the 
transaction by reviewing asset swap 
agreements and title transfer documents. 
 
● 
Testing, with involvement of our experts,  
the appropriateness of the Group’s 
assessment and application of the IAS 10, 
IAS 36 and IFRS 13 standards in the 
recognition of impairment of the investment 
in associate. 
  
● 
Reviewing and comparing the 
appropriateness of classification under IFRS 
9 and discount rates used by management 
in the fair value calculations of consideration 
received to industry benchmarks; and  
 
• 
Assessing the appropriateness of 
disclosures made in relation to the 
subsequent event and the impairment in the 
investment in associate in Note 31. 
 
 
 
81     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Key audit matters (continued) 
 
Key audit matter 
How our audit addressed the key audit matter 
 
Consolidation – control assessment 
 
A key criteria for consolidation under IFRS 10 
requires control through ownership of a majority of 
the voting power of an investee and exposure or 
rights to variable returns. Control assessments 
can be judgemental and involve complex analysis 
which need to be carefully reviewed. 
 
Considering the Group’s nature of business, 
determining whether the Group has control over 
an investee is judgmental and involves a critical 
assessment of the purpose and design of an 
investee, nature of rights – substantive or 
protective in nature, assessment of existing and 
potential voting rights, whether an investor is a 
principal or agent when exercising its controlling 
power, relationships between investors and how 
they affect control and the existence of power 
over specified assets.  
 
We considered control assessment to be a key 
audit matter in view of the judgement involved and 
its potentially significant impact on the 
consolidated financial statements. 
 
Further details are disclosed in Note 1 and 4. 
 
 
Our approach to addressing this key audit matter 
included the following procedures: 
 
● 
Assessing the potential voting power 
through inspection of ownership and related 
documents.  
 
● 
Assessing the Group’s exposure or rights to 
variable returns from the investee by 
inspecting underlying agreements. 
 
● 
Assessing the ability of the Group to use its 
power over the investee to affect the 
amount of returns which the Group is 
entitled to earn from the investee. 
 
• 
Assessing the appropriateness of 
disclosures made in the consolidated 
financial statements in accordance with 
IFRS 10. 
 
Other information  
 
Management is responsible for the other information. The other information comprises the Annual report 
(but does not include the consolidated financial statements and our auditor’s report thereon). We 
obtained the Board of Directors' Report prior to the date of this auditor’s report and the remaining 
information of the annual report is expected to be made available to us after that date. 
 
Our opinion on the consolidated financial statements does not cover the other information and we do not 
and will not express any form of assurance conclusion thereon. 
 
In connection with our audit of the consolidated financial statements, our responsibility is to read the 
other information identified above and, in doing so, consider whether the other information is materially 
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or 
otherwise appears to be materially misstated. 
 
If, based on the work we have performed, on the other information that we obtained prior to the date of 
this auditor’s report, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard.  
 
When we read the remaining information of the annual report of the Group, if we conclude that there is a 
material misstatement therein, we are required to communicate the matter to those charged with 
governance. 
 
82     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Responsibilities of management and those charged with governance for the 
consolidated financial statements 
 
Management is responsible for the preparation and fair presentation of the consolidated financial 
statements in accordance with International Financial Reporting Standards and their preparation in 
compliance with the applicable provisions of the UAE Federal Law No. (2) of 2015 as amended, and for 
such internal control as management determines is necessary to enable the preparation of consolidated 
financial statements that are free from material misstatement, whether due to fraud or error.  
 
In preparing the consolidated financial statements, management is responsible for assessing the Group’s 
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and 
using the going concern basis of accounting unless management either intends to liquidate the Group or 
to cease operations, or has no realistic alternative but to do so.  
 
Those charged with governance are responsible for overseeing the Group’s financial reporting process. 
 
Auditor’s responsibilities for the audit of the consolidated financial statements 
 
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements 
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a 
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement 
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or 
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken 
on the basis of these consolidated financial statements.  
 
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain 
professional scepticism throughout the audit. We also: 
 
● 
Identify and assess the risks of material misstatement of the consolidated financial statements, 
whether due to fraud or error, design and perform audit procedures responsive to those risks, and 
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of 
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, 
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of 
internal control. 
 
● 
Obtain an understanding of internal control relevant to the audit in order to design audit procedures 
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 
effectiveness of the Group’s internal control.  
 
● 
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 
estimates and related disclosures made by management.  
 
● 
Conclude on the appropriateness of management’s use of the going concern basis of accounting 
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or 
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we 
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to 
the related disclosures in the consolidated financial statements or, if such disclosures are 
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to 
the date of our auditor’s report. However, future events or conditions may cause the Group to cease 
to continue as a going concern.  
 
 
83     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Auditor’s responsibilities for the audit of the consolidated financial statements 
(continued) 
 
● 
Evaluate the overall presentation, structure and content of the consolidated financial statements, 
including the disclosures, and whether the consolidated financial statements represent the underlying 
transactions and events in a manner that achieves fair presentation. 
 
● 
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or 
business activities within the Group to express an opinion on the consolidated financial statements. 
We are responsible for the direction, supervision and performance of the Group audit. We remain 
solely responsible for our audit opinion. 
 
We communicate with those charged with governance regarding, among other matters, the planned 
scope and timing of the audit and significant audit findings, including any significant deficiencies in 
internal control that we identify during our audit.  
 
We also provide those charged with governance with a statement that we have complied with relevant 
ethical requirements regarding independence, and to communicate with them all relationships and other 
matters that may reasonably be thought to bear on our independence, and where applicable, related 
safeguards.   
 
From the matters communicated with those charged with governance, we determine those matters that 
were of most significance in the audit of the consolidated financial statements of the current period and 
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or 
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we 
determine that a matter should not be communicated in our report because the adverse consequences of 
doing so would reasonably be expected to outweigh the public interest benefits of such communication.  
 
Report on other legal and regulatory requirements 
 
Further, as required by the UAE Federal Law No. (2) of 2015 as amended, we report that for the year 
ended 31 December 2021: 
 
i) 
we have obtained all the information we considered necessary for the purposes of our audit; 
 
ii) 
the consolidated financial statements have been prepared and comply, in all material respects, with 
the applicable provisions of the UAE Federal Law No. (2) of 2015 as amended;   
 
iii) 
the Group has maintained proper books of account; 
 
iv) 
the financial information included in the Board of Directors’ Report is consistent with the books of 
account of the Group;  
 
v) 
as disclosed in note 24.1 to the consolidated financial statements the Group has purchased or 
invested in shares during the year ended 31 December 2021; 
 
vi)    note 23 to the consolidated financial statements discloses material related party transactions and 
the terms under which they were conducted;  
 
 
 
84     SHUAA Annual Report 2021

Independent auditor’s report to the shareholders of SHUAA 
Capital PSC (continued) 
 
Report on other legal and regulatory requirements (continued) 
 
 
vii) based on the information that has been made available to us, nothing has come to our attention 
which causes us to believe that the Group has contravened during the year ended 31 December 
2021 any of the applicable provisions of the UAE Federal Law No. (2) of 2015 as amended or in 
respect of the Group, its Articles of Association which would materially affect its activities or its 
financial position as at 31 December 2021; and 
 
viii) note 7 to the consolidated financial statements discloses the social contributions made during the 
year ended 31 December 2021.  
 
Further, as required by Article (114) of the Decretal Federal Law No. (14) of 2018, we report that we have 
obtained all the information and explanations we considered necessary for the purpose of our audit.  
 
 
PricewaterhouseCoopers  
28 March 2022 
 
 
 
 
Rami Sarhan  
Registered Auditor Number: 1152 
Place: Dubai, United Arab Emirates 
 
 
 
 
 
85     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of profit or loss  
for the year ended 31 December 2021 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 The accompanying notes form an integral part of these consolidated financial statements. 
 
 
 
 
 
31 December 
31 December 
 
 
2021 
2020 
 
Notes 
Audited 
Audited 
 
 
 
 
 
 
 
 
Operating income 
 
Interest income 
Interest expense 
6 
387,284 
 
13,134 
(5,936) 
523,637 
 
18,646 
(3,766) 
 
Net operating revenue 
 
——— 
394,482 
——— 
538,517 
 
 
 
 
Staff costs 
 
(165,985) 
 (140,825) 
General and administrative expenses 
7 
(75,946) 
 (72,367) 
Depreciation and amortisation 
 15,16 
(46,014) 
(52,140) 
Provision for impairment losses on financial instruments 
8 
(17,780) 
 (4,825) 
Other operating expenses 
9 
(9,620) 
 (26,772) 
 
 
——— 
——— 
Total operating expenses 
 
(315,345) 
(296,929)  
 
 
——— 
——— 
 
 
 
 
Net operating income 
 
79,137 
 241,588 
 
 
 
 
Change in fair value gains/(losses) from financial assets at 
fair value through profit or loss (FVTPL) 
24.1 
 
654,922 
 
 (255,198) 
Gain/(loss) on derivative financial liability 
 
2,590 
(3,505) 
Share of net (loss)/profit of investments in associates 
accounted for using the equity method  
 
14 
 
  (157,062) 
 
80,182 
Finance cost 
19.3 
(147,362) 
(172,082) 
Finance credit relating to unit holders 
 
(407,274) 
114,124 
Other income 
10 
37,733 
 152,969 
 
 
——— 
——— 
Profit from continuing operations 
 
62,684 
 158,078 
 
 
 
 
Profit/(loss) from discontinued operations 
29 
8,250 
(2,728) 
 
 
——— 
——— 
 
 
 
 
Profit for the year 
 
70,934 
 155,350 
 
 
——— 
——— 
Attributable to: 
 
 
 
Owners of the Parent  
 
24,238 
125,263 
Non-controlling interests 
 
46,696 
30,087 
 
 
———— 
———— 
 
 
70,934 
 155,350 
 
 
══════ 
 ══════ 
Earnings per share attributable to Owners from continuing 
operations (in AED) 
 
22 
 
0.01 
 
0.05 
 
 
══════ 
══════ 
 
 
 
 
Earnings per share attributable to Owners (in AED) 
22 
0.01 
0.05 
 
 
══════ 
══════ 
86     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of comprehensive income 
for the year ended 31 December 2021 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 The accompanying notes form an integral part of these consolidated financial statements. 
 
 
 
31 December 
2021 
31 December 
 2020 
 
 
Audited 
Audited 
 
Notes 
 
 
Profit for the year 
 
70,934 
155,350 
 
 
 
 
Other comprehensive income 
 
 
 
 
 
 
 
Items that may be reclassified to profit or loss 
 
 
 
Exchange differences on translation of foreign operations 
21 
(15,612) 
18,724 
Net loss on cash flow hedges 
 
 
 
- Share of other comprehensive income/(loss) from 
investment in associates (classified as held for sale) 
  
53,368 
(47,569) 
- Others 
 
(21) 
3,467 
 
 
 
 
Items that will not be reclassified to profit or loss 
 
 
 
Changes in the fair value of equity investments at fair value 
through other comprehensive loss (FVOCI) 
 
(35,134) 
(16,963) 
 
 
——— 
——— 
Other comprehensive income/(loss) for the year 
 
2,601 
(42,341) 
 
 
——— 
——— 
Total comprehensive income for the year 
 
73,535 
113,009 
 
 
——— 
——— 
Attributable to: 
 
 
 
Owners of the Parent 
 
38,932 
73,486 
Non-controlling interests 
 
34,603 
39,523 
 
 
——— 
——— 
 
 
73,535 
113,009 
 
 
═════ 
═════ 
 
 
 
 
87     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of financial position 
as at 31 December 2021 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
 
 
31 December 
31 December 
 
 
2021 
2020 
 
 
Audited 
Audited 
 
Notes 
 
 
Assets 
 
 
 
 
 
  
 
Cash and deposits with banks 
11 
460,648 
 416,975 
Receivables and other debit balances 
12 
351,040 
 214,292 
Loans, advances and finance leases 
13 
236,266 
 346,232 
Financial assets at fair value 
24.3 
3,113,590 
 2,428,999 
Investments in associates 
14 
354,036 
434,312 
Property and equipment 
15 
34,362 
 42,762 
Goodwill and other intangible assets 
16 
1,212,014 
1,241,797 
 
 
 
 
Assets held for sale  
29 
5,930 
 922,943 
 
 
———— 
———— 
Total assets 
 
5,767,886 
 6,048,312 
 
 
═══════ 
══════ 
 
 
 
 
Liabilities 
 
 
 
 
 
 
 
Payables and other credit balances 
17 
802,092 
511,160 
Other financial liabilities 
18 
148,267 
149,983 
Borrowings 
19 
1,985,419 
2,395,701 
Payables to unit holders 
 
986,046 
578,757 
 
 
 
 
Liabilities of disposal groups classified as held for sale 
29 
- 
386,534 
 
 
———— 
———— 
Total liabilities 
 
3,921,824 
4,022,135 
 
 
———— 
———— 
Equity 
 
 
 
 
 
 
 
Share capital 
20 
2,535,720 
2,535,720 
Share premium 
 
52,579 
52,579 
Statutory reserve 
 
49,631 
 47,207 
Other reserves 
21 
(1,424,452) 
(1,439,146) 
Retained earnings 
 
240,479 
 293,727 
 
 
———— 
———— 
Equity attributable to Owners 
 
1,453,957 
1,490,087 
Non-controlling interests (NCI) 
28 
392,105 
536,090 
 
 
———— 
———— 
Net equity 
 
1,846,062 
2,026,177 
 
 
———— 
———— 
Total equity and liabilities 
 
5,767,886 
6,048,312 
 
 
═══════ 
══════ 
 
 
 
 
The consolidated financial statements were approved by the Board of Directors and authorized 
for issue on 28 March 2022. 
 
 
 
_________________________                                              ______________________________ 
Fadhel Alali 
Chairman 
Jassim Alseddiqi 
Group Chief Executive Officer 
 
 The accompanying notes form an integral part of these consolidated financial statements. 
88     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of changes in equity 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
The accompanying notes form an integral part of these consolidated financial statements. 
 
Share 
capital 
 
Share 
premium 
 
Statutory 
reserve (*) 
 
Other 
reserves 
 
Retained 
earnings 
 
Equity 
attributable 
to owners of 
the Parent 
 
Non - 
controlling 
interests 
 
Total 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2020 
2,535,720 
 
52,579 
 
34,681 
 
(1,387,369) 
 
229,471 
 
1,465,082 
 
404,262 
 
1,869,344 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit for the year 
- 
 
- 
 
- 
 
- 
 
125,263 
 
125,263 
 
30,087 
 
155,350 
Other comprehensive(loss)/ income for the year 
- 
 
- 
 
- 
 
(51,777) 
 
- 
 
(51,777) 
 
9,436 
 
(42,341) 
Total comprehensive(loss)/ income for the year 
- 
 
- 
 
- 
 
(51,777) 
 
 125,263 
 
73,486 
 
39,523 
 
 113,009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transactions with the owners in their capacity as owners 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment of dividend 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
(21,363) 
 
(21,363) 
Transactions with unit holders 
- 
 
- 
 
- 
 
- 
 
(254) 
 
(254) 
 
- 
 
(254) 
Transactions with owners (Notes 1,29) 
- 
 
- 
 
- 
 
- 
 
(48,227) 
 
(48,227) 
 
 130,870 
 
82,643 
NCI on exit of a subsidiary 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
(17,202) 
 
(17,202) 
Transfer to statutory reserve 
- 
 
- 
 
12,526 
 
- 
 
(12,526) 
 
- 
 
- 
 
- 
Balance at 31 December 2020 (Audited) 
2,535,720 
 
52,579 
 
47,207 
 
(1,439,146) 
 
293,727 
 
1,490,087 
 
536,090 
 
2,026,177 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit for the year 
- 
 
- 
 
- 
 
- 
 
24,238 
 
24,238 
 
46,696 
 
70,934 
Other comprehensive income/(loss) for the year 
- 
 
- 
 
- 
 
14,694 
 
- 
 
14,694 
 
(12,093) 
 
2,601 
Total comprehensive income for the year 
- 
 
- 
 
- 
 
14,694 
 
24,238 
 
38,392 
 
34,603 
 
73,535 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transactions with the owners in their capacity as 
owners  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment of dividend 
- 
 
- 
 
- 
 
- 
 
(76,071) 
 
(76,071) 
 
(65,851) 
 
(141,922) 
Transactions with owners 
- 
 
- 
 
- 
 
- 
 
(18,626) 
 
(18,626) 
 
76,871 
 
58,245 
Disposal of Treasury shares 
- 
 
- 
 
- 
 
- 
 
19,635 
 
19,635 
 
- 
 
19,635 
NCI on exit of a subsidiary 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
(189,608) 
 
(189,608) 
Transfer to statutory reserve 
- 
 
- 
 
2,424 
 
- 
 
(2,424) 
 
- 
 
- 
 
- 
 Balance at 31 December 2021 
2,535,720 
 
52,579 
 
49,631 
 
(1,424,452) 
 
240,479 
 
1,453,957 
 
392,105 
 
1,846,062 
 
(*) In accordance with the UAE Federal Law No. (2) of 2015 as amended concerning Commercial Companies and SHUAA Capital PSC’s (SHUAA’s) Articles of Association, 10% of the profit for the year is to be transferred to a 
statutory reserve. SHUAA may resolve to discontinue such annual transfer when the reserve equals 50% of the capital. The reserve is not available for distribution except in cases stipulated by law and SHUAA’s Articles of 
Association. 
 
89     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of cash flows 
for the year ended 31 December 2021 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
The accompanying notes form an integral part of these consolidated financial statements. 
 
 
31 December 
2021 
31 December 
2020 
 
 
Audited 
Audited 
Cash flows from operating activities 
Notes 
 
 
 
 
 
 
Profit for the year 
 
70,934 
155,350 
Adjustments for (non-cash items): 
 
 
 
Finance credit relating to unit holders 
 
407,274 
(114,124) 
Bargain purchase gain 
6.1 
- 
(182,653) 
Foreign exchange loss 
9 
(5,900) 
6,270 
Carried interest recognised – net 
 
10,426 
- 
Finance cost 
 
147,362 
172,082 
Net interest income 
 
(7,198) 
(14,880) 
One-time transaction claw back 
10 
- 
(112,882) 
Borrowing deferment income 
10 
- 
(4,401) 
Finance lease modification charge 
10 
4,320 
15,328 
Non-cash distributions from associates 
14 
26,741 
61,152 
Fair value (gain)/ loss on financial assets at FVTPL 
 
(654,922) 
255,198 
Share of profit from investments in associates 
14 
157,062 
(80,182) 
Dividend income 
 
(96,044) 
(68,286) 
(Gain)/loss on revaluation of derivative financial liabilities 
 
(2,590) 
3,505 
Employees’ end of service benefit charge 
 
5,621 
 5,988 
Provisions and allowances for impairment - net 
8 
17,780 
4,825 
Goodwill and intangible impairment 
16 
- 
9,533 
Depreciation and amortization 
15,16 
46,014 
52,140 
 
 
———— 
———— 
Operating cash flows before movements in working capital 
 
126,880 
163,963 
Decrease in inventories 
 
- 
23,786 
Increase in receivables and other debit balances 
 
(147,982) 
(65,985) 
Decrease in loans and advances 
 
98,910 
12,960 
Increase/(decrease) in payables and other credit balances 
 
158,931 
(167,993) 
Decrease in other financial liabilities 
 
(1,716) 
(2,172) 
 
 
 
 
Cash flows from operating activities of discontinued operations 
 
(8,016) 
8,243 
 
 
———— 
———— 
Net cash generated from / (used in) operations 
 
227.007 
(27,198) 
Employees’ end of service benefit paid 
 
(6,276) 
 (3,836) 
Dividend income 
 
96,044 
———— 
68,286 
———— 
Net cash generated from operating activities 
 
316,775 
37,252 
 
 
———— 
———— 
Cash flows from investing activities * 
 
 
 
Payments for the purchase of investments 
 
(476,050) 
 (155,822) 
Proceeds from disposal of investments 
 
565,302 
188,898 
Dividends from associates 
14 
1,818 
55,800 
Net acquisition of property and equipment 
 
(22,055) 
 (406) 
Net interest received 
 
7,198 
14,880 
Cash flow from investing activities of discontinued operations 
 
309,138 
 (224) 
 
 
———— 
———— 
Net cash generated from investing activities 
 
385,351 
103,126 
 
 
———— 
———— 
 
 
 
 
 
 
 
 
 
 
 
 
. 
 
90     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Consolidated statement of cash flows 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 The accompanying notes form an integral part of these consolidated financial statements. 
 
 
 
31 December  
2021 
31 December  
2020 
 
 
 Audited 
Audited 
Cash flows from financing activities 
Notes 
 
 
Proceeds from borrowings 
19.3 
195,590 
 418,642 
Repayment of borrowings 
19.3 
(590,843) 
 (278,169) 
Lease rentals paid 
 
(6,848) 
(4,930) 
Redemption to unit holders 
 
- 
(18,651) 
Issue to unit holders 
 
- 
17,886 
Dividends paid 
 
(141,920) 
(22,057) 
Proceeds from sale of treasury shares 
 
19,635 
- 
Cash outflow on disposal of a subsidiary 
 
- 
(16,508) 
Finance cost paid 
 
(162,391) 
(163,720) 
Cash flow from financing activities of discontinued operations 
 
- 
 (7,710) 
 
 
———— 
———— 
Net cash used in financing activities 
 
(686,777) 
 (75,217) 
 
 
———— 
———— 
Net increase in cash and cash equivalents 
 
15,349 
65,161 
 
 
 
 
Cash and cash equivalents at beginning of the year 
11 
377,266 
360,193 
Foreign currency translation 
 
- 
(329) 
Cash and cash equivalent from discontinued operations 
 
28,324 
(28,324) 
Cash and cash equivalents acquired in business combination 
 
- 
20,274 
Restricted cash 
11 
32,581 
(39,709) 
 
 
———— 
———— 
Cash and cash equivalents at end of the year 
11 
453,520 
377,266 
 
 
═════ 
═════ 
 
 
 
 
 
 
*  Cash flows from investing activities exclude AED 20,927 non-cash items 
 
 
 
 
 
 
 
 
 
91     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
1. 
LEGAL STATUS AND ACTIVITIES 
 
SHUAA Capital P.S.C. (the “Company” or “SHUAA”) is a public shareholding company established in Dubai, United 
Arab Emirates, pursuant to Emiri Decree No. 6 of 25 April 1979 and in accordance with the UAE Federal Law No. 
8 of 1984 concerning Commercial Companies and its amendments (“Companies Law”). The registered address 
of the Company is P.O. Box 31045, Dubai, United Arab Emirates. The Company’s shares are traded on the Dubai 
Financial Market in the United Arab Emirates.  
 
The Company is licensed by the Securities and Commodities Authority to conduct Investment Management, 
Financial Consulting and Financial Analysis, Promotion, Introduction and Issuance Management activities. The 
Company and its subsidiaries conduct a diversified range of investment and financial services activities with 
special emphasis on the Arab region in general, the U.A.E. and the G.C.C. markets in particular, and are actively 
involved in public and private capital markets in the region. 
 
Business combination in 2020 
 
In 2020, SHUAA acquired the business of Stanford Marine Group (“SMG”) through Thalassa Investments LP, 
effective 31 December 2020. In accordance with IFRS 3 “Business Combinations'', the Group accounted for the 
acquisition based on fair values of the identifiable assets acquired and liabilities assumed. 
 
For the purchase consideration paid, SHUAA acquired tangible assets with attributable fair values of 699,479 
(comprising of  deposits with bank, receivables, inventories and property, plant and equipment), and liabilities 
with attributable fair value of  315,375 (comprising of borrowings and payables), resulting in bargain purchase 
gain (Note 6.1). The asset acquired and liabilities assumed are based on provisional valuations.  
 
Given that the business combination was effective on 31 December 2020, there is no contribution of revenue and 
profit for the year ended 31 December 2020. 
 
As at the year end, the Group sold 33.8% stake in Thalassa Investments LP which resulted in the Group losing 
control in SMG. Consequently, the Group deconsolidated the assets and liabilities of SMG as at year end and 
recognized the remaining stake as an associate. The loss on disposal and other financial information is 
presented in note 30. 
 
No contingent liabilities were recognized based on the provisional purchase price allocation exercise. 
92     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
1. 
LEGAL STATUS AND ACTIVITIES (continued) 
 
Group structure 
 
The principal activities of Abu Dhabi Financial Group (“ADFG”) and its subsidiaries (together referred as the 
“Group”) are to carry out commercial and real estate investment activities, establishment and management of 
enterprises, consultancy services, investment banking and trading in securities. The extent of the Group’s 
ownership in the material subsidiaries and associates with their principal activities have been listed below: 
 
Name of the entity 
Place of 
incorporation 
Principal  
activity 
Effective 
ownership 
interest % 
Effective 
ownership 
interest % 
 
 
 
31 
December 
 31 
December 
 
 
 
2021 
2020 
Material subsidiaries 
 
 
 
 
AD CapManage Ltd. (BVI) 
 
B.V.I. 
Commercial enterprise 
investment, institution & 
management 
100.0% 
100.0% 
ADCM Ltd 
Cayman 
Islands 
Investment 
management 
100.0% 
100.0% 
ADCM Altus Investment 
Management Ltd  
UAE 
Investment 
management 
100.0% 
100.0% 
ADCM Resources Ltd 
Cayman 
Islands 
Investment advisory 
100.0% 
100.0% 
ADCM Emp Carry Ltd 
B.V.I. 
Special Purpose Vehicle 
100.0% 
100.0% 
AD Power Limited 
Cayman 
Islands 
Investment holding 
100.0% 
100.0% 
BBD Partners GP (i) 
Cayman 
Islands 
Investment 
management 
100.0% 
100.0% 
Horizon Investments- Sole Prop 
LLC 
UAE 
Investment holding 
100.0% 
100.0% 
Integrated EE Holdings  
Montenegro 
Project management 
100.0% 
100.0% 
Integrated Alternative Finance 
Limited * 
UAE 
Arranging credit, 
custody and advising on 
financial products 
100.0% 
100.0% 
Gulf Finance Corporation CJSC 
Saudi Arabia 
Financing 
100.0% 
100.0% 
Gulf Finance Corporation PJSC 
UAE 
Financing 
100.0% 
100.0% 
SHUAA Capital PSC 
UAE 
Financial services and 
investments holding 
100.0% 
100.0% 
SHUAA Capital International 
Limited** 
UAE 
Market Making / 
Liquidity Provider 
- 
100.0% 
SHUAA Capital Saudi Arabia CJSC 
Saudi Arabia 
Financial services 
100.0% 
100.0% 
SHUAA Securities Egypt SAE*** 
Egypt  
Brokerage 
- 
100.0% 
Integrated Capital PJSC  
UAE  
Financial services 
96.0% 
96.0% 
Asia for Economic Consultancy 
LLC  
Jordan 
Consultancy 
94.3% 
94.3% 
Amwal International Investment 
Company KSCP  
Kuwait 
Financial services 
87.2% 
87.2% 
NCM Investment Company K.S.C 
(Closed)  
Kuwait 
Brokerage and Trading 
44.5% 
44.5% 
Spadille Limited 
Jersey 
Investment holding 
85.0% 
85.0% 
Northacre Limited 
UK 
Development 
management 
83.9% 
83.9% 
Goldilocks Investment Company 
Limited (ii) 
UAE 
Investment holding 
34.4% 
34.4% 
Squadron Properties (ii) 
Cayman 
Islands 
Investment holding 
33.0% 
33.0% 
Astrea Asset Management 
Limited (ii) 
UK 
Property management 
33.0% 
33.0% 
 
 
93     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
1. 
LEGAL STATUS AND ACTIVITIES (continued) 
 
Group structure (continued) 
Name of the entity 
Place of 
incorporation 
Principal  
activity 
Effective 
ownership 
interest % 
Effective 
ownership 
interest % 
 
 
 
31 
December 
 31 
December 
 
 
 
2021 
2020 
Eagle T2  
Cayman 
Islands 
Investment holding 
100.0% 
100.0% 
Thalassa Investment LP 
Cayman 
Islands 
Investment holding 
- 
57.4% 
 
Material Associates 
 
 
 
 
City Engineering LLC 
UAE 
Contracting 
40.0% 
40.0% 
Qannas Investments Limited (“QIL”) 
Cayman 
Islands 
Investment holding 
35.5% 
35.5% 
SHUAA Hospitality Fund I L.P. (iii) 
Cayman 
Islands 
Investment holding 
33.1% 
27.0% 
SHUAA Saudi Hospitality Fund I (iii) 
Saudi Arabia 
Investment holding 
33.2% 
26.3% 
Mirfa Power Holding Company 
PJSC*** 
UAE 
Investment holding 
- 
25.0% 
ADCORP Limited * 
UAE 
Islamic financial 
institution 
24.8% 
19.8% 
Khaleeji Commercial Bank B.S.C. (vi) 
*** 
Bahrain 
Islamic retail bank 
- 
3.9% 
Thalassa Investment LP **** 
Cayman 
Islands 
Investment holding 
25.9% 
- 
 
* 
These subsidiaries and associates are under liquidation. 
** 
Liquidated in 2021 
*** 
Disposed in 2021 
****         Loss of control and accounted for as an associate. 
 
(i) 
Effective ownership interest of 50% in BBD Partners GP is held through a subsidiary. 
 
(ii) 
Based on the concept of 'control' as stipulated in IFRS 10, ADFG concluded that although it has less than 
50% voting rights in the above-mentioned entities, it has ‘de facto’ control based on respective size of 
its holding of voting rights relative to the holdings of other vote holders and its representation on the 
investee’s Board of Directors. In addition, the Group has determined that it has control and therefore 
consolidates the Fund, as it is exposed to its variable returns and has the key decision-making powers 
necessary to affect the amount of those returns in its capacity as investment manager. Accordingly, the 
above-mentioned entities have been consolidated in these financial statements.  
 
(iii) 
SHUAA Hospitality Fund I L.P., a closed ended private equity investment fund registered as an exempted 
limited partnership in the Cayman Islands. As a consequence of cross investment holdings by this fund 
the Group indirectly owns 26.3% of SHUAA Saudi Hospitality Fund I, a closed ended investment fund 
regulated by the Capital Markets Authority in Saudi Arabia. SHUAA acts as an agent to the fund and 
not as principal. 
 
(iv) 
The Group has treated the above-mentioned entities as associates although it has less than 20% voting 
rights in these entities based on its ability to significantly influence the operating and financial policy 
decisions of these entities through its representation on the Board of Directors of these entities. 
 
 
94     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
2. 
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) 
 
2.1 
New and revised IFRS adopted in the consolidated financial statements 
 
The following new and revised IFRS, which became effective for annual periods beginning on or after 1 January 
2021, have been adopted in these consolidated financial statements. The application of these revised IFRSs, 
except where stated, have not had any material impact on the amounts reported for the current and prior year. 
 
Title  
Key requirements  
Effective 
Date   
Covid-19-
related Rent 
Concessions – 
Amendments 
to IFRS 16 
As a result of the COVID-19 pandemic, rent concessions have been granted to 
lessees. Such concessions might take a variety of forms, including payment 
holidays and deferral of lease payments. In May 2020, the IASB made an 
amendment to IFRS 16 Leases which provides 
lessees with an option to treat qualifying rent concessions in the same way as 
they would if they were not lease modifications. In many cases, this will result in 
accounting for the concessions as variable lease payments in the period in 
which they are granted. 
Entities applying the practical expedients must disclose this fact, whether the 
expedient has been applied to all qualifying rent concessions or, if not, 
information about the nature of the contracts to which it has been applied, as 
well as the amount recognised in profit or loss arising from the rent concessions. 
* The relief was originally limited to reduction in lease payments that were due 
on or before 30 June 2021. However, the IASB subsequently extended this date to 
30 June 2022. If a lessee already applied the original practical expedient, it is 
required to continue to apply it consistently, to all lease contracts with similar 
characteristics and in similar circumstances, using the subsequent amendment. If 
a lessee did not apply the original practical expedient to 
eligible lease concessions, it is prohibited from applying the expedient in the 
2021 amendment. However, if a lessee has not yet established an accounting 
policy on applying (or not) the practical expedient to eligible lease concessions, 
it can still decide to do so. 
  
1 June 
2020/ 
1 April 
2021*  
Interest Rate 
Benchmark 
Reform Phase 2 
– Amendments 
to IFRS 9, IAS 
39, IFRS 7, IFRS 
4 and 
IFRS 16 
In August 2020, the IASB made amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and 
IFRS 16 to address the issues that arise during the reform of an interest rate 
benchmark rate, including the replacement of one benchmark with an alternative 
one. 
The Phase 2 amendments provide the following reliefs: 
• 
When changing the basis for determining contractual cash flows for 
financial assets and liabilities (including lease liabilities), the reliefs have 
the effect that the changes, that are necessary as a direct consequence 
of IBOR reform and which are considered economically equivalent, will 
not result in an immediate gain or loss in the income statement. 
• 
The hedge accounting reliefs will allow most IAS 39 or IFRS 9 hedge 
relationships that are directly affected by IBOR reform to continue. 
However, additional ineffectiveness might need to be recorded. 
Affected entities need to disclose information about the nature and extent 
of risks arising from IBOR reform to which the entity is exposed, how the 
entity manages those risks, and the entity’s progress in completing the 
transition to alternative benchmark rates and how it is managing that 
transition. 
Given the pervasive nature of IBOR-based contracts, the reliefs could 
affect companies in all industries. 
1 January 
2021  
 
 
The Group has assessed the impact of these amendments and no material impacts are expected as at the 
year ended 31 December 2021 
 
95     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
2. 
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) 
(continued) 
 
2.2 
New and revised IFRS in issue but not yet effective and not early adopted 
 
New and 
revised IFRS 
Key requirements  
Effective 
Date  
Classification 
of Liabilities 
as Current or 
Non-current – 
Amendments 
to IAS 1  
The narrow-scope amendments to IAS 1 Presentation of Financial Statements 
clarify that liabilities are classified as either current or non-current, depending 
on the rights that exist at the end of the reporting period. Classification is 
unaffected by the expectations of the entity or events after the reporting date 
(e.g. the receipt of a waver or a breach of covenant). The amendments also clarify 
what IAS 1 means when it refers to the ‘settlement’ of a liability.  
The amendments could affect the classification of liabilities, particularly for 
entities that previously considered management’s intentions to determine 
classification and for some liabilities that can be converted into equity.  
They must be applied retrospectively in accordance with the normal 
requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and 
Errors.  
In May 2020, the IASB issued an Exposure Draft proposing to defer the effective 
date of the amendments to 1 January 2023.  
 
1 January 
2022 
[possibly 
deferred 
to 1 
January 
2023]  
Property, 
Plant and 
Equipment: 
Proceeds 
before 
intended use 
– 
Amendments 
to IAS 16 
The amendment to IAS 16 Property, Plant and Equipment (PP&E) prohibits an 
entity from deducting from the cost of an item of PP&E any proceeds received 
from selling items produced while the entity is preparing the asset for its 
intended use. It also clarifies that an entity is ‘testing whether the asset is 
functioning properly’ when it assesses the technical and physical performance 
of the asset. The financial performance of the asset is not relevant to this 
assessment.  
 
Entities must disclose separately the amounts of proceeds and costs relating to 
items produced that are not an output of the entity’s ordinary activities. 
1 January 
2022 
Reference to 
the 
Conceptual 
Framework – 
Amendments 
to IFRS 3 
Minor amendments were made to IFRS 3 Business Combinations to update the 
references to the Conceptual Framework for Financial Reporting and add an 
exception for the recognition of liabilities and contingent liabilities within the 
scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and 
Interpretation 21 Levies. The amendments also confirm that contingent assets 
should not be recognised at the acquisition date. 
1 January 
2022 
Onerous 
Contracts – 
Cost of 
Fulfilling a 
Contract 
Amendments 
to IAS 37 
The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract 
include both the incremental costs of fulfilling the contract and an allocation of 
other costs directly related to fulfilling contracts. Before recognising a separate 
provision for an onerous contract, the entity recognises any impairment loss that 
has occurred on assets used in fulfilling the contract. 
1 January 
2022 
Annual 
Improvement
s to IFRS 
Standards 
2018–2020  
The following improvements were finalised in May 2020:  
• 
IFRS 9 Financial Instruments – clarifies which fees should be included in the 
10% test for derecognition of financial liabilities.  
• 
IFRS 16 Leases – amendment of illustrative example 13 to remove the 
illustration of payments from the lessor relating to leasehold improvements, 
to remove any confusion about the treatment of lease incentives.  
• 
IFRS 1 First-time Adoption of International Financial Reporting Standards – 
allows entities that have measured their assets and liabilities at carrying 
amounts recorded in their parent’s books to also measure any cumulative 
translation differences using the amounts reported by the parent. This 
amendment will also apply to associates and joint ventures that have 
taken the same IFRS 1 exemption.  
• 
IAS 41 Agriculture – removal of the requirement for entities to exclude cash 
flows for taxation when measuring fair value under IAS 41. This amendment 
is intended to align with the requirement in the standard to discount cash 
flows on a post-tax basis.  
 
1 January 
2022  
 
 
96     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
2. 
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) 
(continued) 
 
2.2 New and revised IFRS in issue but not yet effective and not early adopted (continued) 
 
New and revised 
IFRS  
Key requirements  
Effective 
Date  
Disclosure of 
Accounting 
Policies – 
Amendments to 
IAS 1 and IFRS 
Practice 
Statement 2 
The IASB amended IAS 1 to require entities to disclose their material rather 
than their significant accounting policies. The amendments define what is 
‘material accounting policy information’ and explain how to identify when 
accounting policy information is material. They further clarify that 
immaterial accounting policy information does not need to be disclosed. If 
it is disclosed, it should not obscure material accounting information.   
To support this amendment, the IASB also amended IFRS Practice 
Statement 2 Making Materiality Judgements to provide guidance on how 
to apply the concept of materiality to accounting policy disclosures.   
 
1 January 
2023 
Definition of 
Accounting 
Estimates – 
Amendments to 
IAS 8 
The amendment to IAS 8 Accounting Policies, Changes in Accounting 
Estimates and Errors clarifies how companies should distinguish changes 
in accounting policies from changes in accounting estimates. The 
distinction is important, because changes in accounting estimates are 
applied prospectively to future transactions and other future events, but 
changes in accounting policies are generally applied retrospectively to 
past transactions and other past events as well as the current period.   
 
1 January 
2023 
Deferred Tax 
related to Assets 
and Liabilities 
arising from a 
Single 
Transaction – 
Amendments to 
IAS 12 
The amendments to IAS 12 Income Taxes require companies to recognise 
deferred tax on transactions that, on initial recognition, give rise to equal 
amounts of taxable and deductible temporary differences. They will 
typically apply to transactions such as leases of lessees and 
decommissioning obligations and will require the recognition of additional 
deferred tax assets and liabilities. 
The amendment should be applied to transactions that occur on or after 
the beginning of the earliest comparative period presented. In addition, 
entities should recognise deferred tax assets (to the extent that it is 
probable that they can be utilised) and deferred tax liabilities at the 
beginning of the earliest comparative period for all deductible and 
taxable temporary differences associated with: 
• 
right-of-use assets and lease liabilities, and 
• 
decommissioning, restoration and similar liabilities, and the 
corresponding amounts recognised as part of the cost of the 
related assets. 
The cumulative effect of recognising these adjustments is recognised in 
retained earnings, or another component of equity, as appropriate. IAS 12 
did not previously address how to account for the tax effects of on-balance 
sheet leases and similar transactions and various approaches were 
considered acceptable. Some entities may have already accounted for 
such transactions consistent with the new requirements. These entities will 
not be affected by the amendments. 
 
1 January 
2023 
 
 
 
97     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
2. 
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) 
(continued) 
 
2.2 New and revised IFRS in issue but not yet effective and not early adopted (continued) 
 
Sale or 
contribution of 
assets between 
an investor and 
its associate or 
joint venture – 
Amendments to 
IFRS 10 and IAS 
28  
The IASB has made limited scope amendments to IFRS 10 Consolidated 
financial statements and IAS 28 Investments in associates and joint 
ventures.  
 
The amendments clarify the accounting treatment for sales or contribution 
of assets between an investor and its associates or joint ventures. They 
confirm that the accounting treatment depends on whether the non-
monetary assets sold or contributed to an associate or joint venture 
constitute a ‘business’ (as defined in IFRS 3 Business Combinations).  
 
Where the non-monetary assets constitute a business, the investor will 
recognise the full gain or loss on the sale or contribution of assets. If the 
assets do not meet the definition of a business, the gain or loss is 
recognised by the investor only to the extent of the other investor’s interests 
in the associate or joint venture. The amendments apply prospectively.  
 
** In December 2015 the IASB decided to defer the application date of this 
amendment until such time as the IASB has finalised its research project on 
the equity method.  
n/a **  
 
 
The Group is currently assessing the impact of these standards, interpretations and amendments on the future 
financial statements and intends to adopt these, if applicable, when they become effective. There are no other 
relevant applicable new standards and amendments to published standards or IFRIC interpretations that have 
been issued but are not effective for the first time for the Group’s financial year beginning on 1 January 2022 that 
would be expected to have a material impact on the consolidated financial statements of the Group. 
 
 
98     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
3.1 
Basis of preparation 
 
The consolidated financial statements of the Group have been prepared in accordance with IFRS and 
applicable provisions of Federal Law No 2 of 2015 as amended of the United Arab Emirates. The consolidated 
financial statements are presented in thousands of United Arab Emirates Dirhams since that is the currency of 
the country in which the parent (ADFG), is domiciled and the majority of the Group’s business is transacted. 
 
Federal Decree Law No. 26 of 2020 which amends certain provisions of Federal Law No. 2 of 2015 as amended 
on Commercial Companies was issued on 27 September 2020 and the amendments came into effect on 2 
January 2021. The Company has reviewed the new provisions and applied the requirements during the period.  
 
The consolidated financial statements have been prepared on the historical cost convention as modified for the 
measurement at fair value of certain financial instruments. Historical cost is generally based on the fair value of 
the consideration given in exchange for assets. Fair value is the price that would be received to sell an asset or 
paid to transfer a liability in an orderly transaction between market participants at the measurement date, 
regardless of whether that price is directly observable or estimated using another valuation technique. 
 
3.2 
Basis of consolidation 
 
Subsidiaries are those investees that the Group controls because the Group (i) has power to direct relevant 
activities of the investees that significantly affect their returns, (ii) has exposure, or rights, to variable returns from 
its involvement with the investees, and (iii) has the ability to use its power over the investees to affect the amount 
of investor’s returns. The existence and effect of substantive rights, including substantive potential voting rights, 
are considered when assessing whether the Group has power over another entity. For a right to be substantive, 
the holder must have practical ability to exercise that right when decisions about the direction of the relevant 
activities of the investee need to be made. The Group may have power over an investee even when it holds less 
than majority of voting power in an investee. In such a case, the Group assesses the size of its voting rights 
relative to the size and dispersion of holdings of the other vote holders to determine if it has de-facto power 
over the investee. Protective rights of other investors, such as those that relate to fundamental changes of 
investee’s activities or apply only in exceptional circumstances, do not prevent the Group from controlling an 
investee. Subsidiaries are consolidated from the date on which control is transferred to the Group and are 
deconsolidated from the date on which control ceases.  
 
The acquisition method of accounting is used to account for the acquisition of subsidiaries. Identifiable assets 
acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair 
values at the acquisition date, irrespective of the extent of any non-controlling interest. 
 
Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests 
which are not owned, directly or indirectly, by the Group. The Group measures non-controlling interest on a 
transaction by transaction basis at the non-controlling interest's proportionate share of net assets of the 
acquiree. Non-controlling interest forms a separate component of the Group’s equity. 
 
Goodwill is measured by deducting the net assets of the acquiree from the aggregate of the consideration 
transferred for the acquiree, the amount of non-controlling interest in the acquiree and fair value of an interest 
in the acquiree held immediately before the acquisition date. Any negative amount (“negative goodwill”) is 
recognised in consolidated statement of profit or loss, after management reassesses whether it identified all 
the assets acquired and all liabilities and contingent liabilities assumed, and reviews appropriateness of their 
measurement. 
 
The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity 
instruments issued and liabilities incurred or assumed, including fair value of assets or liabilities from contingent 
consideration arrangements, but excludes acquisition related costs such as advisory, legal, valuation and similar 
professional services. Transaction costs incurred for issuing equity instruments are deducted from equity; 
transaction costs incurred for issuing debt are deducted from its carrying amount and all other transaction costs 
associated with the acquisition are expensed. 
 
Intercompany transactions, balances and unrealised gains on transactions between group companies are 
eliminated; unrealised losses are also eliminated unless the cost cannot be recovered. ADFG and all of its 
subsidiaries use uniform accounting policies consistent with the Group’s policies. 
 
 
 
99     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.2 
Basis of consolidation (continued) 
 
The entities included in the consolidation may vary year on year due to both the restructuring of the Group 
(including acquisitions and disposals) and changes to the number and net assets of pooled investment vehicles 
managed by the Group where the shareholding in the year results in control, as defined by IFRS. In such cases, 
the investment vehicle is consolidated, and the third-party interest is normally recorded as a financial liability. 
The treatment continues until the Group loses control, as defined by IFRS. 
 
The principal accounting policies are set out below. These policies have been consistently applied to each of 
the years presented, unless otherwise stated. 
 
 
3.3 
Property and equipment  
 
Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. 
Historical cost includes expenditure that is directly attributable to the acquisition of the asset. 
 
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, 
only when it is probable that future economic benefits associated with the item will flow to the Group and the 
cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to profit or 
loss during the financial period in which they are incurred. 
 
Depreciation is charged to write off the cost of assets over their estimated useful lives, using the straight-line 
method on the following basis: 
 
Years 
Leasehold improvements 
1-10  
Office equipment 
3-5 
Motor vehicle 
5 
Furniture and fixtures 
3-5 
Buildings 
40 
Right-of-use asset 
Lease term 
 
The estimated useful lives, residual values and depreciation methods are reviewed at each year end, with the 
effect of any changes in estimate accounted for on a prospective basis. 
 
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the 
sales proceeds and the carrying amount of the asset and is recognised in profit or loss. 
 
Artworks and paintings included under property and equipment are not depreciated. Subsequent to initial 
measurement, these assets are measured at fair value.  
 
3.4 
Impairment of non-financial assets 
 
At the end of each reporting period, the Group reviews the carrying amounts of its non-financial assets to 
determine whether there is any indication that those assets have suffered an impairment loss. If any such 
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the 
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the 
Group estimates the recoverable amount of the cash generating unit to which the asset belongs. Where a 
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to 
individual cash generating units, or otherwise they are allocated to the smallest group of cash generating units 
for which a reasonable and consistent allocation basis can be identified. 
 
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the 
estimated future cash flows are discounted to their present value using a discount rate that reflects current 
market assessments of the time value of money and the risks specific to the asset. 
 
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, 
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment 
loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which 
case the impairment loss is treated as a revaluation decrease. 
 
 
100     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.4 
Impairment of non-financial assets (continued) 
 
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is 
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does 
not exceed the carrying amount that would have been determined had no impairment loss been recognised 
for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately 
in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the 
impairment loss is treated as a revaluation increase. 
 
3.5 
Finance cost 
 
All borrowing costs are recognised in profit or loss in the period during which they are incurred. Borrowing costs 
which are directly attributable to the development of a qualifying asset are capitalised. Interest is calculated 
using the effective interest method is recognised in profit or loss and is included in ‘Finance cost’. The effective 
interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received 
that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) 
through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying 
amount on initial recognition. 
 
3.6 
Inventories 
 
Inventories are valued at the lower of cost and net realisable value. Cost of work in progress includes overheads 
appropriated to the stage of development. Net realisable value is based upon estimated selling prices less 
further costs expected to be incurred on completion and disposal. 
 
3.7 
Treasury shares 
 
Where the Company or its subsidiaries purchase SHUAA equity instruments, the consideration paid, including 
any directly attributable incremental external costs, net of income taxes, is deducted from equity attributable 
to the Owners until the equity instruments are reissued, disposed of or cancelled. Where such shares are 
subsequently disposed of or reissued, any consideration received is included in equity. 
 
3.8 
Revenue recognition 
 
Net fee and commission income 
Fee income is earned from a diverse range of services provided by the Group to its customers and are accounted 
for in accordance with IFRS 15 ‘Revenue from Contracts with Customers’. Under the IFRS 15, fee income is 
measured by the Group based on the consideration specified in a contract with a customer and excludes 
amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a 
product or service to a customer. 
 
Fee income is accounted for as follows: 
(i) 
income earned on the execution of a significant act is recognised as revenue when the act is completed 
(for example, fees arising from negotiating, or participating in the negotiation of a transaction for a 
third-party, such as an arrangement for the acquisition of shares or other securities); 
(ii) 
income earned from the provision of services is recognised as revenue as the services are provided (for 
example, asset management, portfolio and other management advisory and service fees); and 
(iii) 
other fees and commission income and expense are recognised as the related services are performed 
or received. 
 
Advisory income 
Advisory income includes retainer and consultancy fees. It is accrued and recognised as the services are 
rendered, in accordance with the agreement with the client. Revenue is recognised only when it is probable that 
the economic benefits associated with the transaction will flow to the Group. Revenue from services is stated 
net of rebates and other allowances. 
 
Interest income 
Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective 
interest rate applicable.  
 
 
 
101     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.8 
Revenue recognition (continued) 
 
Carried interest 
The Group is entitled to receive performance fees (“carried interest”) from qualified funds which it manages. 
These fees are earned once the funds meet certain performance conditions. The carried interest is calculated 
annually at the reporting date as per the guidance provided by IFRS 15, taking into account the required 
performance conditions and distribution arrangement. Carried interest recognised by the Group is subject to a 
constraint. The Group recognises revenue at an amount for which it is highly probable that a significant reversal 
in the amount of cumulative revenue recognised will not occur in future periods. 
 
The Group’s employees are entitled to performance incentives linked to the realised Internal Rate of Return set 
for certain qualified funds, which vest progressively, subject to continued employment and the investment exit, 
provided certain minimum pre-established return hurdles are satisfied. These are recognised as carried interest 
expense.  
 
Income from finance lease 
Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial 
assets, except for: 
 
a) Purchased or originated credit-impaired (POCI) financial assets, for which the original credit-adjusted 
effective interest rate is applied to the amortized cost of the financial asset. 
 
b) Financial assets that are not 'POCI' but have subsequently become credit-impaired (or 'stage 3'), for which 
interest revenue is calculated by applying the effective interest rate to their amortized cost (i.e., net of the 
expected credit loss)  
 
Processing fee  
Processing fees and other operating income represent administration fees which include leases initiation and 
customer risk assessment. Processing fee income is recognized over the period of the lease using the effective 
rate method, which results in a constant periodic rate of return on the net investment outstanding. 
 
Dividend income 
Dividend income from investments is recognised when the Group’s right to receive payment has been 
established. 
 
3.9 
Provisions 
 
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past 
event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made 
of the amount of the obligation.  
 
The amount recognised as a provision is the best estimate of the consideration required to settle the present 
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the 
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its 
carrying amount is the present value of those cash flows (when the effect of the time value of money is material). 
 
When some or all of the economic benefits required to settle a provision are expected to be recovered from a 
third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received 
and the amount of the receivable can be measured reliably. 
 
3.10 
Employee benefits 
 
A provision is made for the full amount of end of service benefits due to non-UAE national employees in 
accordance with the Group’s policy, which is at least equal to the benefits payable in accordance with UAE 
Labour Law, for their period of service up to the end of the reporting period.  
 
Pension contributions are made in respect of UAE national employees to the UAE General Pension and Social 
Security Authority in accordance with the UAE Federal Law No (9) of 2000 for Pension and Social Security. Such 
contributions are charged to profit or loss during the employees’ period of service. 
 
 
102     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.11 
Foreign currencies 
 
The functional currency of each of the Group’s consolidated entities is the currency of the primary economic 
environment in which the entity operates. The functional currency of ADFG and the Group’s presentation currency 
is the U.A.E Dirhams (AED).  
 
Transactions in currencies other than AED (foreign currencies) are recorded at the rates of exchange prevailing 
at the dates of the transactions. At the end of the reporting period, monetary items denominated in foreign 
currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that 
are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value 
was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not 
retranslated. Exchange differences are recognised in profit or loss in the period in which they arise. 
 
Loans between group entities and related foreign exchange gains or losses are eliminated upon consolidation. 
However, where the loan is between group entities that have different functional currencies, the foreign 
exchange gain or loss cannot be eliminated in full and is recognised in the consolidated statement of profit or 
loss, unless the loan is not expected to be settled in the foreseeable future and thus forms part of the net 
investment in foreign operation. In such a case, the foreign exchange gain or loss is recognised in other 
comprehensive income and accumulated in a separate component of equity. 
 
The results and financial position of each group entity are translated into the presentation currency as follows:  
i) 
assets and liabilities for each statement of financial position presented are translated at the closing 
rate at the end of the respective reporting period;  
ii) 
income and expenses are translated at average exchange rates (unless this average is not a 
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in 
which case income and expenses are translated at the dates of the transactions);  
iii) 
components of equity are translated at the historic rate; and  
iv) 
all resulting exchange differences are recognised in other comprehensive income. 
 
When control over a foreign operation is lost, the exchange differences previously recognised in other 
comprehensive income are reclassified to the consolidated statement of profit or loss for the year as part of the 
gain or loss on disposal. On partial disposal of a subsidiary without loss of control, the related portion of 
accumulated currency translation differences is reclassified to non-controlling interest within equity. Goodwill 
and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of 
the foreign entity and translated at the closing rate.  
 
3.12 
Financial instruments 
 
Financial instruments comprise of financial assets and financial liabilities that are recognised in the Group's 
statement of financial position when the Group becomes a party to the contractual provisions of the instrument.  
 
Initial recognition – financial assets 
 
Financial instruments at Fair value through profit and loss (FVTPL) are initially recorded at fair value. All other 
financial instruments are initially recorded at fair value adjusted for transaction costs. Fair value at initial 
recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if 
there is a difference between fair value and transaction price which can be evidenced by other observable 
current market transactions in the same instrument or by a valuation technique whose inputs include only data 
from observable markets. After the initial recognition, an Expected Credit Loss (ECL) allowance is recognised for 
financial assets measured at Amortised Cost (AC) and investments in debt instruments measured at Fair value 
through other comprehensive income (FVOCI), resulting in an immediate accounting loss. 
 
All purchases and sales of financial assets that require delivery within the time frame established by regulation 
or market convention (“regular way” purchases and sales) are recorded at trade date, which is the date on which 
the Group commits to deliver a financial asset. All other purchases are recognised when the entity becomes a 
party to the contractual provisions of the instrument. 
 
 
 
103     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly 
transaction between market participants at the measurement date. The best evidence of fair value is price in 
an active market. An active market is one in which transactions for the asset or liability take place with sufficient 
frequency and volume to provide pricing information on an ongoing basis. Fair value of financial instruments 
traded in an active market is measured as the product of the quoted price for the individual asset or liability 
and the quantity held by the entity. This is the case even if a market’s normal daily trading volume is not sufficient 
to absorb the quantity held and placing orders to sell the position in a single transaction might affect the 
quoted price.  
 
Computation of fair value is based on valuation techniques such as discounted cash flow models or models 
based on recent arm’s length transactions or consideration of financial data of the investees, are used to 
measure fair value of certain financial instruments for which external market pricing information is not available. 
Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are 
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two 
measurements are valuations techniques with all material inputs observable for the asset or liability, either 
directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are 
valuations not based on solely observable market data (that is, the measurement requires significant 
unobservable inputs). Transfers between levels of the fair value hierarchy are deemed to have occurred at the 
end of the reporting period (Note 24.1). 
 
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a 
financial instrument. An incremental cost is one that would not have been incurred if the transaction had not 
taken place. Transaction costs include fees and commissions paid to agents (including employees acting as 
selling agents), advisors, brokers and dealers, levies by regulatory agencies and securities exchanges, and 
transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or 
internal administrative or holding costs. Transaction costs that are directly attributable to the acquisition or 
issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value 
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, 
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets 
or financial liabilities at FVTPL are recognised immediately in profit or loss. 
 
Classification- financial assets 
 
Financial assets can either be (i) equity financial assets or (ii) debt financial assets. The Group classifies financial 
assets in the following measurement categories: FVTPL, FVOCI and AC. The classification depends on (i) the 
Group’s business model for managing the related assets portfolio and (ii) the cash flow characteristics of the 
asset. 
 
The business model reflects how the Group manages the assets in order to generate cash flows – whether the 
Group’s objective is: (i) solely to collect the contractual cash flows from the assets (“hold to collect contractual 
cash flows”,) or (ii) to collect both the contractual cash flows and the cash flows arising from the sale of assets 
(“hold to collect contractual cash flows and sell”) or, if neither of (i) and (ii) is applicable, the financial assets are 
classified as part of “other” business model and measured at FVTPL.  
 
The business model is determined for a group of assets (on a portfolio level) based on all relevant evidence 
about the activities that the Group undertakes to achieve the objective set out for the portfolio available at the 
date of the assessment. Factors considered by the Group in determining the business model include the purpose 
and composition of a portfolio, past experience on how the cash flows for the respective assets were collected, 
how risks are assessed and managed, how the assets’ performance is assessed and how managers are 
compensated. Note 4.1 includes critical judgements applied by the Group in determining the business models 
for its financial assets. 
 
Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash flows 
and sell, the Group assesses whether the cash flows represent solely payments of principal and interest (“SPPI”). 
In making this assessment, the Group considers whether the contractual cash flows are consistent with a basic 
lending arrangement, i.e. interest includes only consideration for credit risk, time value of money, other basic 
lending risks and profit margin.  
 
 
 
104     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Classification- financial assets (continued) 
 
Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending 
arrangement, the financial asset is classified and measured at FVTPL. The SPPI assessment is performed on 
initial recognition of an asset and it is not subsequently reassessed. Note 4.1 includes for critical judgements 
applied by the Group in performing the SPPI test for its financial assets. 
 
Debt financial assets that meet the following conditions are measured subsequently at amortised cost: 
• 
the financial asset is held within a business model whose objective is to hold financial assets in order 
to collect contractual cash flows; and 
• 
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely 
payments of principal and interest on the principal amount outstanding. 
 
Debt financial assets that meet the following conditions are measured subsequently at FVOCI: 
• 
the financial asset is held within a business model whose objective is achieved by both collecting 
contractual cash flows and selling the financial assets; and 
• 
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely 
payments of principal and interest on the principal amount outstanding. 
 
In addition, debt financial assets that meet either the amortised cost criteria or the FVOCI criteria may be 
designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a 
measurement or recognition inconsistency (so called ‘accounting mismatch') that would arise from measuring 
assets or liabilities or recognising the gains and losses on them on different bases. 
 
By default, all other financial assets (debt and equity financial assets) are measured subsequently at fair value 
through profit or loss (FVTPL). 
 
Despite the foregoing, the Group may make the following irrevocable election/designation at initial recognition 
for an equity financial asset: 
● 
the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in 
other comprehensive income if certain criteria are met; and 
● 
the Group may irrevocably designate a debt investment that meets the amortised cost or FVOCI criteria 
as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. 
 
Subsequent measurement – financial assets 
 
For purposes of subsequent measurement  
● 
Financial assets at AC (debt financial assets): Financial assets at amortised cost are subsequently 
measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are 
recognised in consolidated statement of profit or loss (P&L) when the asset is derecognised, modified 
or impaired.  
 
● 
For assets that are purchased or originated credit impaired (“POCI”) at initial recognition, the effective 
interest rate is adjusted for credit risk, i.e. it is calculated based on the expected cash flows on initial 
recognition instead of contractual payments. 
 
● 
Financial assets at FVOCI with recycling of cumulative gains and losses (debt financial assets): For debt 
instruments at FVOCI, interest income, foreign exchange revaluation and impairment losses or reversals 
are recognised in the consolidated statement of profit or loss and computed in the same manner as 
for financial assets measured at amortised cost. The remaining fair value changes are recognised in 
consolidated statement of other comprehensive income (OCI). Upon derecognition, the cumulative fair 
value change recognised in OCI is recycled to P&L.  
 
 
 
105     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Subsequent measurement – financial assets (continued) 
 
● 
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses 
upon derecognition (equity financial assets): Upon initial recognition, the Group can elect to classify 
irrevocably its equity investments as equity instruments designated at fair value through OCI when they 
meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for 
trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on 
these financial assets are never recycled to P&L. Dividends are recognised as other income in P&L when 
the right of payment has been established, except when the Group benefits from such proceeds as a 
recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity 
instruments designated at FVOCI are not subject to impairment assessment.   
 
● 
Financial assets at FVTPL (debt and equity financial assets): Financial assets at FVTPL are carried in the 
statement of financial position at fair value with net changes in fair value recognised in P&L. Dividends 
on listed equity investments are recognised as other income in the P&L when the right of payment has 
been established. Interest income on debt financial assets is also recognised in the P&L. 
 
Impairment - financial assets 
 
Measurement of ECL: IFRS 9 outlines a 'three-stage' model for impairment of financial assets based on changes 
in credit quality since initial recognition. A financial instrument that is not credit-impaired on initial recognition 
is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion 
of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if 
shorter (“12 Months ECL”). If the Group identifies a significant increase in credit risk (“SICR”) since initial recognition, 
the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until 
contractual maturity but considering expected prepayments, if any (“Lifetime ECL”). If the Group determines that 
a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL. 
Note 4.1 includes how the Group determines when a SICR has occurred. Note 4.1 also provides information about 
inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the 
Group incorporates forward-looking information in the ECL models.  
 
The key inputs into the measurement of ECL are the term structure of the following variables: 
• 
probability of default (PD); 
• 
loss given default (LGD); 
• 
exposure at default (EAD) 
 
These parameters are generally derived from internally developed statistical models and other historical data. 
They are adjusted to reflect forward-looking information. Details of these statistical parameters/inputs are as 
follows: 
 
PD -  
The probability of default is an estimate of the likelihood of default over a given time horizon. 
EAD -  
The exposure at default is an estimate of the exposure at a future default date, taking into account 
expected changes in the exposure after the reporting date. 
LGD -  
The loss given default is an estimate of the loss arising in the case where a default occurs at a given 
time. It is based on the difference between the contractual cash flows due and those that the lender 
would expect to receive, including from the realisation of any collateral. It is usually expressed as a 
percentage of the EAD. 
ECL  
are probability-weighted estimate of credit losses. They are measured as follows: 
• 
financial assets that are not credit-impaired at the reporting date: as the present value of all cash 
shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract 
and the cash flows that the Group expects to receive). 
• 
financial assets that are credit-impaired at the reporting date: as the difference between the gross 
carrying amount and the present value of estimated future cash flows; and 
• 
financial guarantee contracts: the expected payments to reimburse the holder less any amounts that 
the Group expects to recover. 
 
 
 
106     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Impairment - financial assets (continued) 
 
The Group applies three-stage model for impairment, based on changes in credit quality since initial recognition 
to recognise loss allowances for expected credit losses (ECL) on the following financial instruments that are not 
measured at FVTPL: 
● 
loans and advances and other financial assets including finance leases; 
● 
financial assets that are debt investments; 
● 
financial guarantee contracts; and 
● 
trade receivables and contract assets included in receivables and debit balances. 
 
No impairment loss is recognised on equity investments. 
 
For financial assets that are purchased or originated credit-impaired (“POCI Assets”), the ECL is always 
measured as a Lifetime ECL. 
 
For trade receivables or contract assets that do not contain a significant financing component, the Group 
records loss allowance at initial recognition and throughout its life at an amount equal to Lifetime ECL. 
 
Financial assets measured at AC are presented in the consolidated statement of financial position net of the 
allowance for ECL. For financial assets at FVOCI, changes in amortised cost, net of allowance for ECL, are 
recognised in P&L and other changes in carrying value are recognised in OCI.  
 
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt 
financial assets carried at FVOCI are credit-impaired. A financial asset is ‘credit impaired’ when one or more 
events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. 
Evidence that a financial asset is credit-impaired includes the following observable data: 
● 
significant financial difficulty of the borrower or issuer; 
● 
a breach of contract such as a default or past due event; 
● 
the restructuring of a loan or advance by the Group on terms that the Group would not consider 
otherwise; 
● 
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or 
● 
the disappearance of an active market for a security because of financial difficulties. 
 
Write-off - financial assets 
 
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial 
difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation 
or has entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement 
activities under the Group's recovery procedures, taking into account legal advice where appropriate. Any 
recoveries made are recognised in P&L. 
 
Derecognition - financial assets 
 
The Group derecognises financial assets when (a) the assets are redeemed or the rights to cash flows from the 
assets otherwise expired or (b) the Group has transferred the rights to the cash flows from the financial assets 
or entered into a qualifying pass-through arrangement while (i) also transferring substantially all risks and 
rewards of ownership of the assets or (ii) neither transferring nor retaining substantially all risks and rewards of 
ownership, but not retaining control. Control is retained if the counterparty does not have the practical ability 
to sell the asset in its entirety to an unrelated third party without needing to impose restrictions on the sale. 
 
 
 
107     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Modification - financial assets 
 
The Group sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The 
Group assesses whether the modification of contractual cash flows is substantial considering, among other, the 
following factors: any new contractual terms that substantially affect the risk profile of the asset, significant 
change in interest rate, change in the currency denomination, new collateral or credit enhancement that 
significantly affects the credit risk associated with the asset or a significant extension of a loan when the 
borrower is not in financial difficulties. The contractual terms of a lease receivable are mainly modified at the 
request of the customer. An existing lease receivable whose terms have been modified may be derecognized 
and the renegotiated lease receivable recognized as a new investment in Islamic financing at fair value. 
 
If the modified terms are substantially different, the rights to cash flows from the original asset expire and the 
Group derecognises the original financial asset and recognises a new asset at its fair value. The date of 
renegotiation is considered to be the date of initial recognition for subsequent impairment calculation 
purposes, including determining whether a SICR has occurred. The Group also assesses whether the new loan 
or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset 
derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the 
substance of the difference is attributed to a capital transaction with owners. 
 
In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to 
make the originally agreed payments, the Group compares the original and revised expected cash flows to 
assets whether the risks and rewards of the asset are substantially different as a result of the contractual 
modification. If the risks and rewards do not change, the modified asset is not substantially different from the 
original asset and the modification does not result in derecognition. 
 
The Group recalculates the gross carrying amount by discounting the modified contractual cash flows by the 
original effective interest rate (or credit-adjusted effective interest rate for POCI financial assets), and recognises 
a modification gain or loss in profit or loss. 
 
Initial recognition and classification - financial liabilities 
 
All financial liabilities are recognised initially at fair value and, in the case borrowings and other financial 
liabilities, net of directly attributable transaction costs.  
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL or financial liabilities at 
AC. 
 
Subsequent measurement – financial liabilities 
 
Financial liabilities at FVTPL: Financial liabilities at FVTPL include financial liabilities held for trading and 
financial liabilities designated upon initial recognition as at FVTPL including contingent consideration 
recognised by an acquirer in a business combination and financial guarantee contracts. Financial liabilities are 
classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category 
also includes derivative financial instruments entered into by the Group that are not designated as hedging 
instruments in hedge relationships as defined by IFRS 9. Gains or losses on liabilities held for trading are 
recognised in the statement of profit or loss. Financial liabilities designated upon initial recognition at FVTPL 
are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Group has not 
designated any financial liability as at fair value through profit or loss.  
 
Financial liabilities at AC: Financial liabilities at AC are subsequently measured at amortised cost using the EIR 
method. Gains and losses are recognised in P&L when the liabilities are derecognised as well as through the EIR 
amortisation process. Amortised cost is calculated by taking into account any discount or premium on 
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance 
costs in the P&L. 
 
 
 
 
108     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Financial guarantee contract liabilities 
 
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse 
the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with 
the terms of a debt instrument. 
 
Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at 
FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of: 
 
● 
the amount of the loss allowance determined in accordance with IFRS 9 (see financial assets above); 
and 
● 
the amount recognised initially less, where appropriate, cumulative amortisation recognised in 
accordance with the revenue recognition policies set out above. 
 
Derecognition of financial liabilities 
 
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, 
cancelled or they expire. 
 
An exchange between the Group and its original lenders of debt instruments with substantially different terms, 
as well as substantial modifications of the terms and conditions of existing financial liabilities, are accounted 
for as an extinguishment of the original financial liability and the recognition of a new financial liability. The 
terms are substantially different if the discounted present value of the cash flows under the new terms, including 
any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% 
different from the discounted present value of the remaining cash flows of the original financial liability. If an 
exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees 
incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modification is not 
accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and 
are amortised over the remaining term of the modified liability. 
 
Modifications of liabilities that do not result in extinguishment are accounted for as a change in estimate using 
a cumulative catch up method, with any gain or loss recognised in profit or loss, unless the economic substance 
of the difference in carrying values is attributed to a capital transaction with owners. 
 
Payables to unit holders 
 
Payable to unit holders mainly comprise liabilities that arise from obligations in respect of third-party interests 
in consolidated funds. Consolidation occurs when the Group is deemed to control a fund. When a fund is 
consolidated, the Group accounts for the fund in its consolidated statement of financial position as if it were 
wholly-owned by the Group, but records an additional liability representing the proportion of the fund owned 
by third party investors, where the units in the fund are puttable instruments (i.e. not classified as equity). The 
units of Goldilocks Investment Company Limited, a subsidiary of the Group, are redeemable at the unit holders’ 
option and therefore the Group has classified the units held by third parties as a financial liability.  
 
Profit/(Loss) for the fund attributable to these third-party holders of units is recognised in the consolidated 
statement of profit or loss as (finance cost)/finance credit relating to unit holders carried at fair value. 
 
Derivative financial instruments and hedge accounting 
 
The Group uses derivative financial instruments, such as forward currency contracts and interest rate swaps to 
hedge its foreign currency risks and interest rate risks, respectively. The Group’s risk management strategy and 
how it is applied to manage risk are explained in Note 25.  
 
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract 
is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when 
the fair value is positive and as financial liabilities when the fair value is negative.  
 
 
 
109     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Derivative financial instruments and hedge accounting (continued) 
 
For the purpose of hedge accounting, hedges are classified as:  
● 
Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or 
liability or an unrecognised firm commitment.   
● 
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to 
a particular risk associated with a recognised asset or liability or a highly probable forecast transaction 
or the foreign currency risk in an unrecognised firm commitment. 
 
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship 
to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking 
the hedge. The documentation includes identification of the hedging instrument, the hedged item, the nature of 
the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge 
effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio 
is determined).  
 
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:  
● 
There is ‘an economic relationship’ between the hedged item and the hedging instrument.  
● 
The effect of credit risk does not ‘dominate the value changes’ that result from that economic 
relationship.  
● 
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the 
hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group 
actually uses to hedge that quantity of hedged item.   
 
Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below: 
 
Fair value hedges: The change in the fair value of a hedging instrument is recognised in P&L as other 
income/expense. The change in the fair value of the hedged item attributable to the risk hedged is recorded as 
part of the carrying value of the hedged item and is also recognised in the P&L as other income/expense. 
 
Cash flow hedges: The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the 
cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or 
loss. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging 
instrument and the cumulative change in fair value of the hedged item. The Group uses forward currency 
contracts as hedges of its exposure to foreign currency risk in forecast transactions and firm commitments. The 
ineffective portion relating to foreign currency contracts is recognised as other income/expense. The Group 
designates only the spot element of forward contracts as a hedging instrument. The forward element is 
recognised in OCI and accumulated in a separate component of equity under cashflow hedge reserve.  
 
The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged 
transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount 
accumulated in equity is removed from the separate component of equity and included in the initial cost or 
other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be 
recognised in OCI for the period. This also applies where the hedged forecast transaction of a non-financial 
asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting 
is applied.  
 
For any other cash flow hedges, the amount accumulated in OCI is reclassified to P&L as a reclassification 
adjustment in the same period or periods during which the hedged cash flows affect profit or loss.  If cash flow 
hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated 
OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately 
reclassified to P&L as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any 
amount remaining in accumulated OCI must be accounted for depending on the nature of the underlying 
transaction as described above.  
 
For hedges that do not qualify for hedge accounting, any gains or losses arising from changes in the fair value 
of the hedging instrument are taken directly to the income statement for the year. 
 
 
110     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.12 
Financial instruments (continued) 
 
Derivative financial instruments and hedge accounting (continued) 
 
The effective interest method is a method of allocating interest income or interest expense over the relevant 
period, so as to achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The 
effective interest rate is the rate that exactly discounts estimated future cash payments or receipts (excluding 
future credit losses) through the expected life of the financial instrument or a shorter period, if appropriate, to 
the gross carrying amount of the financial instrument. 
 
Equity instruments 
 
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting 
all its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue 
costs. 
 
Share capital: Ordinary shares with discretionary dividends are classified as equity. Any excess of the fair value 
of consideration received over the par value of shares issued is recorded as share premium in equity. 
 
3.13 
Cash and cash equivalents 
 
Cash and cash equivalents for the purposes of consolidated statement of cash flows consist of cash and short-
term deposits with original maturity of 90 days or less, net of outstanding bank overdrafts as they are considered 
an integral part of the Group’s cash management.  
 
3.14 
Investment in associates 
 
The Group’s investments in associates are accounted for under the equity method of accounting. An associate 
is an entity in which the Group has significant influence, and which is neither a subsidiary nor an interest in a 
joint venture.  Significant influence is the power to participate in the financial and operating policy decisions of 
the investee but is not control or joint control over those policies. Under the equity method, an investment in an 
associate is initially recognised in the consolidated statement of financial position at cost and adjusted 
thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate. 
When the Group's share of losses of an associate exceeds the Group's interest in that associate (which includes 
any long-term interests that, in substance, form part of the Group's net investment in the associate), the Group 
discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the 
Group has incurred legal or constructive obligations or made payments on behalf of the associate. Any excess 
of the cost of acquisition over the Group's share of the net fair value of the identifiable assets, liabilities and 
contingent liabilities of an associate recognised at the date of acquisition is recognised as goodwill, which is 
included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of 
the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is 
recognised immediately in profit or loss. 
 
The requirements of IFRS 9 are applied to determine whether it is necessary to recognise any impairment loss 
with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the 
investment (including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by 
comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying 
amount. Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of 
that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the 
investment subsequently increases.  
 
Upon disposal of an associate that results in the Group losing significant influence over that associate, any 
retained investment is measured at fair value at that date and the fair value is regarded as its fair value on 
initial recognition as a financial asset in accordance with IFRS 9. The difference between the previous carrying 
amount of the associate attributable to the retained interest and its fair value is included in the determination 
of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously 
recognised in other comprehensive income in relation to that associate on the same basis as would be required 
if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously 
recognised in other comprehensive income by that associate would be reclassified to profit or loss on the 
disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as 
a reclassification adjustment) when it loses significant influence over that associate. 
 
111     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.15 
Leases 
 
Group as a Lessor 
 
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and 
rewards of ownership to the lessee. All other leases are classified as operating leases. 
 
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net 
investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant 
periodic rate of return on the Group’s net investment outstanding in respect of the leases. 
 
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. 
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount 
of the leased asset and recognised on a straight-line basis over the lease term. 
 
Ijara receivables  
 
Ijara finance is an agreement wherein gross amounts due under originated Ijara (finance) includes the total of 
future payments on Ijara finance, plus estimated residual amounts receivable (by an option to purchase the 
asset at the end of the respective financing term through an independent sale contract). The difference between 
the ijara contracts receivable and the cost of the ijara assets is recorded as unearned Ijara finance income and 
for presentation purposes, is deducted from the gross amounts due under Ijara finance. 
 
Group as a Lessee 
 
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract 
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The 
Group applies a single recognition and measurement approach for all leases, except for short-term leases and 
leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets 
representing the right to use the underlying assets. 
 
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying 
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and 
impairment losses, and adjusted for any remeasurement of lease liabilities. At the commencement date of the 
lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over 
the lease term. 
 
3.16 
Goodwill 
 
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the 
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the 
liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets 
acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree 
(if any), the excess is recognised immediately in profit or loss as a bargain purchase gain or negative goodwill. 
 
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of 
the business less accumulated impairment losses, if any. For the purposes of impairment testing, goodwill is 
allocated to each of the Group’s cash-generating units (or groups of cash-generating units) that is expected to 
benefit from the synergies of the combination. 
 
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more 
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-
generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying 
amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the 
carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. 
An impairment loss recognised for goodwill is not reversed in subsequent periods. On disposal of the relevant 
cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss 
on disposal. 
 
 
112     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
3. 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 
 
3.17 
Intangible assets acquired in a business combination 
 
Intangible assets acquired in a business combination and recognised separately from goodwill are initially 
recognised at their fair value at the acquisition date (which is regarded as their cost). 
 
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less 
accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that 
are acquired separately. 
 
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite 
useful lives are amortised on a straight-line basis over the intangible asset’s estimated useful lives over the 
following periods: 
 
Customer Relationships and Contracts 
1 – 21 years 
Trademark 
15 – 20 years  
 
Intangible assets with indefinite useful lives (Trade licenses) are not amortised but are tested for impairment 
annually at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine 
whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to definite 
is made on a prospective basis. 
 
3.18 
Non-controlling interests 
 
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share 
of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-
controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. 
The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling 
interests are measured at fair value or, when applicable, on the basis specified in another IFRS. 
 
3.19 
Non-current assets classified as held for sale and discontinued operations 
 
Non-current assets are classified as held for sale when their carrying amount is to be recovered principally 
through a sale transaction rather than continuing use and a sale is considered highly probable. They are stated 
at the lower of carrying amount and fair value less costs to sell. Impairment losses on initial classification as held 
for sale and subsequent gains or losses on remeasurement are recognised in the statement of profit or loss. 
 
The financial results of non-current assets classified as held for sale that meet the definition of a discontinued 
operation are presented as a single line in the statement of profit or loss and statement of cash flows. 
 
3.20 
Segmental information 
 
Operating segments are components that engage in business activities that may earn revenues or incur 
expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM), and 
for which discrete financial information is available. The chief operating decision-maker, who is responsible for 
allocating resources and assessing performance of the operating segments, has been identified as the Chief 
Executive Officer (CEO) of SHUAA.  
 
 
 
113     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
4. 
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY 
 
While applying the accounting policies as stated in note 3, management of the Group has made certain 
judgments, estimates and assumptions that are not readily apparent from other sources. The estimates and 
associated assumptions are based on historical experience and other factors that are considered to be 
relevant. Actual results may differ from these estimates. 
 
The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting 
estimates are recognised in the period of the revision in which the estimate is revised if the revision affects only 
that period, or in the period of the revision and future periods if the revision affects both current and future 
periods. The significant judgments and estimates made by management that have a significant risk of causing 
a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: 
 
4.1 
Critical judgement in applying Group’s accounting policies 
 
Business model assessment 
 
Classification and measurement of financial assets depends on the results of the SPPI and the business model 
test. The Group determines the business model at a level that reflects how groups of financial assets are 
managed together to achieve a particular business objective. This assessment includes judgement reflecting all 
relevant evidence including how the performance of the assets is evaluated and their performance measured, 
the risks that affect the performance of the assets and how these are managed and how the managers of the 
assets are compensated. The Group monitors financial assets measured at amortised cost or fair value through 
other comprehensive income that are derecognised prior to their maturity to understand the reason for their 
disposal and whether the reasons are consistent with the objective of the business for which the asset was held. 
Monitoring is part of the Group's continuous assessment of whether the business model for which the remaining 
financial assets are held continues to be appropriate and if it is not appropriate whether there has been a 
change in business model and so a prospective change to the classification of those assets. No such changes 
were required during the periods presented. 
 
Assessment of Significant Increase in Credit Risk 
 
The assessment of a significant increase in credit risk is done on a relative basis. To assess whether the credit 
risk on a financial asset has increased significantly since origination, the Group compares the risk of default 
occurring over the expected life of the financial asset at the reporting date to the corresponding risk of default 
at origination, using key risk indicators that are used in the Group’s existing risk management processes. 
 
The Group assessment of significant increases in credit risk is being performed at least quarterly for exposures 
based on three factors. If any of the following factors indicates that a significant increase in credit risk has 
occurred, the instrument will be moved from Stage 1 to Stage 2: 
 
● 
The Group has established thresholds for significant increases in credit risk based on movement in days 
past due (DPD) (Level of Delinquency) relative to initial recognition. 
● 
Additional qualitative reviews have been performed to assess the staging results and make 
adjustments, as necessary, to better reflect the positions which have significantly increased in risk. 
● 
IFRS 9 contains a rebuttable presumption that instruments which are 30 days past due have 
experienced a significant increase in credit risk. 
 
Carried interest 
 
The Group is entitled to receive performance fees (“carried interest”) from qualified funds which it manages. 
These fees are earned once the funds meet certain performance conditions. The Group recognises carried 
interest to the amount for which it is highly probable that a significant reversal in the amount of cumulative 
revenue recognised will not occur in future periods. 
 
Accounting acquirer 
 
One of the most important steps in a business combination is to identify the acquirer in the transaction. From 
an accounting perspective the legal acquirer may not be the accounting acquirer. In a business combination 
effected primarily by exchanging equity interests, the acquirer is usually the entity that issues its equity interests. 
However, in some business combinations, commonly called 'reverse acquisitions', the issuing entity is the 
acquiree.  
 
114     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
4. 
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued) 
 
4.1        Critical judgement in applying Group’s accounting policies (continued) 
 
Accounting acquirer (continued) 
 
As per IFRS 3, several factors determine accounting acquirer - the relative voting rights in the combined entity 
after the business combination, the existence of a large minority voting interest in the combined entity if no other 
owner or organised group of owners has a significant voting interest, the composition of the governing body of 
the combined entity, the composition of the senior management of the combined entity, the terms of the 
exchange of equity interests and relative size (measured in, for example, assets, revenues or profit) of each 
combining entity. 
 
In the merger transaction with SHUAA, the Group made an assessment of accounting acquirer as per IFRS 3 
qualitative and quantitative factors and determined that the acquiring entity for accounting purposes is the 
entity with a controlling financial interest after the combination took place, being ADFG. 
 
Consolidation - Control assessment 
 
Determining whether the Group has control over an investee is judgmental and involves a critical assessment 
of the purpose and design of an investee, nature of rights – substantive or protective in nature, assessment of 
existing and potential voting rights, whether an investor is a principal or agent when exercising its controlling 
power, relationships between investors and how they affect control and existence of power over specified assets 
only. The Group critically assesses the overall relationship between the decision-maker and other parties 
involved with the investee to determine whether the decision-maker acts as an agent. The Group continuously 
monitors if there are any changes in the composition of the Group and consequently reassesses control if facts 
and circumstances indicate that any of the elements have changed including an assessment of the variability 
of returns. 
 
Consolidation of entities in which the Group holds less than a majority of voting right (de facto control) 
 
Judgement is required to determine whether the substance of the relationship between the Group and an 
investee when the Group held less than a majority of voting rights. The Group consolidates investees that it 
controls. As it can sometimes be difficult to determine whether the Group does control an investee, management 
makes judgements about its exposure to the risks and rewards, as well as about its ability to make operational 
decisions for the investee in question. In many instances, elements are present that, considered in isolation, 
indicate control or lack of control over an investee, but when considered together make it difficult to reach a 
clear conclusion. In cases where more arguments are in place towards existence of control, the investee entity 
is consolidated. Refer note 1(ii) where management made critical judgement in assessing the relationship with 
its investees in which it holds less than a majority of voting right. 
 
Treatment as associates of entities in which the Group holds less than 20% of voting rights 
 
Determine whether the group exercises significant influence over an investee in which the Group holds less than 
20% of voting rights is judgmental and involves a critical assessment. As it can sometimes be difficult to 
determine whether the Group has significant influence over an investee, management makes judgements about 
its ability to influence the financial and operating policy decisions of the investee. In many instances, elements 
are present that, considered in isolation, indicate significant influence or lack of significant influence over an 
investee, but when considered together make it difficult to reach a clear conclusion. In cases where more 
arguments are in place towards existence of significant influence, the investee entity is recorded as an 
investment in associate. Refer note 1(iv) where management made critical judgement in assessing the 
relationship with its investees in which it holds less than 20% of voting rights. 
 
Going concern 
 
Management has made an assessment of the Group’s ability to continue as a going concern and is satisfied 
that the Group has the resources to continue in business for the foreseeable future. Furthermore, management 
is not aware of any material uncertainties that may cast significant doubt upon the Group’s ability to continue 
as a going concern. Therefore, the consolidated financial statements continue to be prepared on the going 
concern basis. 
 
 
 
115     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
4. 
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued) 
 
4.2 
Key sources of estimation uncertainty 
 
Calculation of ECL 
 
Measurement of ECL is a significant estimate that involves determination of methodology, models and data 
inputs.  
 
Macroeconomic Factors, Forward Looking Information (FLI) and Multiple Scenarios: The measurement of 
expected credit losses for each stage and the assessment of significant increases in credit risk considers 
information about past events and current conditions as well as reasonable and supportable forecasts of future 
events and economic conditions. The estimation and application of forward-looking information require 
significant judgement. 
 
PD, LGD and EAD inputs used to estimate Stage 1 and Stage 2 credit loss allowances are modelled based on 
the macroeconomic variables (or changes in macroeconomic variables) that are most closely correlated with 
credit losses in the relevant portfolio. Each macroeconomic scenario used in ECL calculation has forecasts of the 
relevant macroeconomic variables. 
 
The Group estimation of ECL in Stage 1 and Stage 2 is a discounted probability weighted estimate that considers 
a minimum of three future macroeconomic scenarios namely base case, upside and downside. 
 
The Group’s base case scenario is based on macroeconomic variable (oil price). The macro-economic variable 
(oil price) was selected on the basis of business intuition and statistical analysis performed.  Upside and 
downside scenarios are set relative to the Group’s base case scenario based on reasonably possible alternative 
macroeconomic conditions. Scenario design, including the identification of additional downside scenarios occur 
on at least an annual basis and more frequently if conditions warrant. 
 
Scenarios are probability-weighted according to the Group’s best estimate of their relative likelihood based on 
historical frequency and current trends and conditions. Probability weights are updated on a quarterly basis. 
All scenarios considered are applied to all portfolios subject to ECL with the same probabilities. Sensitivity 
assessment due to movement in each macroeconomic variable and the respective weights under the three 
scenarios is periodically assessed by the Group. In some instances, the inputs and models used for calculating 
ECLs may not always capture all characteristics of the market at the date of the financial reporting. To reflect 
this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such 
differences are significantly material. Such cases are subjected to the Group’s Governance process for oversight. 
 
Scenarios are probability-weighted according to the Group’s best estimate of their relative likelihood based on 
historical frequency and current trends and conditions. Probability weights are updated on a quarterly basis. 
All scenarios considered are applied to all portfolios subject to ECL with the same probabilities. Sensitivity 
assessment due to movement in each macroeconomic variable and the respective weights under the three 
scenarios is periodically assessed by the Group. In some instances, the inputs and models used for calculating 
ECLs may not always capture all characteristics of the market at the date of the financial reporting. To reflect 
this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such 
differences are significantly material. Such cases are subjected to the Group’s Governance process for oversight. 
 
The definition of default used in the measurement of expected credit losses and the assessment to determine 
movement between stages is consistent with the definition of default used for internal credit risk management 
purposes. IFRS 9 does not define default, but contains a rebuttable presumption that default has occurred when 
an exposure is greater than 90 days past due. 
 
Expected Life: When measuring ECL, the Group considers maximum contractual period over which it is exposed 
to credit risk. All contractual terms are considered when determining the expected life, including prepayment 
options and extension and rollover options. For certain revolving credit facilities that do not have a fixed 
maturity, the expected life is estimated based on the period over which the Group is exposed to credit risk and 
where the credit losses would not be mitigated by management actions. 
 
 
 
116     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
4. 
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (continued) 
 
4.2 
Key sources of estimation uncertainty (continued) 
 
Fair value measurement of financial assets at FVTPL and FVTOCI 
 
Fair values for the Group's financial assets at FVTPL and FVTOCI (level 3) are measured using market or income 
approaches. Considerable judgment may be required in developing estimates of fair value, particularly for 
financial instruments classified as Level 3 in the fair value hierarchy as such estimates incorporate market 
unobservable inputs that require management to use its own assumptions. While the Group's valuation 
techniques for Level 3 financial instruments remained unchanged in 2021, the development of market 
unobservable inputs included added estimation uncertainty due to the global economic and social disruption 
caused by the ongoing and developing COVID- 19 pandemic. Estimates of the amount and timing of future cash 
flows, discount rates, growth rates and other inputs incorporated into fair value measurements of Level 3 
financial instruments are inherently more difficult to determine due to the unpredictable duration and impacts 
of the COVID-19 pandemic. 
 
The uncertainty in those assumptions have been incorporated into the Group's valuations of Level 3 financial 
instruments primarily through updated cash flows and discount rate, as applicable. See note 24.1 for details of 
the Group's Level 3 financial instruments. Additional volatility in the fair values of Level 3 financial instruments 
may arise in future periods if actual results differ materially from the company's estimates. If no market data is 
available, the Group may value its investments using its own models, which are usually based on valuation 
methods and techniques generally recognised as standard within the industry, such as the Discounted Cash 
Flow (DCF) and Net Asset Value (NAV) method, in which case the Group would exercise judgement and estimates 
on the quantity and quality of the cash flows and fair values, respectively, of the underlying investment.   
 
In performing the fair value measurement, the Group selects inputs that are consistent with the characteristics 
of the financial asset that market participants would take into account in a transaction for that asset. In some 
cases, those characteristics result in the application of an adjustment, such as a control premium or non-
controlling interest discount. The Group incorporates a premium or discount only when it is consistent with the 
unit of account for the investment. 
 
Impairment assessment on investment using equity accounting 
 
The Group assesses the impairment of investments accounted for using the equity method whenever triggering 
events or changes in circumstances indicate that an investment may be impaired and carrying value may not 
be recoverable. The Group measures the impairment based on a projected future cash flow of the investees, 
including the underlying assumptions provided by such investees’ internal management team. The Group also 
takes into account market conditions and the relevant industry trends to ensure the reasonableness of such 
assumptions. 
 
Impairment of goodwill 
 
On an annual basis, the Group determines whether goodwill is impaired. This requires an estimation of the 
recoverable amount using value in use of the cash generating units to which the goodwill is allocated. 
Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the 
cash generating units taking into account all conditions existing as at the end of reporting period and also to 
choose a suitable discount rate in order to calculate the present value of those cash flows.  
 
Assets and liabilities held for sale 
 
With regard to assets held for sale, it must be determined if they can be sold in their current condition and if the 
sale of such is highly probable. If both conditions apply, the assets and any related liabilities must be reported 
and measured as “Assets held for sale” or “Liabilities held for sale”, respectively. 
 
 
 
117     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
5 
SEGMENTAL INFORMATION 
 
For management purpose the Group is organized into three operating segments, all of which are based on 
business units: 
 
Asset Management manage real estate funds and projects, investment portfolios and funds in the regional 
equities, fixed income and credit markets. It also provides investment solutions to clients with a focus on 
alternative investment strategies.  
 
Investment banking provides corporate finance advisory, transaction services, private placement, public 
offerings of equity and debt securities and structured products. It also creates market liquidity on OTC fixed 
income products. 
 
Corporate manages principal investments, non-core assets, corporate developments, treasury and other shared 
services related to the Group. 
 
 
118     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
5. 
SEGMENTAL INFORMATION (continued) 
 
 
31 December 2021 
 
Asset 
Management 
Investment 
Banking 
Corporate 
Total 
 
 
Net fee and commission income 
210,753 
4,478 
49,476 
264,707 
Advisory income 
- 
16,401 
(3,300) 
13,101 
Net interest income 
- 
- 
7,198 
7,198 
Trading income 
- 
8,429 
(2,514) 
5,915 
Carried interest income 
- 
- 
- 
- 
Other operating income 
181 
- 
103,380 
103,561 
 
——— 
——— 
——— 
———— 
Total revenues 
210,934 
29,308 
154,240 
394,482 
 
——— 
——— 
——— 
———— 
 
 
 
 
 
Staff costs 
(77,322) 
(10,134) 
(78,529) 
(165,985) 
General and administrative expenses 
(19,552) 
(7,013) 
(49,381) 
(75,946) 
Depreciation and amortization 
(31,751) 
(6,568) 
(7,695) 
(46,014) 
Provision for impairment losses on financial instruments 
- 
- 
(17,780) 
(17,780) 
Other operating expenses 
(5,698) 
(347) 
(3,575) 
(9,620) 
 
——— 
——— 
——— 
———— 
Total expenses  
(134,323) 
(24,062) 
(156,960) 
(315,345) 
 
——— 
——— 
——— 
———— 
 
 
 
 
 
Profit/(loss) before other income and finance cost 
76,611 
5,246 
(2,720) 
79,137 
 
Fair value (losses) /gains from investments 
- 
(684) 
655,606 
654,922 
Gain from derivative financial liability 
- 
- 
2,590 
2,590 
Share of loss from investment in associates 
- 
- 
(157,062) 
(157,062) 
Finance cost 
(6,201) 
(2,262) 
(138,899) 
(147,362) 
Finance cost relating to unit holders 
- 
- 
(407,274) 
(407,274) 
Other income 
5,670 
1,847 
30,216 
37,733 
 
——— 
——— 
———— 
———— 
Profit/(loss) for the year from continuing operations 
76,080 
4,147 
(17,543) 
62,684 
 
 
 
 
 
Profit for the year from discontinued operations 
- 
- 
8,250 
8,250 
 
 
 
 
 
Profit for the year attributable to NCI 
(5,035) 
- 
(41,661) 
(46,696) 
 
——— 
——— 
———— 
———— 
Profit/(loss) for the year attributable to Owners 
71,045 
4,147 
(50,954) 
24,238 
 
════ 
════ 
════ 
════ 
Revenue generated from external customer (fee & 
commission) 
210,753 
4,478 
49,476 
264,707 
Revenue generated from within the group (fee & 
commission) 
37,281 
- 
- 
37,281 
 
——— 
——— 
———— 
———— 
 
248,034 
4,478 
49,476 
301,988 
 
═════ 
════ 
═════ 
═════ 
 
 
 
 
 
 
 
 
31 December 2021 
 
Asset 
Management 
Investment 
Banking 
Corporate 
Total 
 
 
 
 
 
 
Assets 
1,096,045 
356,152 
4,315,689 
5,767,886 
 
══════ 
══════ 
══════ 
══════ 
 
 
 
 
 
Liabilities 
208,715 
100,227 
3,612,882 
3,921,824 
 
══════ 
══════ 
══════ 
══════ 
 
The results of the discontinued operations and assets/liabilities pertaining to the disposal group classified as 
held for sale are included in the ‘Corporate’ operating segment. 
 
The accounting policies of each of the reportable segments are consistent with those of the Group. 
 
 
119     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
5. 
SEGMENTAL INFORMATION (continued) 
 
 
31 December 2020 
 
Asset 
Management 
Investment 
Banking 
Corporate 
Total 
 
 
 
 
 
 
Net fee and commission income 
116,678 
5,391 
 97,042 
 219,111 
Advisory income 
13,184 
15,972 
385 
29,541 
Net interest income 
- 
- 
14,880 
14,880 
Trading income 
378 
4,174 
(457) 
4,095 
Carried interest income 
- 
- 
- 
- 
Other operating income 
18,137 
- 
252,753 
270,890 
 
——— 
——— 
——— 
———— 
Total revenues 
148,377 
25,537 
 364,603 
538,517 
 
——— 
——— 
——— 
———— 
 
 
 
 
 
Staff costs 
(64,030) 
(13,811) 
 (62,984) 
 (140,825) 
Employee carried interest 
- 
- 
- 
- 
General and administrative expenses 
(28,651) 
(7,135) 
 (36,581) 
 (72,367) 
Depreciation and amortization 
(31,284) 
(7,945) 
(12,911) 
(52,140) 
Provision for impairment losses on financial instruments 
 (2,621) 
 269 
 (2,473) 
 (4,825) 
Other operating expenses 
 919 
686 
 (28,377) 
 (26,772) 
 
——— 
——— 
——— 
———— 
Total expenses  
(125,667)  
 (27,936) 
 (143,326) 
 (296,929) 
 
——— 
——— 
——— 
———— 
 
 
 
 
 
Profit/(loss) before other income and finance cost 
 22,710 
 (2,399) 
221,277 
241,588 
Fair value losses from investments 
 474 
(1,107) 
 (254,565) 
 (255,198) 
Loss from derivative financial liability 
- 
- 
(3,505) 
(3,505) 
Share of profit from investment in associates 
- 
- 
 80,182 
 80,182 
Finance cost 
(4,996)  
 (2,120) 
 (164,966) 
 (172,082) 
Finance credit relating to unit holders 
- 
- 
114,124 
114,124 
Other income 
32,343 
1,909 
 118,717 
152,969 
 
——— 
——— 
———— 
———— 
Profit/(loss) for the year from continuing operations 
50,531 
 (3,717) 
 111,264 
 158,078 
 
 
 
 
 
Loss for the year from discontinued operations 
- 
- 
(2,728) 
(2,728) 
 
 
 
 
 
Profit for the year attributable to NCI 
(482) 
- 
(29,605) 
(30,087) 
 
——— 
——— 
———— 
———— 
Profit/(loss) for the year attributable to Owners 
 50,049 
 (3,717) 
 78,931 
 125,263 
 
════ 
════ 
════ 
════ 
Revenue generated from external customer (fee & 
commission) 
108,875 
5,391 
97,042 
211,308 
Revenue generated from within the group (fee & 
commission) 
7,803 
- 
- 
7,803 
 
——— 
——— 
———— 
———— 
 
116,678 
5,391 
97,042 
219,111 
 
════ 
════ 
════ 
════ 
 
 
 
 
 
 
 
31 December 2020 
 
Asset 
Management 
Investmen
t Banking 
Corporate 
Total 
 
 
 
 
 
 
Assets 
 1,158,050 
 361,791 
 4,528,471 
 6,048,312 
 
═════ 
════ 
═════ 
═════ 
 
 
 
 
 
Liabilities 
 218,579 
 126,009 
 3,677,547 
 4,022,135 
 
════ 
════ 
═════ 
═════ 
 
 
 
120     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
6. 
OPERATING INCOME 
 
 
31 December 
2021 
31 December  
2020 
 
 
 
Fees and commission income 
289,922 
231,848 
Advisory income 
13,101 
29,541 
Trading income 
5,915 
4,095 
Other operating income (Note 6.1) 
103,561 
270,890 
 
——— 
——— 
Revenue 
412,499 
536,374 
 
——— 
——— 
 
 
 
Fee and commission expense 
(25,215) 
(12,737) 
 
——— 
——— 
Operating income 
387,284 
523,637 
 
═════ 
═════ 
 
6.1 
OTHER OPERATING INCOME 
 
 
31 December 
2021 
31 December  
2020 
 
 
 
Other income 
6,292 
12,693 
Board representation fees 
1,225 
7,258 
Bargain purchase gain 
- 
182,653 
Dividend income 
96,044 
68,286 
 
——— 
——— 
 
103,561 
270,890 
 
════ 
════ 
 
Other income includes income related to operating activities of certain subsidiaries that are other than the 
primary activities of ADFG and SHUAA. 
 
7. 
GENERAL AND ADMINISTRATIVE EXPENSES 
 
 
31 December  
2021 
31 December  
2020 
 
 
 
Professional fees 
(24,012) 
(32,508) 
Administration, technology and communication 
(21,678) 
(19,035) 
Office costs 
(9,229) 
(6,256) 
Corporate marketing and branding costs 
(8,720) 
(7,117) 
Business travel expenses 
(768) 
(433) 
Others 
(11,539) 
(7,018) 
 
——— 
——— 
 
(75,946) 
 (72,367) 
 
═════ 
═════ 
There is no payment for social contribution in 2021 and 2020. 
 
 
121     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
8. 
PROVISION FOR IMPAIRMENT LOSSES ON FINANCIAL INSTRUMENTS 
 
 
 
31 December 
 2021 
31 December 
2020 
 
 
 
Charge on Loans, advances and finance leases  
(10,935) 
(7,271) 
(Charge)/release of provision of impairment for doubtful receivables 
and other assets  
(6,845) 
2,446 
 
——— 
——— 
 
(17,780) 
 (4,825) 
 
═════ 
═════ 
 
9. 
OTHER OPERATING EXPENSES 
 
 
31 December  
2021 
31 December  
2020 
 
 
 
Directors fee 
(6,040) 
(3,324) 
Net foreign exchange gain/(loss) 
5,900 
(6,270) 
Others  
(9,480) 
(17,178) 
 
——— 
——— 
 
(9,620) 
 (26,772) 
 
═════ 
══════ 
 
10. OTHER INCOME/(EXPENSES) 
 
 
31 December  
2021 
31 December  
2020 
 
 
 
One-time transaction claw back (Note 10.1) 
- 
112,882 
Reversal of rebate payable 
- 
15,509 
Government grant income 
8,585 
- 
Borrowing deferment income 
- 
4,401 
Finance lease modification charge 
(4,320) 
(15,328) 
Gain on sale of financial asset carried at amortised cost 
- 
16,724 
Others  
33,468 
18,781 
 
——— 
——— 
 
37,733 
152,969 
 
═════ 
══════ 
 
10.1  
This relates to a one-time payment associated with a claw back from a previous transaction the Group 
executed. 
 
11. CASH AND DEPOSITS WITH BANKS  
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Cash on hand 
106 
47 
Balances held with banks 
460,542 
416,928 
Cash and deposits with banks 
——— 
——— 
 
460,648 
416,975 
Less: Restricted deposits 
(7,128) 
(39,709) 
 
——— 
——— 
Cash and cash equivalents 
453,520 
377,266 
 
═════ 
══════ 
 
The rate of interest on the deposits held during the year ended 31 December 2021 ranged from 1.4% to 6.25% (31 
December 2020: 1.4% to 6.25%) per annum. 
Cash and deposits with banks include deposits of 7,128 (31 December 2020: 39,709) with banks, which are held as 
collateral against the Group’s banking facilities. For the purposes of consolidated statement of cash flows, cash 
and cash equivalents are stated net of these deposits. 
 
 
122     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
12. RECEIVABLES AND OTHER DEBIT BALANCES 
 
 
31 December 
31 December 
 
2021 
2020 
 
 
 
Trade receivables – net of loss allowance (Note 12.1) 
66,310 
46,336 
Receivables from managed funds 
24,131 
61,220 
Receivable against unsettled trades 
- 
26,479 
Advances and deposits 
5,155 
4,995 
Prepayments 
9,850 
12,014 
Carried interest 
- 
2,256 
Accrued income 
64,737 
42,242 
Others  
180,857 
18,750 
 
——— 
——— 
 
351,040 
214,292 
 
════ 
════ 
Trade receivables and managed funds – net of loss allowance 
 
 
Trade receivables and managed funds 
98,148 
127,481 
Loss allowance 
(7,707) 
(19,925) 
 
——— 
——— 
 
90,441 
107,556 
 
════ 
════ 
Movement in loss allowance: 
 
 
Opening balance 
(19,925) 
(22,371) 
(Charge)/reversal for the year 
(6,845) 
2,446 
Written off 
19,063 
- 
 
——— 
——— 
Closing balance 
(7,707) 
(19,925) 
 
════ 
════ 
 
 
 
12.1  
Included in trade receivables is an amount of 14,363 (31 December 2020: 15,860) due from related 
parties (Note 23). 
 
 
 
13. LOANS, ADVANCES AND FINANCE LEASES 
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Loans and advances - net of provision for impairment (a) 
32,923 
88,783 
Finance leases – net of provision of impairment (b) 
167,018 
 183,303 
Margin lending - net of provision for impairment (c) 
36,325 
74,146 
 
——— 
——— 
 
236,266 
346,232 
 
════ 
════ 
 
 
123     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
13 
LOANS, ADVANCES AND FINANCE LEASES (continued) 
 
(a) 
Loans and advances 
 
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Total loans and advances 
44,155 
88,783 
Provision for impairment 
 (11,232) 
- 
 
——— 
——— 
 
32,923 
 88,783 
 
════ 
════ 
Movement in cumulative provision for impairment: 
 
 
Opening balance 
- 
(4,323) 
Charge for the year 
(11,232) 
(642) 
Reversal for the year 
- 
4,965 
 
——— 
——— 
Closing balance 
(11,232) 
- 
 
════ 
═════ 
 
As at 31 December 2021, the underlying collateral for loans and advances were valued at 39,911 (31 December 
2020:111,158). Provisions are made for the uncovered portion of the impaired loans and advances. 
 
(b) 
Finance leases 
 
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Current finance lease receivables (Note 13 (b).1) 
95,209 
86,410 
Non-current finance lease receivables (Note 13 (b).1) 
82,944 
108,826  
Provision for impairment 
(11,135) 
 (11,933) 
 
——— 
——— 
 
167,018 
183,303 
 
══════ 
════ 
Movement in provision for impairment: 
 
 
Opening balance 
(11,933) 
(765) 
Charge for the year 
(6,728) 
(11,168) 
Reversals during the year 
                   7,526 
- 
 
——— 
——— 
Closing balance 
(11,135) 
(11,933) 
 
══════ 
════ 
 
13 (b).1  Included in finance lease are investment in Islamic financing (Ijara) by a subsidiary amounting to 157,873 
(31 December 2020: 171,210). 
 
Leasing arrangements – the Group as lessor 
 
The Group entered into finance lease arrangements to lease out certain of its equipment to its customers. The 
average term of finance leases entered into is between 2 and 4 years. Furthermore, the Group has sub-let a 
portion of its leased office premises to third parties. 
 
 
 
124     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
13. LOANS, ADVANCES AND FINANCE LEASES (continued) 
 
(b) 
Finance leases (continued) 
 
 
Minimum 
 lease payments 
Present value of minimum 
 lease payments 
 
31 December 
2021 
31 December 
2020 
31 December 
2021 
31 December 
2020 
 
 
 
 
 
Not later than one year  
112,115 
106,282 
95,209 
86,410 
Later than one year and not later than five years 
95,535 
126,716 
82,944 
108,826 
 
——— 
———— 
——— 
———— 
 
207,650 
232,998 
178,153 
195,236 
Less: unearned finance income 
(29,497) 
(37,762) 
- 
- 
 
——— 
———— 
——— 
———— 
Present value of minimum lease payments receivab
178,153 
195,236 
178,153 
195,236 
Allowances for uncollectible lease payments 
(11,135) 
(11,933) 
(11,135) 
 (11,933) 
 
——— 
———— 
——— 
———— 
 
167,018 
 183,303 
167,018 
 183,303 
 
══════ 
══════ 
══════ 
══════ 
 
Unguaranteed residual values of assets leased under finance leases at the end of the reporting period are 
estimated at nil. The interest rate implicit in the leases is fixed at the contract date for the entire lease term.  
 
As at 31 December 2021, the underlying collateral for finance leases was valued at 158,471 (31 December 2020: 
250,011). Provisions are made for the impaired portion of the lease, net of collateral 
 
(c) Margin lending 
 
The Group extends margins to clients for the purpose of trading in quoted securities. These advances are short 
term in nature and are secured by the underlying securities held in custody by the Group.  
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Total margin lending 
37,455 
74,774 
Cumulative provision for impairment 
(1,130) 
(628) 
 
——— 
——— 
 
36,325 
74,146 
 
════ 
════ 
Movement in cumulative provision for impairment: 
 
 
Opening balance 
(628) 
(202)  
Charge for the year 
(502) 
(426) 
 
——— 
——— 
Closing balance 
(1,130) 
(628) 
 
════ 
════ 
 
As at 31 December 2021, the underlying securities were valued at 105,904 (31 December 2020:422,971). Provisions 
are made for the impaired portion of margins.  
 
Some of the underlying securities in an amount of Nil (31 December 2020: 69,915) are pledged under repurchase 
agreements with financial institutions.  
 
 
 
125     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
13. LOANS, ADVANCES AND FINANCE LEASES (continued) 
 
(c) 
Margin lending (continued) 
 
The effect of collateral on assets is as follows : 
 
31 December 2021 
 
Over collateralized  
Under collateralized 
 
Carrying value 
of the assets 
Value of 
collateral 
Carrying 
value of the 
assets 
Value of 
collateral 
 
 
 
 
 
Loans and advances  
1,197 
39,911 
- 
- 
Finance leases 
77,326 
122,988 
80,547 
35,483 
Margin lending 
7,184 
105,904 
29,141 
- 
 
———— 
———— 
———— 
———— 
 
85,707 
268,803 
109,688 
35,483 
 
══════ 
══════ 
══════ 
══════ 
 
31 December 2020 
 
Over collateralized  
Under collateralized 
 
Carrying value 
of the assets 
Value of 
collateral 
Carrying 
value of the 
assets 
Value of 
collateral 
 
 
 
 
 
Loans and advances 
54,665 
111,158 
34,118 
- 
Finance leases 
117,037 
203,137 
66,266 
46,874 
Margin lending 
74,146 
422,971 
- 
- 
 
———— 
———— 
———— 
———— 
 
245,848 
737,266 
100,384 
46,874 
 
══════ 
══════ 
══════ 
══════ 
 
14. INVESTMENTS IN ASSOCIATES  
  
The table below shows the movement in associates during the year: 
 
 
31 December 2021 
 
QIL 
SHUAA 
Hospitality 
Fund I L.P. 
SHUAA Saudi 
Hospitality 
Fund I 
Mirfa Power 
Holding 
Company 
PJSC 
ADCORP 
Limited 
Others 
Total 
Movement 
 
 
 
 
 
 
 
As at 1 January 2021 
379,780 
- 
- 
- 
39,312 
15,220 
434,312 
Additions 
- 
- 
- 
- 
17,857 
- 
17,857 
Associate arising from 
loss of control 
- 
- 
- 
- 
- 
50,275 
50,275 
Share of profit of 
associates 
234,366 
- 
- 
- 
13,684 
4,330 
252,380 
Impairments 
(403,753) 
- 
- 
- 
(5,689) 
- 
(409,442) 
Classified as fair value 
through P&L 
- 
- 
- 
- 
 
(12,991) 
(12,991) 
Dividends and 
distributions 
- 
- 
- 
- 
(28,559) 
- 
(28,559) 
Reclassified from Held for 
sale 
- 
 
 36,844  
  
13,360  
- 
- 
- 
50,204 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
As at 31 December 2021 
210,393 
36,844 
13,360 
- 
36,605 
56,834 
354,036 
 
═════ 
═════ 
═════ 
═════ 
═════ 
═════ 
═════ 
 
 
 
 
 
 
 
 
 
 
 
126     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
14. INVESTMENTS IN ASSOCIATES (continued) 
 
The table below shows the movement in associates during 2020 
 
 
31 December 2020 
 
QIL 
SHUAA 
Hospitality 
Fund I L.P. 
SHUAA Saudi 
Hospitality 
Fund I 
Mirfa Power 
Holding 
Company 
PJSC 
ADCORP 
Limited 
Others 
Total 
Movement 
 
 
 
 
 
 
 
As at 1 January 2020 
284,963 
51,033 
19,936 
237,160 
78,019 
22,539 
693,650 
Additions 
33,595 
- 
- 
- 
- 
- 
33,595 
Share of profit/(loss) of 
associates 
 
61,222 
 
 (8,862) 
 
(2,121) 
 
75,654 
 
(8,392) 
 
(1,133) 
 
116,368 
Share of other 
comprehensive (loss) of 
associates 
 
- 
 
- 
 
- 
 
(47,569) 
 
- 
 
- 
 
(47,569) 
Impairments 
- 
(21,092) 
(8,908) 
- 
- 
(6,186) 
(36,186) 
Dividends and 
distributions 
- 
- 
- 
(86,636) 
(30,315) 
- 
(116,951) 
Held for sale 
- 
 (21,079) 
(8,907) 
(178,609) 
- 
- 
(208,595) 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
As at 31 December 2020 
379,780 
- 
- 
- 
39,312 
15,220 
434,312 
 
═════ 
═════ 
═════ 
═════ 
═════ 
═════ 
══════ 
 
 
 
 
 
 
 
 
 
The table below provides summarised financial information for those associates that are material to the Group. 
The information disclosed reflects the amounts presented in the financial statements of the relevant associates 
and not the Group’s share of those amounts. 
 
 
31 December 2021 
 
 
QIL 
SHUAA 
Hospitality 
Fund I L.P. 
SHUAA Saudi 
Hospitality  
Fund I 
Mirfa Power 
Holding 
Company PJSC 
 
ADCORP 
Limited 
 
Others 
 
Total 
Summarised statement 
of financial position 
 
 
 
 
 
 
 
Assets 
 
 
 
 
 
 
 
- Current 
260,034 
294 
265,662 
- 
421,923 
54,153 
1,002,066 
- Non-current 
1,783,278 
137,073 
40,379 
- 
- 
232,977 
2,193,707 
Total assets 
2,043,312 
137,367 
306,041 
- 
421,923 
287,130 
3,195,773 
Liabilities 
 
 
 
 
 
 
 
- Current 
82,551 
779 
125,656 
- 
10,757 
66,625 
286,368 
- Non-current 
228,827 
- 
- 
- 
- 
512 
229,339 
Total liabilities 
311,378 
779 
125,656 
- 
10,757 
67,137 
515,707 
 
 
 
 
 
 
 
 
Net Assets 
1,731,934 
136,588 
140,006 
- 
411,166 
219,993 
2,639,687 
 
 
 
 
 
 
 
 
Summarised statement 
of comprehensive 
income 
 
 
 
 
 
 
 
Revenue 
819,511 
2,185 
34,498 
- 
74,146 
120,129 
1,050,469 
 
═════ 
════ 
════ 
════ 
════ 
════ 
════ 
 
 
 
 
 
 
 
 
Profit for the year 
659,572 
2,185 
9,829 
- 
73,840 
38,677 
784,103 
Other comprehensive 
loss for the year 
- 
- 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Total comprehensive 
income for the year 
659,572 
2,185 
9,829 
- 
73,840 
38,677 
784,103 
 
══════ 
══════ 
══════ 
══════ 
═════ 
══════ 
══════ 
 
 
127     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
14. INVESTMENTS IN ASSOCIATES (continued) 
 
 
31 December 2020 
 
 
QIL 
SHUAA 
Hospitality 
Fund I L.P. 
SHUAA Saudi 
Hospitality  
Fund I 
Mirfa Power 
Holding 
Company PJSC 
 
ADCORP 
Limited 
 
Others 
 
Total 
Summarised statement 
of financial position 
 
 
 
 
 
 
 
Assets 
 
 
 
 
 
 
 
- Current 
1,197,500 
294 
16,378 
516,654 
311,224 
7,499,124 
9,541,174 
- Non-current 
118,012 
129,212 
306,381 
4,864,983 
- 
2,432,266 
7,850,854 
Total assets 
1,315,512 
129,506 
322,759 
5,381,637 
311,224 
9,931,390 
17,392,028 
Liabilities 
 
 
 
 
 
 
 
- Current 
169,722 
782 
18,981 
662,401 
6,534 
7,553,038 
8,411,458 
- Non-current 
4,875 
- 
120,087 
4,415,073 
 
990,779 
5,530,814 
Total liabilities 
174,597 
782 
139,068 
5,077,474 
6,534 
8,543,817 
13,942,272 
 
 
 
 
 
 
 
 
Net Assets 
1,140,915 
128,724 
183,691 
304,163 
304,690 
1,387,573 
3,449,756 
 
 
 
 
 
 
 
 
Summarised statement 
of comprehensive 
income 
 
 
 
 
 
 
 
Revenue 
5,307 
(65,227) 
(56,783) 
786,279 
(7,323) 
471,446 
1,133,699 
 
═════ 
════ 
════ 
════ 
════ 
════ 
════ 
 
 
 
 
 
 
 
 
Profit/(loss) for the year 
164,925 
(65,227) 
(92,982) 
297,635 
(10,878) 
(23,951) 
269,522 
Other comprehensive 
loss for the year 
 
- 
 
- 
 
- 
 
(237,847) 
 
- 
 
- 
 
(237,847) 
 
——— 
——— 
——— 
——— 
 
——— 
——— 
Total comprehensive 
income/(loss) for the 
year 
 
164,925 
 
(65,227) 
 
(92,982) 
 
59,788 
 
(10,878) 
 
(23,951) 
 
31,675 
 
═════ 
════ 
════ 
════ 
════ 
════ 
════ 
 
128     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
15. PROPERTY AND EQUIPMENT 
 
 
31 December 2021 
      
 
Leasehold 
Improvements 
Office 
equipment 
Motor 
vehicles 
Furniture 
and fixture 
Land & 
buildings 
Artworks 
and 
painting 
Right-of-
use assets 
Total 
 
 
 
 
 
 
 
 
   
Cost 
 
 
 
 
 
 
 
 
Balance at beginning of the year 
20,900 
8,277 
857 
5,841 
2,551 
1,357 
47,170 
86,953 
Additions 
1,070 
4,112 
487 
367 
- 
- 
16,019 
22,055 
Transfers  
(428) 
3,484 
- 
(3,056) 
- 
 
- 
- 
Disposals 
(7,222) 
(167) 
(286) 
(69) 
- 
(1) 
(8,415) 
(16,160) 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Balance at end of the year 
14,320 
15,706 
1,058 
3,083 
2,551 
1,356 
54,774 
92,848 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
 
 
 
 
 
 
 
 
 
Accumulated depreciation 
 
 
 
 
 
 
 
 
Balance at beginning of the year 
7,828 
7,856 
505 
4,914 
224 
- 
22,864 
44,191 
Charge for the year 
3,815 
1,808 
219 
569 
77 
3 
15,625 
22,116 
Transfers 
(363) 
4,570 
- 
(4,207) 
- 
- 
- 
- 
Disposals 
(3,010) 
(156) 
(141) 
(16) 
- 
- 
(4,498) 
(7,821) 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Balance at end of the year 
8,270 
14,079 
583 
1,260 
301 
3 
33,991 
58,486 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Net book value 
 
 
 
 
 
 
 
 
Balance at end of the year 
6,050 
1,627 
475 
1,823 
2,250 
1,353 
20,783 
34,362 
 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
 
 
129     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
15. PROPERTY AND EQUIPMENT (continued) 
 
 
31 December 2020 
 
 
Leasehold  
Improvements 
Office 
equipment 
Motor 
vehicles 
Furniture 
and fixture 
Land & 
buildings 
Artworks 
and 
paintings 
Right-of-use 
assets 
Total 
Cost 
 
 
 
 
 
 
 
 
Balance at beginning of the year 
20,014 
6,435 
771 
5,841 
10,380 
1,357 
48,071 
92,869 
Additions 
1,480 
2,387 
190 
- 
- 
- 
1,377 
5,434 
Transfers  
- 
- 
- 
- 
- 
- 
(154) 
(154) 
Disposals 
(318) 
(346) 
(1) 
- 
- 
- 
 (2,124) 
(2,789) 
Transfer to held for sale 
(280) 
(199) 
(103) 
- 
(4,088) 
- 
- 
(4,670) 
Impairment 
- 
- 
- 
- 
(3,741) 
- 
- 
(3,741) 
Exchange rate translation 
4 
- 
- 
- 
- 
- 
- 
4 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Balance at end of the year 
20,900 
8,277 
857 
5,841 
2,551 
1,357 
47,170 
86,953 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
 
 
 
 
 
 
 
 
 
Accumulated depreciation 
 
 
 
 
 
 
 
 
Balance at beginning of the year 
2,243 
3,394 
287 
2,853 
193 
- 
10,207 
19,177 
Charge for the year 
5,980 
4,666 
214 
2,061 
31 
- 
13,952 
26,904 
Disposals 
(395) 
(204) 
4 
- 
- 
- 
(1,295) 
(1,890) 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Balance at end of the year 
7,828 
7,856 
505 
4,914 
224 
- 
22,864 
44,191 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
Net book value 
 
 
 
     
     
 
     
    
Balance at end of the year 
13,072 
421 
352 
927 
2,327 
1,357 
24,306 
42,762 
 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
130     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
15. PROPERTY AND EQUIPMENT (continued) 
 
15.1  
The recognised right-of-use assets relate to the following types of assets: 
 
 
31 December 
2021 
31 December 
2020 
 
 
 
 
 
 
Buildings (*)  
54,776 
47,170 
Office equipment 
- 
- 
 
——— 
———— 
Total right-of-use assets at cost (Note 15) 
54,776 
47,170 
 
══════ 
══════ 
 
(*)  
The Group has sub-let a portion of the leased property to third parties which have been adjusted 
against the recognised right-of-use assets (Note 15). 
 
15.2  
The depreciation charge for right-of-use assets pertains mainly to office premises (Note 15). 
 
 
31 December 
2021 
31 December  
2020 
 
 
 
Buildings  
15,625 
13,952 
Office equipment 
- 
- 
 
———— 
———— 
 
15,625 
13,952 
 
══════ 
══════ 
 
16. GOODWILL AND OTHER INTANGIBLE ASSETS 
 
 
31 December 2021 
 
Goodwill 
Trademark
/ Brand 
Customer 
Relationships 
Trade 
Licenses 
Total 
Cost 
 
 
 
 
 
Balance at beginning of the year 
1,030,562 
15,573 
215,249 
18,807 
  1,280,191 
Impact of foreign currency 
translation 
(5,886) 
- 
- 
- 
(5,886) 
 
———— 
———— 
———— 
———— 
———— 
Balance at end of the year 
1,024,676 
15,573 
215,249 
18,807 
1,274,305 
 
———— 
———— 
———— 
———— 
———— 
 
 
 
 
 
 
Accumulated amortization 
 
 
 
 
 
Balance at beginning of the year 
- 
1,161 
37,226 
7 
38,394 
Charge for the year 
- 
903 
22,994 
- 
23,897 
 
———— 
———— 
———— 
———— 
———— 
Balance at end of the year 
- 
2,064 
60,220 
7 
62,291 
 
———— 
———— 
———— 
———— 
———— 
 
 
 
 
 
 
Net book value 
 
 
 
 
 
Net book value as at 31 
December 2021 
1,024,676 
13,509 
155,029 
18,800 
1,212,014 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
 
 
131     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
16. GOODWILL AND OTHER INTANGIBLE ASSETS (continued) 
 
 
31 December 2020 
 
Goodwill 
Trademark/ 
Brand 
Customer 
Relationships 
Trade 
Licenses 
Total 
Cost 
 
 
 
 
 
Balance at beginning of the year 
1,016,217 
16,760 
215,500 
23,277 
1,271,754 
Impairment 
(3,876) 
(1,187) 
- 
(4,470) 
(9,533) 
Impact of foreign currency 
translation 
18,221 
- 
- 
- 
18,221 
Disposals 
- 
- 
(251) 
- 
(251) 
 
———— 
———— 
———— 
———— 
———— 
Balance at end of the year 
1,030,562 
15,573 
215,249 
18,807 
1,280,191 
 
———— 
———— 
———— 
———— 
———— 
 
 
 
 
 
 
Accumulated amortization 
 
 
 
 
 
Balance at beginning of the year 
- 
257 
12,910 
7 
13,174 
Charge for the year 
- 
904 
24,332 
- 
25,236 
Disposals 
- 
- 
(16) 
- 
(16) 
 
———— 
———— 
———— 
———— 
———— 
Balance at end of the year 
- 
1,161 
37,226 
7 
38,394 
 
———— 
———— 
———— 
———— 
———— 
 
 
 
 
 
 
Net book value 
 
 
 
 
 
Net book value as at 31 
December 2020 
1,030,562 
14,412 
178,023 
18,800 
1,241,797 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
This includes goodwill and other intangibles arisen upon cessation of investment entity and acquisition of 
subsidiaries as part of the business combination mainly on account of expected synergies, efficient business 
management, high standards of policies, compliances with relevant regulatory framework and integrity, 
experience and other strength of the workforce and management. Accordingly, the goodwill recognized 
represents the excess of the fair value of the net assets acquired over the proportionate share acquired in 
identifiable net assets.  
 
The Group performs impairment tests on Goodwill and Trade Licenses annually. Management assessed the 
recoverable amount for the Cash-Generating Units (“CGUs”) using value in use (“VIU”). VIU calculations were 
determined using cash flow projections from financial budgets approved by the Group’s senior management 
covering a one to four-year period. The discount rate applied to cash flow projections represent the cost of 
capital adjusted for an appropriate risk premium for these cash-generating units. The key assumptions used in 
estimating the recoverable amounts of cash-generating units were assessed to ensure reasonableness of the 
VIU and resulting adjustment, if any, is recorded in the consolidated income statement. The Group has also 
performed a sensitivity analysis by varying key inputs by a reasonable margin. The Group concluded there were 
no impairments of its goodwill and intangible assets in 2021 (31 December 2020: nil). 
         
 
 
 
132     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
16. GOODWILL AND OTHER INTANGIBLE ASSETS (continued) 
 
The carrying amount of Goodwill, Trade licenses and Customer relationships as at 31 December 2021 allocated 
to each CGU along with the key inputs used for VIU calculations and sensitivity analysis are summarized as 
follows: 
 
 
31 December 2021 
CGU 
Goodwill 
Customer 
relationship 
Trademarks
/Brand 
Trade 
licenses 
Discount 
rate 
Growth 
rate 
Change 
in 
Discount 
rate of 
+1% 
Change 
in 
Growth 
rate of    
-1% 
Asset 
Management – 
Astrea 
254,607 
99,111 
- 
- 
4.5% 
1.5% 
(171,567) 
(157,415) 
Asset 
Management – 
Northacre 
242,814 
- 
3,077 
- 
4.5% 
- 
(53,462) 
- 
Asset 
Management – 
Real Estate 
197,470 
24,283 
4,378 
5,300 
15.0% 
2.0% 
(40,147) 
(28,786) 
Investment 
Banking 
162,215 
- 
2,347 
4,000 
16.0% 
2.0% 
(29,769) 
(20,873) 
NCM 
81,155 
19,316 
2,181 
9,200 
15.5% 
2.5% 
(15,777) 
(11,060) 
Fixed Income 
Trading 
58,244 
12,318 
1,526 
- 
15.5% 
2.0% 
(14,883) 
(10,560) 
Investment 
Solutions 
28,171 
- 
- 
300 
15.5% 
2.0% 
(37,085) 
(26,633) 
 
———— 
———— 
——— 
—— 
 
 
 
 
 
1,024,676 
155,028 
13,509 
18,800 
 
 
 
 
 
══════ 
══════ 
════ 
═══ 
 
 
 
 
 
 
31 December 2020 
CGU 
 
Goodwill 
 
Customer 
relationship 
 
Trademarks
/Brand 
 
Trade 
licenses 
Discount 
rate 
Growth 
rate 
+1% 
change 
in 
Discoun
t rate 
-1% 
change 
in 
Growth 
rate 
 
 
 
 
 
 
 
 
 
Asset 
Management – 
Astrea 
 
257,846 
 
104,444 
 
3,208 
 
- 
5.5% 
 
1.5% 
(84,846) 
(80,331) 
Asset 
Management – 
Northacre 
 
245,067 
 
4,261 
 
- 
 
- 
6.0% 
- 
 
6,435 
 
- 
Asset 
Management – 
Real Estate 
 
197,468 
 
33,683 
 
4,627 
 
5,300 
 
15.0% 
 
2.0% 
 
(81,828) 
 
(51,649) 
Investment 
Banking 
162,215 
- 
2,481 
4,000 
16. 0% 
2.0% 
(13,582) 
(7,797) 
NCM 
81,313 
22,083 
2,354 
9,200 
15.5% 
2.5% 
(15,350) 
(9,576) 
Fixed Income 
Trading 
 
58,746 
 
13,552 
 
1,742 
 
- 
 
15.5% 
 
2.0% 
 
(7,800) 
 
(4,758) 
Investment 
Solutions 
 
27,907 
 
- 
 
- 
 
300 
15.5% 
 
2.0% 
 
(31,282) 
 
(20,685) 
 
———— 
———— 
——— 
—— 
 
 
 
 
 
1,030,562 
178,023 
14,412 
18,800 
 
 
 
 
 
══════ 
══════ 
════ 
═══ 
 
 
 
 
 
 
 
133     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
17. PAYABLES AND OTHER CREDIT BALANCES 
 
Payables and other credit balances comprise the following:  
 
 
31 December 
31 December 
 
2021 
2020 
 
 
 
Payable to clients 
9,701 
  11,554 
Customer deposits 
20,501 
37,658 
Accruals 
84,096 
79,203 
Lease liabilities (Note 17.1) 
40,399 
 40,014 
Repurchase agreements (Note 17.2) 
41,562 
63,825 
Payables against acquisitions 
226,893 
122,985 
Unclaimed dividends payable 
33,457 
33,470 
FVTPL liabilities 
1,610 
1,859 
Realised carried interest payable to employees 
1,340 
9,415 
End of service benefits 
18,493 
19,147 
Provisions (Note 17.3) 
9,844 
3,539 
Derivative financial liability  
2,117 
4,519 
Deferred revenue 
7,053 
7,722 
Other payables  
305,026 
76,250 
 
——— 
———— 
 
802,092 
511,160 
 
══════ 
═════ 
 
17.1  
Lease liabilities  
 
 
31 December 
31 December 
 
2021 
2020 
 
 
 
Current 
10,734 
13,945 
Non-current 
29,665 
26,069 
 
——— 
——— 
 
40,399 
 40,014 
 
══════ 
════ 
 
This represents liability recognised on application of IFRS 16 in relation to renting of office space for the Group. 
 
17.2  
Repurchase agreements   
 
Represents liabilities arising out of repurchase agreements entered with financial institutions. Securities sold 
subject to repurchase agreements are disclosed as pledged assets. The amounts received from the 
counterparty is included as a liability. 
 
17.3  
Movement in provisions 
 
 
 
31 December 
2021 
31 December 
2020 
 
 
 
As at 1 January  
3,539 
16,606 
Charged/(release) to profit or loss 
6,305 
(13,067) 
 
——— 
——— 
As at 31 December  
9,844 
3,539 
 
══════ 
     ════ 
 
17.4  
All other balances above, except as disclosed in note 25, are expected to be settled within 12 months 
after the end of the reporting period. 
 
 
134     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
18. OTHER FINANCIAL LIABILITIES 
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Repayable within twelve months 
81,707 
92,395 
Repayable after twelve months 
66,560 
57,588 
 
——— 
——— 
 
148,267 
149,983 
 
═════ 
═════ 
 
These comprise of issued term and wakalah investment certificates as well as other debt obligations.  
 
19. BORROWINGS 
 
Borrowings at the end of the reporting period are as follows: 
 
 
31 December 
31 December 
 
2021 
2020 
Secured 
 
 
Due to banks 
1,122,623 
1,519,267 
Due to other financial institutions (Note 19.1) 
45,579 
61,572 
Others 
33,007 
77,079 
 
———— 
———— 
 
1,201,209 
1,657,918 
Unsecured 
 
 
Due to banks 
75,226 
86,559 
Due to other financial institutions  
15,062 
30,247 
Bonds payable (Note 19.1) 
543,944 
499,317 
Others (Note 19.1 and 19.2) 
149,978 
121,660 
 
———— 
———— 
 
784,210 
737,783 
 
———— 
———— 
 
1,985,419 
2,395,701 
 
══════ 
══════ 
 
19.1 
These include borrowings amounting to 45,540 (31 December 2020: 157,430) due to related parties with an 
interest rate of 7.3% to 9.5% p.a. (2020: 7.3% to 9.5% p.a.).  
19.2 
This includes 112,401 (31 December 2020: 57,565) related to funding received by a subsidiary from its 
regulator to finance and support Small and Medium-Sized Entities (SME) lending activity of the subsidiary. 
19.3 
Finance cost includes interest of 41,895 (31 December 2020: 18,787) on the Bonds payable. 
 
Maturity profile of borrowings at the end of the year are as follows: 
 
 
31 December 
31 December  
 
2021 
2020 
Secured 
 
 
Repayable within twelve months 
803,754 
 895,471 
Repayable after twelve months 
397,455 
762,447 
 
———— 
———— 
 
1,201,209 
1,657,918 
Unsecured 
 
 
Repayable within twelve months 
82,011 
98,722 
Repayable after twelve months 
702,199 
639,061 
 
———— 
———— 
 
784,210 
737,783 
 
———— 
———— 
 
1,985,419 
2,395,701 
 
══════ 
══════ 
 
 
 
135     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
19. BORROWINGS (continued) 
 
19.4 
Summary of borrowing arrangements: 
 
31 December 2021 
Facility type 
Facility  
Amount 
Original  
Tenor 
Effective 
interest/profit rate 
Collateral 
 
 
 
 
 
Term Loan 
622,164 
Between 0 to 7 years 
1.5% - 9.5% 
1,133,859 
Bond 
543,944 
Between 2 to 3 years 
7.50% 
- 
Murabaha facility 
752,913 
Between 0 to 5 years 
3% - 9% 
1,564,705 
Revolving Facility 
66,398 
within 1 year 
4% - 5% 
84,987 
 
———— 
 
 
———— 
 
1,985,419 
 
 
2,783,551 
 
══════ 
 
 
══════ 
 
31 December 2020 
Facility type 
Facility 
Amount 
Original 
Tenor 
Effective 
interest/profit rate 
Collateral 
 
 
 
 
 
Term Loan 
941,323 
Between 0 to 7 years 
1.5% - 9.5% 
1,107,101 
Bond 
499,317 
Between 2 to 3 years 
7.50% 
-  
Murabaha facility 
924,771 
Between 0 to 5 years 
3% - 9% 
986,105 
Revolving Facility 
30,290 
within 1 year 
4% - 5% 
15,516 
 
———— 
 
 
———— 
 
2,395,701 
 
 
2,108,722 
 
══════ 
 
 
══════ 
 
Collaterals mainly include cash, liquid securities, land and private equity holdings.  
 
19.5 Reconciliation of liabilities arising from financing activities 
 
The table below details changes in the Group’s liabilities arising from financing activities. Liabilities arising from 
financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s 
consolidated statement of cash flows as cash flows from financing activities. 
 
 
 
 
 
Non-cash changes 
 
 
 
At 1 January 
2021 
 
Acquisitions 
on business 
combination 
 
Financing 
cash 
flows (i) 
 
Other 
charges 
(ii) 
Foreign 
currency 
exchange 
difference 
 
At 31 
December 
2021 
 
 
 
 
 
 
 
Due to banks 
1,605,826 
- 
(393,760) 
(14,217) 
- 
1,197,849 
Due to other financial 
institutions 
91,819 
- 
(31,659) 
481 
- 
60,641 
Bonds payable 
499,317 
- 
47,584 
(2,957) 
- 
543,944 
Others 
198,739 
- 
(17,417) 
1,663 
- 
182,985 
 
———— 
———— 
———— 
———— 
———— 
———— 
 
2,395,701 
- 
(395,252) 
(15,030) 
- 
1,985,419 
 
══════ 
══════ 
══════ 
══════ 
══════ 
══════ 
 
 
 
 
 
 
 
 
 
 
136     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
19. BORROWINGS (continued) 
 
19.5 Reconciliation of liabilities arising from financing activities (continued) 
 
 
 
 
 
 
Non-cash changes 
 
 
 
 
At 1 
January 
2020 
 
Acquisitions 
on business 
combination 
 
Financing 
cash 
flows (i) 
 
Other 
charges 
(ii) 
Foreign 
currency 
exchange 
difference 
 
Transfer 
to Held 
for sale 
 
At 31 
December 
2020 
 
 
 
 
 
 
 
 
Due to banks 
1,718,797 
64,427 
(111,911) 
 2,537 
- 
(68,024) 
1,605,826 
Due to other 
financial 
institutions 
98,302 
- 
(6,410) 
(73) 
- 
- 
91,819 
Bonds payable 
332,378 
- 
 163,617 
 3,322 
- 
- 
499,317 
Others 
100,592 
51,422 
95,177 
2,970 
 
(51,422) 
198,739 
 
———— 
———— 
———— 
——— 
———— 
——— 
———— 
 
2,250,069 
115,849 
 140,473 
 8,756 
- 
(119,446) 
2,395,701 
 
══════ 
══════ 
══════ 
═════ 
══════ 
═════ 
══════ 
 
 
 
 
 
 
 
 
(i) 
Net cash flows from proceeds and repayment of borrowings 
(ii) 
Other charges include interest accruals and repayments 
 
20. SHARE CAPITAL 
 
 
Number of shares 
Value 
 
 
 
31 December 2021  
2,535,720 
2,535,720 
 
══════ 
══════ 
 
 
 
31 December 2020  
2,535,720 
2,535,720 
 
══════ 
══════ 
 
Authorised, issued and fully paid share capital comprises 2,535,720,000 shares (31 December 2020: 2,535,720,000 
shares) of AED 1 per share (31 December 2020: AED 1 per share). Each share carries one vote and the right to 
receive dividends.  
 
At 31 December 2021, the Company had Nil (31 December 2020: 28,107,748) treasury shares outstanding. During 
year, the Company sold 28,107,748 treasury shares for total proceeds of 19,635 (2020: nil). The cost of these shares 
was 31,130. 
 
 
137     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
21. OTHER RESERVES  
 
 
Merger 
reserve 
(21.1) 
Investment 
revaluation 
reserve 
Cash flow 
hedge 
reserve 
(21.2) 
Translatio
n reserve 
Total 
 
 
 
 
 
 
As at 1 January 2021 
(1,410,720) 
(20,781) 
(50,031) 
42,386 
(1,439,146) 
Remeasurement of equity 
investments carried at FVOCI 
- 
(35,134) 
- 
- 
(35,134) 
Cash flow hedge 
- 
- 
53,347 
- 
53,347 
Translation of operations of 
foreign subsidiaries 
- 
- 
- 
(15,612) 
(15,612) 
NCI share  
- 
6,287 
- 
5,806 
12,093 
 
_________ 
_________ 
_________ 
_________ 
_________ 
Other comprehensive 
(loss)/income 
- 
(28,847) 
53,347 
(9,806) 
14,694 
 
_________ 
_________ 
_________ 
_________ 
_________ 
As at 31 December 2021 
(1,410,720) 
(49,628) 
3,316 
32,580 
(1,424,452) 
 
══════ 
═════ 
═════ 
═════ 
═══════ 
 
 
 
 
 
 
As at 31 December 2020 
(1,410,720) 
(20,781) 
(50,031) 
42,386 
(1,439,146) 
 
══════ 
════ 
════ 
════ 
══════ 
 
21.1  
Merger reserve represents the excess value of the consideration paid by the legal acquirer (SHUAA) 
over the nominal value of the pre-merger share capital of the legal acquiree (ADFG). 
 
21.2  
This includes a share of the cash flow hedge reserve of an associate which was disposed in second 
quarter of 2021. 
 
22. EARNINGS PER SHARE 
 
Basic earnings per share has been computed by dividing the net profit attributable to the Owners with the 
weighted average number of ordinary shares outstanding  
 
 
31 December  
2021 
31 December 
2020 
 
 
 
 
 
 
Profit attributable to the Owners from continuing operations 
35,398 
127,991 
 
——— 
——— 
Profit attributable to the Owners 
24,238 
 125,263 
 
——— 
———— 
Weighted average number of ordinary shares 
2,535,720 
2,535,720 
 
——— 
——— 
 
 
 
Earnings per share attributable to Owners from continuing operations 
0.01 
0.05 
 
═════ 
═════ 
 
 
 
Earnings per share attributable to Owners  
0.01 
0.05 
 
═════ 
═════ 
 
Diluted earnings per share as of 31 December 2021 and 31 December 2020 are equivalent to basic earnings per 
share. 
 
 
 
 
138     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
23. RELATED PARTY TRANSACTIONS AND BALANCES  
 
The Group enters into transactions with companies and entities that fall within the definition of a related party. 
Related parties represent significant shareholders, directors and key management personnel of the Group, their 
close family members and entities controlled, jointly controlled or significantly influenced by such parties. 
 
The Group conducts its transactions with related parties on arm’s length terms, with any exceptions to be 
specifically approved by the Board. In all cases, transactions with related parties are required to be conducted 
in compliance with all relevant laws and regulations. Where a Board member has an actual or perceived conflict 
of interest over an issue to be considered by the Board, the interested member may not vote on any relevant 
resolutions and can also be asked by the Chairman not to participate in the relevant Board discussions.   
 
The nature of significant related party transactions and the amounts due to/from related parties were as 
follows: 
 
 
31 December 
31 December 
 
2021 
2020 
Loan, advances and finance leases 
 
 
Associates 
42,453 
92,173 
Key management personnel 
- 
879 
Shareholders 
- 
3,712 
 
——— 
——— 
 
42,453 
96,764 
 
═════ 
════ 
Receivables and other debit balances 
 
 
Associates 
14,363 
15,860 
 
 
════ 
════ 
Borrowings 
 
 
Associates 
45,540 
88,954 
Shareholders 
- 
68,476 
 
——— 
——— 
 
45,540 
157,430 
 
═════ 
════ 
 
Significant transactions with related parties included in these consolidated financial statements are as follows: 
 
 
31 December 
31 December  
 
2021 
2020 
 
 
 
Directors remuneration 
2,807 
3,900 
 
════ 
═════ 
Key management compensation: 
 
 
Salaries, bonuses and other benefits 
12,989 
12,032 
Post-employment benefits 
336 
334 
 
——— 
——— 
 
13,325 
12,366 
 
════ 
════ 
Revenue earned from related parties 
 
 
Other related parties 
20,805 
20,043 
Associates 
- 
- 
 
════ 
════ 
Finance cost on the borrowings  
 
 
Associates 
2,392 
2,601 
Shareholders 
909 
4,978 
 
——— 
——— 
 
3,301 
7,579 
 
════ 
════ 
Interest paid on borrowings 
 
 
Associates 
1,793 
2,390 
Shareholders 
909 
4,964 
 
——— 
——— 
 
2,702 
7,354 
 
═════ 
═════ 
 
Finance lease repayments received from associates was AED 646 (31 December 2020: AED 822). 
 
139     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
24. FINANCIAL INSTRUMENTS 
 
24.1  
Fair value of financial instruments 
 
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by 
valuation technique: 
 
-  
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; 
-  
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value 
are observable, either directly or indirectly; and 
-  
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are 
not based on observable market data. 
 
The following table shows an analysis of financial assets recorded at fair value by level of the fair value hierarchy: 
 
 
31 December 2021 
 
Level 1 
Level 2 
Level 3 
Total 
Financial Assets 
 
 
 
 
FVTPL 
 
 
 
 
-Equity investments 
2,335,017 
- 
2,236 
2,337,253 
-Fixed income investments 
90,842 
6,296 
- 
97,138 
-Fund investments 
- 
84,352 
571,481 
655,833 
 
 
 
 
 
FVOCI 
 
 
 
 
-Equity investments 
- 
- 
- 
- 
-Fund investments 
- 
- 
23,366 
23,366 
 
——— 
——— 
——— 
——— 
 
2,425,859 
90,648 
597,083 
3,113,590 
 
═════ 
═════ 
═════ 
═════ 
Financial Liabilities 
 
 
 
 
FVTPL 
1,610 
2,117 
- 
3,727 
Payable to unit holders 
- 
986,046 
- 
986,046 
Lease liability 
- 
- 
40,399 
40,399 
 
——— 
——— 
——— 
——— 
 
1,610 
988,163 
40,399 
1,030,172 
 
═════ 
══════ 
═════ 
══════ 
 
 
 
 
 
During the year, the Group recognized fair value gains amounting to 654,922 (31 December 2020: losses of 
(255,198)), on investments carried at FVTPL. The Group purchased investments of 476,050 (2020: 155,822) during 
the financial year ended 31 December 2021. 
 
The above non-derivative equity investments are not held for trading and have been designated by the Group 
as at FVOCI at initial recognition as the Group considers these investments to be strategic in nature. These 
include changes in fair value losses amounting to (35,134) recognised during the year (31 December 2020: 
(16,963)).  
 
FVTPL and FVOCI investments include securities with market value of 870,791 (31 December 2020: 1,324,815) which 
are pledged against borrowings (Note 19).  
 
During the year, the Group sold equity investment held at FVOCI as part of management’s policy for disposal of 
non-core units. The fair value at the time of disposal was 13,734. No gain or loss was realized on disposal as it 
was sold at fair value. 
 
 
140     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
24. FINANCIAL INSTRUMENTS (continued) 
 
24.1  
Fair value of financial instruments (continued) 
 
 
31 December 2020 
 
Level 1 
Level 2 
Level 3 
Total 
Financial Assets 
 
 
 
 
FVTPL 
 
 
 
 
-Equity investments 
1,722,623 
154 
2,299 
1,725,076 
-Fixed income investments 
53,093 
8,627 
1,133 
62,853 
-Fund investments 
- 
 97,079 
414,919 
 511,998 
 
 
 
 
 
FVOCI 
 
 
 
 
-Equity investments 
78,365 
- 
- 
78,365 
-Fund investments 
- 
- 
50,707 
50,707 
 
——— 
——— 
——— 
——— 
 
1,854,081 
 105,860 
 469,058 
 2,428,999 
 
════ 
════ 
════ 
════ 
Financial Liabilities 
 
 
 
 
FVTPL 
1,859 
4,519 
- 
6,378 
Payable to unit holders 
- 
578,757 
- 
578,757 
Lease liability 
- 
- 
40,014 
40,014 
 
——— 
——— 
——— 
——— 
 
1,859 
583,276 
40,014 
625,149 
 
════ 
════ 
════ 
════ 
 
 
 
 
 
 
Financial assets recorded at fair value 
 
The following is a description of the determination of fair value for financial instruments which are recorded at 
fair value using valuation techniques. These incorporate the Group’s estimate of assumptions that a market 
participant would make when valuing the instruments. 
 
At fair value through profit or loss: 
 
Investments and financial liabilities carried at FVTPL are valued using market prices in active markets or 
valuation techniques which incorporate data which is both observable and non-observable. This category 
includes quoted and unquoted securities and funds which invest in underlying assets which are in turn valued 
based on both observable and non-observable data. Observable inputs include market prices (from active 
markets), foreign exchange rates and movements in stock market indices. Unobservable inputs include 
assumptions regarding expected future financial performance, discount rates and market liquidity discounts. 
Investments classified as FVTPL falling under level 2 category have been valued using the Net Asset Value. 
141     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
24. FINANCIAL INSTRUMENTS (continued) 
 
24.1  
Fair value of financial instruments (continued) 
 
At fair value through other comprehensive income: 
 
Investments carried at FVOCI financial assets are valued using quoted prices in active markets, valuation techniques or pricing models and consist of quoted equities, and 
unquoted funds. These assets are valued using quoted prices or models which incorporate data which is both observable and non-observable. The non-observable inputs 
to the models include assumptions regarding the future financial performance of the investee, its risk profile and economic assumptions regarding the industry and 
geographical jurisdiction in which the investee operates. The following table shows the impact on the fair value of level 3 instruments reflecting change in underlying 
assumptions used in the valuation by class of instrument. 
 
Financial 
assets 
Fair value as at 
Fair 
value 
hierarchy 
Valuation 
technique(s) 
and Key 
input(s) 
Significant 
unobservable 
input(s) 
Effect of changes 
in underlying 
assumptions  
 
2021 
Effect of 
changes in 
underlying 
assumptions  
 
2020 
 
 
Sensitivity analysis 
 
 
Relationship of unobservable 
inputs to fair value 
 
31/12/21 
31/12/20 
FVTPL 
 
 
 
 
 
 
 
 
Equity 
investments 
2,236 
2,299 
3 
NAV2 
Net asset 
value 
+/- 112 
+/- 115 
± 5% change in NAV, 
impacts fair value 
The higher the discount rate, 
the lower the fair value 
 
 
 
 
 
 
 
 
 
 
Fixed Income   
- 
1,133 
3 
Discounted 
cash flow1 
Discount 
rate 
- 
+/- 11 
± 1% change in 
discount rate, impacts 
fair value 
The higher the discount rate, 
the lower the fair value 
 
 
 
 
 
 
 
 
 
 
Fund 
investments 
571,481 
414,919 
3 
Discounted 
cash flow1 
 and NAV2   
Net asset 
value 
adjusted 
with market 
risk 
+/- 28,574 
+/- 20,836 
± 5% change in NAV 
and 1% change in 
discount rate, impacts 
fair value 
The higher the market risk, the 
lower the fair value and the 
higher the discount rate, the 
lower the fair value  
FVOCI 
 
 
 
 
 
 
 
 
Fund 
investments  
23,366 
50,707 
3 
NAV2  
Net asset 
value 
+/- 1,168 
+/- 2,535 
± 5% change in NAV, 
impacts fair value   
The higher the market risk, the 
lower the fair value 
 
Significant unobservable inputs in Level 3 instruments valuations 
 
1Discounted cash flow models are used to fair value our investments. The cash flow model includes assumptions related to future cash inflows/outflows, discount rate and growth rate. The extent of the adjustment varied 
according to the characteristics of each investment. 
 
2Net asset value represents the estimated value of a security based on valuations received from the investment or fund manager. The valuation of certain private equity securities is based on the economic benefit we 
derive from our investment. 
142     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
24. FINANCIAL INSTRUMENTS (continued) 
 
24.1  
Fair value of financial instruments (continued) 
 
Movements in level 3 financial assets measured at fair value 
 
During the period, there were no transfers between levels.  
The following table shows a reconciliation of the opening and closing balance of level 3 financial assets which are recorded at fair value: 
 
31 December 2021 
 
Balance at  
1 January 2021 
Acquired on 
business 
combination 
 
 
Additions 
Disposal 
Gain/(loss) 
through P&L 
Gain/(loss) 
through OCI 
Transfers 
from/(to) 
levels 1 & 2 
Balance at  
31 December  
 2021 
FVTPL 
 
 
 
 
 
 
 
 
Equity Investments 
2,299 
- 
- 
 
(63) 
 
- 
2,236 
Fixed Income   
1,133 
- 
- 
 
(1,133) 
 
- 
- 
Fund Investment 
414,919 
- 
137,992 
 
18,570 
 
- 
571,481 
 
 
 
 
 
 
 
 
 
FVOCI 
 
 
 
 
 
 
 
 
Fund Investment 
50,707 
- 
- 
- 
- 
(27,341) 
- 
23,366 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
 
469,058 
- 
137,992 
- 
 17,374 
(27,341) 
- 
597,083 
 
═════ 
═════ 
═════ 
═════ 
══════ 
═════ 
═════ 
═════ 
 
 
31 December 2020 
 
Balance at  
1 January 2020 
Acquired on 
business 
combination 
 
 
Additions 
 
 
Disposal 
Gain/(loss) 
through P&L 
Gain/(loss) 
through OCI 
Transfers 
from/(to) 
levels 1 & 2 
Balance at  
31 December  
2020 
FVTPL 
 
 
 
 
 
 
 
 
Equity Investment 
20,969 
- 
- 
- 
(18,670) 
- 
- 
2,299 
Fixed Income   
1,129 
- 
- 
- 
4 
- 
- 
1,133 
Fund Investment 
 314,157 
- 
185,104 
- 
 (84,342) 
- 
- 
414,919 
 
 
 
 
 
 
 
 
 
FVOCI 
 
 
 
 
 
 
 
 
Fund Investment 
51,656 
- 
- 
- 
- 
(949) 
- 
50,707 
 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
——— 
 
 387,911 
- 
185,104 
- 
 (103,008) 
(949) 
- 
469,058 
 
═════ 
═════ 
═════ 
═════ 
══════ 
════ 
═════ 
═════ 
Gains and losses on level 3 financial assets included in the consolidated statement of profit or loss for the year are detailed as follows: 
 
 
31 December  
2021 
31 December  
2020 
Realised and unrealised gains/(losses) 
17,374 
(103,008) 
 
═════ 
═════ 
143     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
25. FINANCIAL RISK MANAGEMENT  
 
Introduction 
 
The inherent risk relating to the Group’s activities is managed through a process of ongoing identification, 
measurement and monitoring, subject to risk limits and other controls. The Group is exposed to credit risk, liquidity 
risk, market risk (comprising, interest rate risk, foreign exchange risk and equity price risk) and operational risk. 
 
COVID-19 pandemic 
 
Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial 
markets. While it is not possible to accurately predict the full impact that COVID-19 will have on the results from 
operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration and 
severity of the pandemic and containment measures, our compliance with these measures has impacted our day-
to-day operations and could disrupt our business and operations. 
 
Risk management structure 
 
The Board of Directors is ultimately responsible for identifying and controlling risk relating to the Group’s activities 
and recognises the importance of managing risk in line with shareholder risk appetite.  
 
Authority to set Group-wide rules to manage credit, liquidity and market risk are delegated to the Governance 
Committees of the Group and to each subsidiary. However, enterprise-wide risk is monitored by the Group 
Management Committees which ensures that Group rules are adhered to.  
 
Credit risk 
 
Credit risk, or the risk of loss due to default on payment, is controlled by the application of credit approvals and 
monitoring procedures. Rules to limit exposure to credit risk are set by the Board of Directors and authority is 
delegated to the Governance Committees to set rules by business and strategy. Adherence to overall limits, 
authorisation, concentration and collateral requirements are independently monitored and managed by Risk 
Management. 
 
Risk Management oversees the status of receivables, exposures and provisions and mitigation steps are 
approved for any balances considered doubtful in accordance with internal and regulatory policies and 
guidelines. 
 
Credit risk management 
 
The estimation of credit risk for risk management purpose is complex and requires use of models, as the exposure 
varies with changes in market condition, expected cash flows and the passage of time. The assessment of credit 
risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring and of the 
associated loss ratios. The Group measures credit risk using PD, EAD and LGD.  
 
COVID-19 impact on measurement of ECL 
 
IFRS 9 framework requires the estimation of Expected Credit Loss (ECL) based on current and forecast economic 
conditions. Accordingly, the Group has reviewed the potential impact of COVID-19 outbreak on the inputs and 
assumptions for IFRS 9 ECL measurement in light of available information. Overall, the COVID-19 situation remains 
fluid and is rapidly evolving at this point, which makes it challenging to reliably reflect impacts in our ECL 
estimates. Notwithstanding this, recognizing that the outbreak is expected to have an impact on the macro-
economic environment beyond reasonable doubt, the Group has adjusted the macro-economic factors in the ECL 
model on the basis of available information. 
 
The Group has also reassessed its exposures as at period end and observed no significant deterioration in credit 
risk due to COVID-19. 
 
 
 
 
144     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Credit risk grading 
 
It is the Group’s policy to maintain accurate and up to date risk ratings across the credit portfolio. This facilitates 
focused management of the applicable risks and the comparison of credit exposures across all lines of business, 
geographic regions and products. The rating system is supported by a variety of financial analytics, combined 
with processed market information to provide the main inputs for the measurement of counterparty risk. All 
internal risk ratings are tailored to the various categories and are derived in accordance with the Group’s rating 
policy. The attributable risk ratings are assessed and updated regularly.  The credit grades are calibrated, such 
that the risk of default increases exponentially at each higher risk grade. 
 
The following data are typically used to monitor the Group’s exposures: 
● 
Information obtained at the time of extending the facility and periodic review of customer files – e.g. 
audited financial statements, management accounts, budgets and projections. 
 
● 
Requests for and granting of forbearance 
● 
Existing and forecast changes in business, financial and economic conditions 
● 
Utilization of the granted limit 
● 
Payment record – this includes overdue status as well as a range of variables about payment ratios. 
 
The Group analyses all data collected using statistical models and estimates the remaining lifetime PD of 
exposures and how these are expected to change over time. The factors taken into account in this process include 
macro-economic data such as oil prices, non-oil commodities indexes, etc. The Group generates a ‘based case’ 
scenario of the future direction of relevant economic variables as well as representative range of other possible 
forecast scenarios. 
 
Definition of default and credit-impaired assets 
 
The Group defines a financial instrument as in default, which is fully aligned with definition of credit impaired, 
when it meets one or more of the following criteria: 
 
● 
The borrower is more than 90 days past due on its contractual payments. 
● 
The borrower meets unlikeliness to pay criteria, which indicates the borrower is in significant financial 
difficulty. These are instances like long-term forbearance, borrower is insolvent, borrower is entering 
bankruptcy etc. 
 
Significant increase in credit risk 
 
The Group considers a financial instrument to have experienced a significant increase in credit risk when there is 
significant increase in credit risk is measured by comparing the risk of default estimated at origination. The Group 
also considers in its assessment of significant increase in credit risk, various qualitative factors like significant 
adverse changes in business, extension of term granted, actual and expected forbearance or restructuring, early 
sign of cash flows and liquidity problems. 
 
Collateral and other credit enhancements 
 
The amount and type of collateral depends on an assessment of the credit risk of the counterparty. Collaterals 
mainly include cash, liquid securities, land and buildings, vessels, equipment, mortgages on vehicles and private 
equity holdings. 
 
Management of the Group monitors the market value of collateral, requests additional collateral in accordance 
with the underlying agreement, and monitors the market value of collateral obtained during its review of the 
adequacy of the allowance for impairment losses.  
 
 
145     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Maximum exposure to credit risk 
 
The maximum exposure to credit risk for the components of the consolidated statement of financial position, 
before considering other credit enhancement, is shown below: 
 
 
Gross maximum 
exposure 
31 December 
2021 
Gross maximum 
exposure 
31 December 2020 
 
 
 
Cash and deposits with banks 
460,648 
 416,975 
Receivables and other debit balances 
358,747 
234,217 
Loans, advances and finance leases 
259,763 
358,793  
Total credit risk exposure 
1,079,158 
1,009,985 
 
Credit risk consideration 
The Group does not have significant credit risk exposure to any single counterparty or group of counterparties 
that have similar credit risk. The Group does not have any exposure to Russian and/or Ukranian markets. The 
geographical concentration of the Group’s financial assets at 31 December 2021 and 2020 is set out below: 
 
31 December 2021 
Assets 
UAE 
GCC* 
MENA** 
North 
America 
Europe 
Asia 
Total 
Cash and deposits 
with banks 
198,573 
223,015 
8,794 
-   
30,266 
-   
460,648 
Receivables and 
other debit 
balances 
268,876 
15,055 
17,549 
390 
49,170 
- 
351,040 
Loans, advances and 
finance leases 
43,214 
167,598 
-   
-   
25,454 
- 
236,266 
 
———— 
———— 
———— 
———— 
———— 
——— 
——— 
 
510,662 
405,668 
26,343 
390 
104,890 
- 
1,047,954 
 
══════ 
══════ 
══════ 
══════ 
══════ 
════ 
═════ 
 
31 December 2020 
Assets 
UAE 
GCC* 
MENA** 
North 
America 
Europe 
Asia 
Total 
Cash and deposits 
with banks 
 
214,046 
 
130,901 
 
5,529 
 
1,185  
 
61,276  
 
4,038 
 
416,975 
Receivables and 
other debit 
balances 
 
93,135 
 
42,639 
 
18,080 
 
- 
 
48,420 
 
4 
 
202,278 
Loans, advances and 
finance leases 
 
118,102 
 
171,927 
 
54,794 
 
6  
 
1,403  
 
- 
 
346,232 
 
———— 
———— 
———— 
———— 
———— 
——— 
——— 
 
425,283 
345,467 
78,403 
1,191 
111,099 
4,042 
965,485 
 
══════ 
══════ 
══════ 
══════ 
══════ 
════ 
═════ 
 
* 
GCC region excluding UAE 
**  
MENA region excluding GCC and UAE 
 
Credit quality analysis and measurement of ECL 
 
The credit quality of financial assets is managed by the Group using internal credit ratings. The Company’s cash 
and bank balances represents high grade assets which are placed with financial institutions with high credit 
rating. The Group determines based on the credit quality of financial assets whether they are subject to a 12-
month ECL or lifetime ECL and, in the latter case, whether they are credit-impaired (loans, advances and finance 
leases). The Group uses a provision matrix (lifetime ECL) for trade receivables. 
 
 
146     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Credit quality analysis and measurement of ECL (continued) 
 
The ECL modelling does not differ for Purchased or Originated Credit Impaired (“POCI”) financial assets, except 
that (a) gross carrying value and discount rate are based on cash flows that were recoverable at initial 
recognition of the asset, rather than based on contractual cash flows, and (b) the ECL is always a lifetime ECL. 
POCI assets are financial assets that are credit-impaired upon initial recognition, such as impaired loans acquired 
in a past business combination. ECL for POCI financial assets is always measured on a lifetime basis. The Group 
therefore only recognizes the cumulative changes in lifetime expected credit losses. Tables below show the credit 
quality of financial assets of the Group other than cash and bank balances and the ECL recognised thereon.  
 
 
 
31 December 2021 
 
Stage 1 
Stage 2 
Stage 3 
POCI 
Total 
Loans and advances 
 
 
 
 
 
Performing 
44,155 
- 
- 
- 
44,155 
Non-performing 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
Gross loans and advances 
44,155 
- 
- 
- 
44,155 
Allowance for impairment  
(11,232) 
- 
- 
- 
(11,232) 
 
——— 
——— 
——— 
——— 
——— 
Carrying amount  
32,923 
- 
- 
- 
32,923 
 
════ 
════ 
════ 
════ 
════ 
 
 
31 December 2020 
 
Stage 1 
Stage 2 
Stage 3 
POCI 
Total 
Loans and advances 
 
 
 
 
 
Performing 
88,783 
- 
- 
- 
88,783 
Non-performing 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
Gross loans and advances 
88,783 
- 
- 
- 
88,783 
Allowance for impairment  
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
Carrying amount  
88,783 
- 
- 
- 
88,783 
 
════ 
════ 
════ 
════ 
════ 
 
Finance leases  
31 December 2021 
Stage 1 
Stage 2 
Stage 3 
POCI 
Total 
 
 
 
 
 
Performing 
111,604 
22,193 
- 
- 
133,797 
Non-performing 
- 
- 
- 
44,356 
44,356 
 
——— 
——— 
——— 
——— 
——— 
Finance leases 
111,604 
22,193 
- 
44,356 
178,153 
Allowance for impairment  
(65) 
(521) 
- 
(10,549) 
(11,135) 
——— 
——— 
——— 
——— 
——— 
Carrying amount  
111,539 
21,672 
- 
33,807 
167,018 
 
════ 
════ 
════ 
════ 
════ 
 
 
147     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Finance leases 
31 December 2020 
Stage 1 
Stage 2 
Stage 3 
POCI 
Total 
 
 
 
 
 
Performing 
167,739 
10,652 
- 
- 
178,391 
Non-performing 
- 
- 
- 
16,845 
16,845 
 
——— 
——— 
——— 
——— 
——— 
Finance leases 
167,739 
10,652 
- 
16,845 
195,236 
Allowance for impairment  
(2,049) 
(25) 
- 
(9,859) 
(11,933) 
——— 
——— 
——— 
——— 
——— 
Carrying amount  
165,690 
10,627 
- 
6,986 
183,303 
 
════ 
════ 
════ 
════ 
════ 
 
Margin Lending  
31 December 2021 
Stage 1 
Stage 2 
Stage 3 
POCI 
Total 
 
 
 
 
 
Performing 
37,097 
- 
- 
- 
37,097 
Non-performing 
- 
- 
- 
358 
358 
 
——— 
——— 
——— 
——
— 
——— 
Margin Lending 
37,097 
- 
- 
358 
37,455 
Allowance for impairment  
(772) 
- 
- 
(358) 
(1,130) 
 
——— 
——— 
——— 
——
— 
——— 
Carrying amount  
36,325 
- 
- 
- 
36,325 
 
════ 
════ 
════ 
════ 
════ 
 
Margin Lending 
31 December 2020 
Stage 
1 
Stage 2 
Stage 3 
POCI 
Total 
 
 
 
 
 
Performing 
74,847 
- 
- 
- 
74,847 
Non-performing 
- 
- 
- 
(73) 
(73) 
 
——— 
——— 
——— 
——— 
——— 
Margin Lending 
74,847 
- 
- 
(73) 
74,774 
Allowance for impairment  
- 
- 
- 
(628) 
(628) 
 
——— 
——— 
——— 
——— 
——— 
Carrying amount  
74,847 
- 
- 
(701) 
74,146 
 
════ 
════ 
════ 
════ 
════ 
148     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Loans and advances provision movement 
 
 
31 December 2021 
31 December 
2020 
 
Stage 1 
12 months ECL 
Stage 2 
Lifetime ECL 
Stage 3 
Lifetime ECL 
 
POCI 
 
Total 
 
Total 
Loans and advances  
 
 
 
 
 
 
Balance at 1 January 
- 
- 
- 
- 
- 
 (4,323) 
Allowance for impairment – Charge for the year  
(11,232) 
- 
- 
- 
(11,232) 
- 
Reversal of allowance 
- 
- 
- 
- 
- 
4,323 
Changes in allowance for impairment 
 
 
 
 
 
 
- Transfer to Stage 1 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 2 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 3 
- 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
——— 
Closing balance at 31 December 
(11,232) 
- 
- 
- 
(11,232) 
- 
 
════ 
════ 
════ 
════ 
════ 
════ 
 
Finance leases provision movement 
 
 
 
31 December 2021 
31 December 
2020 
 
Stage 1 
12 months ECL 
Stage 2 
Lifetime ECL 
Stage 3 
Lifetime ECL 
 
POCI 
 
Total 
 
Total 
Finance leases 
 
 
 
 
 
 
Balance at 1 January 
(2,049) 
(24) 
- 
(9,860) 
(11,933) 
(765) 
Allowance for impairment – Charge for the year  
- 
(497) 
- 
(6,231) 
(6,728) 
(11,168) 
Reversal of allowance 
1,984 
- 
- 
5,542 
7,526 
- 
Changes in allowance for impairment 
 
 
 
 
 
 
- Transfer to Stage 1 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 2 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 3 
- 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
——— 
Closing balance at 31 December 
(65) 
(521) 
- 
(10,549) 
(11,135) 
(11,933) 
 
════ 
════ 
════ 
════ 
════ 
════ 
149     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Margin lending provision movement 
 
 
 
31 December 2021 
31 December 
2020 
 
Stage 1 
12 months ECL 
Stage 2 
Lifetime ECL 
Stage 3 
Lifetime ECL 
 
POCI 
 
Total 
 
Total 
Margin lending  
 
 
 
 
 
 
Balance at 1 January 
- 
- 
- 
(628) 
(628) 
(202) 
Allowance for impairment – Charge for the year  
- 
- 
- 
(502) 
(502) 
(426) 
Write off  
- 
- 
- 
- 
- 
- 
Reversal of allowance 
- 
- 
- 
- 
- 
- 
Changes in allowance for impairment 
 
 
 
- 
- 
- 
- Transfer to Stage 1 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 2 
- 
- 
- 
- 
- 
- 
- Transfer to Stage 3 
- 
- 
- 
- 
- 
- 
 
——— 
——— 
——— 
——— 
——— 
——— 
Closing balance at 31 December 
- 
- 
- 
(1,130) 
(1,130) 
 (628) 
 
════ 
════ 
════ 
════ 
════ 
════ 
 
 
150     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Collateral and other credit enhancements  
 
The table below details the fair value of the collateral which is updated regularly: 
 
 
Loans, advances and finance leases 
 
31 December 2021 
31 December 2020 
Against individually impaired: 
 
 
Properties 
131,231 
11,853 
Fixed income and equities 
34,003 
522,276 
Others 
139,052 
250,011 
 
——— 
——— 
Closing balance at 31 December 
304,286 
784,140 
 
════ 
════ 
 
The credit loss allowance for trade receivables is determined according to provision matrix presented in the 
table below. The provision matrix is based on the number of days that an asset is past due, adjusted for forward 
looking information as described in note 4.2.  
 
 
0-30  
days 
31-180 
days 
>180  
days 
Total 
31 
December 
2021 
Total 
31 
December 
2020 
Trade receivables and managed 
funds 
 
 
 
 
 
Gross carrying amount 
18,452 
60,015 
19,681 
98,148 
127,481 
ECL 
- 
- 
(7,707) 
(7,707) 
(19,925) 
 
——— 
——— 
——— 
——— 
——— 
 
18,452 
60,015 
11,974 
90,441 
107,556 
 
════ 
════ 
════ 
════ 
════ 
 
Liquidity risk  
Liquidity risk is the risk that the Group will be unable to meet its funding requirements and arises principally on 
the Group’s borrowings, payables and other credit balances and other financial liabilities.   
 
Liquidity risk management  
 
To limit this risk, management has arranged diversified funding sources, managed assets with liquidity in mind 
and monitored liquidity on a daily basis.  
 
The Group has already taken various measures to manage the funding and liquidity risk including closely 
monitoring cash flows and forecasts.  
 
The Group is strengthening its liquidity buffer through working capital management and fund-raising initiatives. 
The Group believes that the current cash and cash equivalents provide sufficient level of liquidity and stability 
during this time of uncertainty. 
 
The Group’s approach aims to always have sufficient liquidity to meet its liabilities when due, without incurring 
unacceptable losses and without materially affecting the return on capital. The Risk Committee of the Board 
(“RCB”) and Asset Liabilities Committee (“ALCO”) set minimum liquidity ratios and cash balance requirements 
which are then approved by the Board. The Group collates the projected cash flow and liquidity profiles of its 
financial assets and financial liabilities. It maintains a portfolio of short-term liquid assets to cover requirements, 
largely consisting of short-term liquid placements with financial institutions.  
 
 
151     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Liquidity risk management (continued) 
 
The various liquidity monitoring metrics are monitored by both the RCB and ALCO against internally set limits 
which have been approved by the Board. The primary measures of liquidity used by the Group are stock of liquid 
assets, liquidity coverage ratio and net funding requirement. The oversight of the liquidity risk by the Board, RCB 
and ALCO also includes the monitoring of the Group's compliance with the debt covenants.     
 
The maturity profile of assets and liabilities as of the reporting date, determined on the basis of the remaining 
contractual maturity is as follows. Where assets have no contractual maturity date (*) management has made 
an estimate of the maturity date based on the liquidity of the asset and their intention. 
 
31 December 2021 
Less than 12 
Months 
1-5  
Years 
More than 
5 years 
Grand 
total 
 
 
 
 
 
Cash and deposits with banks 
447,865 
9,748 
3,035 
460,648 
Receivables and other debit balances 
289,131 
61,909 
 
351,040 
Loans, advances and finance leases 
164,457 
71,809 
- 
236,266 
Financial assets at fair value through profit or loss 
(FVTPL)* 
2,289,691 
800,533 
- 
3,090,224 
Financial assets at fair value through other 
comprehensive income (FVOCI)* 
- 
23,366 
- 
23,366 
Investments in associates* 
297,485 
56,551 
- 
354,036 
Assets of disposal groups classified as held for 
sale* 
5,929 
- 
- 
5,929 
 
———— 
———— 
———— 
———— 
Total Assets 
3,494,558 
1,023,916 
3,035 
4,521,539 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Payables and other credit balances 
738,406 
49,373 
14,313 
802,092 
Other financial liabilities 
81,707 
66,560 
- 
148,267 
Borrowings 
885,765 
1,027,173 
72,481 
1,985,419 
Payables to unit holders* 
- 
- 
986,046 
986,046 
Liabilities included in disposal groups classified as 
held for sale* 
- 
- 
- 
- 
 
———— 
———— 
———— 
———— 
Total Liabilities and Equity 
1,705,878 
1,143,106 
1,072,840 
3,921,824 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Net liquidity gap 
1,788,680 
(119,190) 
(1,069,805) 
599,715 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Cumulative liquidity gap – 31 December 2021 
1,788,680 
1,669,490 
599,715 
- 
 
———— 
———— 
———— 
———— 
 
 
 
152     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Liquidity risk management (continued) 
 
31 December 2020 
Less than 
12 Months 
1-5  
Years 
More than 
5 years 
Grand  
Total 
 
 
 
 
 
Cash and deposits with banks 
409,723 
7,252 
- 
 416,975 
Receivables and other debit balances 
 209,640 
 4,652 
- 
 214,292 
Loans, advances and finance leases 
 190,330 
155,902 
- 
 346,232 
Financial assets at fair value through profit or loss 
(FVTPL)* 
1,883,949 
 415,978 
- 
 2,299,927 
Financial assets at fair value through other 
comprehensive income (FVOCI)* 
 
128,515 
 
557 
 
- 
 
129,072 
Investments in associates* 
54,533 
379,779 
- 
434,312 
Assets of disposal groups classified as held for sale* 
 922,943 
- 
- 
 922,943 
 
———— 
———— 
———— 
———— 
Total Assets 
3,799,633 
964,120 
- 
4,763,753 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Payables and other credit balances 
382,325 
 126,080 
2,755 
511,160  
Other financial liabilities 
92,348 
- 
57,545 
149,893 
Borrowings 
994,214 
1,156,415 
245,092 
2,395,721 
Payables to unit holders* 
- 
- 
578,757 
578,757 
Liabilities included in disposal groups classified as 
held for sale* 
 386,534 
- 
- 
 386,534 
 
———— 
———— 
———— 
———— 
Total Liabilities and Equity 
1,855,491 
1,282,495 
884,149 
 4,022,065 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Net liquidity gap 
1,944,142 
 (318,375) 
(884,149) 
741,688 
 
———— 
———— 
———— 
———— 
 
 
 
 
 
Cumulative liquidity gap – 31 December 2020 
 1,944,142 
1,625,767 
741,688 
- 
 
———— 
———— 
———— 
———— 
 
The Group's contractual undiscounted repayment obligations on interest bearing financial liabilities are as 
follows: 
 
 
31 December 2021 
 
Less than 
12 Months 
1 - 5 
years 
More than 
5 years 
Total 
Borrowings  
942,783 
1,007,975 
203,528 
2,154,286 
Payables and other credit balances 
738,406 
49,373 
14,313 
802,092 
Other financial liabilities 
79,945 
77,223 
- 
157,168 
 
 
 
 
 
 
31 December 2020 
 
Less than 12 
Months 
1 - 5 years 
More than 5 
years 
Total 
Borrowings  
1,000,560 
1,313,263 
311,553 
2,625,376 
Payables and other credit balances 
382,325 
126,080 
2,755 
511,160 
Other financial liabilities 
88,688 
69,817 
- 
158,505 
 
 
 
 
 
 
 
 
 
153     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Market risk 
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes 
in market variables such as interest rates, foreign exchange rates and equity prices. The Group faces market risk 
due to positions that are exposed to interest rate, currency and equity price movements.  
 
The Group has significant exposure through one of its subsidiaries and one of its associates to a listed equity 
investment for which the book value of equity is lower than the listed price. In accordance with IFRS 13, the 
investment is fair valued at its listed price. As a listed equity, the price is subject to market fluctuations and is 
monitored in line with the Group’s risk management guidelines. 
 
The Board of Directors approves the investment guidelines to limit the Group's exposure to market risk. Within 
these guidelines the Group Assets and Liabilities Committee sets performance targets and allocates risk and 
capital enterprise wide and approves investment rules for each business or strategy. Group Risk Management 
monitors independently the level of market risk on a daily basis against the investment rules at each level of the 
company. Any issues or excessive exposures are resolved immediately and reported to the Group Assets and 
Liabilities Committee to determine if further action is required. Also, the Group Assets and Liabilities Committee 
decide whether any enterprise-wide hedging is required to mitigate any material Group wide exposures. 
 
Interest rate risk 
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair 
values of financial instruments. The following table demonstrates the sensitivity to a reasonable change in 
interest rates, with all other variables held constant, of the Group’s consolidated statement of profit or loss.  
 
31 December 2021 
Financial 
instrument 
Net 
exposure 
Effect on profit or 
loss for 0.75% 
increase in 
sensitivity 
Effect on profit 
or loss for 0.75% 
decrease in 
sensitivity 
Effect on 
other 
components 
of equity for 
0.75% 
increase in 
sensitivity 
Effect on other 
components of 
equity for 0.75% 
decrease in 
sensitivity 
 
 
 
 
 
 
Borrowings 
1,985,419 
(14,891) 
14,891 
- 
- 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
31 December 2020 
Financial 
instrument 
Net 
exposure 
Effect on profit or 
loss for 0.75% 
increase in 
sensitivity 
Effect on profit or 
loss for 0.75% 
decrease in 
sensitivity 
Effect on 
other 
components 
of equity for 
0.75% increase 
in sensitivity 
Effect on other 
components of 
equity for 0.75% 
decrease in 
sensitivity 
 
 
 
 
 
 
Borrowings 
2,395,701 
(17,743) 
17,743 
- 
- 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
The sensitivity of the consolidated statement of income is the effect of the assumed changes in interest rates on 
the finance cost for one year, based on the variable rate non-trading financial liabilities held at 31 December 
2021. There is no impact on the Group equity, other than the implied effect on profits. 
 
Foreign exchange risk 
 
Foreign exchange risk is the risk that the value of financial instruments will fluctuate due to changes in foreign 
exchange rates.  
 
The Group has exposure in foreign currencies as a result of its geographically diversified operations which is 
monitored by management in adherence with internal guidelines. 
 
The table below indicates the currencies to which the Group had significant exposure as at 31 December 2021. 
The analysis indicates the effect on profit of an assumed 5% change in the UAE Dirham value against other 
currencies from levels applicable at 31 December 2021, with all other variables held constant.  
 
154     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Foreign exchange risk (continued) 
 
31 December 2021 
Foreign currency 
Assets 
Liabilities 
Net 
exposure 
Effect on profit 
or loss for 5% 
increase in 
sensitivity 
Effect on profit 
or loss for 5% 
decrease in 
sensitivity 
 
 
 
 
 
 
Sterling  
419,259 
211,731 
207,528 
10,376 
(10,376) 
Singapore Dollar 
 
 
 
 
 
Egyptian Pound 
1,508 
185 
1,323 
66 
(66) 
Kuwait Dinar 
37 
8,290 
(8,253) 
(413) 
413 
Euro 
1,896 
284 
1,612 
81 
(81) 
 
———— 
———— 
———— 
———— 
———— 
 
422,700 
220,490 
202,209 
10,110 
(10,110) 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
31 December 2020 
Foreign currency 
Assets 
Liabilities 
Net 
exposure 
Effect on profit 
or loss for 5% 
increase in 
sensitivity 
Effect on profit 
or loss for 5% 
decrease in 
sensitivity 
 
 
 
 
 
 
Sterling 
277,304 
75,261 
202,043 
10,102 
(10,102) 
Singapore Dollar 
- 
- 
- 
- 
- 
Egyptian Pound 
76 
185 
(109) 
(5) 
5 
Kuwait Dinar 
1,004 
7,538 
(6,534) 
(327) 
327 
Euro 
1,183 
285 
898 
45 
(45) 
 
———— 
———— 
———— 
———— 
———— 
 
279,567 
83,269 
196,298 
9,815 
(9,815) 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
Price risk 
 
Price risk is the risk that the fair values of securities decrease as the result of changes in market values. The effect 
of price risk on the Group with all other variables held constant is as follows: 
 
31 December 2021 
Financial instrument 
Net 
exposure 
Effect on 
profit or 
loss for 5% 
increase in 
sensitivity 
Effect on 
profit or loss 
for 5% 
decrease in 
sensitivity 
Effect on other 
components of 
equity for 5% 
increase in 
sensitivity 
Effect on other 
components of 
equity for 5% 
decrease in 
sensitivity 
FVTPL 
 
 
 
 
 
Equity Investment 
2,337,253 
116,863 
(116,863) 
- 
- 
Fixed Income   
97,138 
4,856 
(4,856) 
- 
- 
Fund Investment 
655,833 
32,792 
(32,792) 
- 
- 
FVOCI 
 
 
 
 
 
Fund Investment 
23,366 
- 
- 
1,168 
(1,168) 
 
———— 
———— 
———— 
———— 
———— 
 
3,113,590 
154,511 
(154,511) 
1,168 
(1,168) 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
 
155     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Price risk (continued) 
 
31 December 2020 
Financial instrument 
Net 
exposure 
Effect on 
profit or 
loss for 5% 
increase in 
sensitivity 
Effect on 
profit or loss 
for 5% 
decrease in 
sensitivity 
Effect on other 
components of 
equity for 5% 
increase in 
sensitivity 
Effect on other 
components of 
equity for 5% 
decrease in 
sensitivity 
FVTPL 
 
 
 
 
 
Equity Investment 
1,722,777 
86,139 
(86,139) 
- 
- 
Fixed Income   
61,720 
3,086 
(3,086) 
- 
- 
Fund Investment 
 97,079 
 4,854 
 (4,854) 
- 
- 
FVOCI 
 
 
 
 
 
Equity Investment 
78,365 
- 
- 
3,918 
(3,918) 
 
———— 
———— 
———— 
———— 
———— 
 
 1,959,941 
 94,079 
(94,079)  
3,918 
(3,918) 
 
══════ 
══════ 
══════ 
══════ 
══════ 
 
Below table highlights the geographical allocation of investments: 
 
31 December 2021 
Assets 
UAE 
GCC 
MENA 
North 
America 
Europe 
Asia 
Total 
FVTPL 
 
 
 
 
 
 
 
Equity 
Investment 
2,335,017 
2,236 
- 
 
- 
- 
2,337,253 
Fixed Income   
94,810 
1,616 
- 
 
598 
- 
97,024 
Fund Investment 
159,388 
17,088 
- 
 
479,471 
- 
655,947 
 
 
 
 
 
 
 
 
FVOCI 
 
 
 
 
 
 
 
Fund Investment 
- 
- 
- 
 
23,366 
- 
23,366 
 
 
 
 
 
 
 
 
 
———— 
———— 
———— 
———— 
———— 
——— 
——— 
 
2,589,215 
20,940 
- 
 
503,435 
- 
3,113,590 
 
══════ 
══════ 
══════ 
══════ 
══════ 
════ 
═════ 
 
31 December 2020 
Assets 
UAE 
GCC 
MENA 
North 
America 
Europe 
Asia 
Total 
FVTPL 
 
 
 
 
 
 
 
Equity 
Investment 
1,722,777 
2,299 
- 
- 
- 
- 
1,725,076 
Fixed Income   
52,640 
7,759 
1,133 
- 
917 
404 
62,853 
Fund Investment 
 158,260 
17,034 
- 
31,618 
305,086 
- 
 511,998 
 
 
 
 
 
 
 
 
FVOCI 
 
 
 
 
 
 
 
Equity 
Investment 
78,365 
- 
- 
- 
- 
- 
78,365 
Fund Investment 
- 
- 
 
 
- 
- 
50,707 
- 
50,707 
 
———— 
———— 
———— 
———— 
———— 
——— 
——— 
 
 
 
 
 
 
 
 
 
2,012,042  
27,092 
1,133 
31,618 
356,710 
404 
 
2,428,999 
 
══════ 
══════ 
══════ 
══════ 
══════ 
════ 
═════ 
 
 
 
156     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
25. FINANCIAL RISK MANAGEMENT (continued) 
 
Operational risk 
 
Operational risk is the risk of loss resulting from systems failure, human error, fraud or external events. Authority 
is delegated by the Board of Directors to Group Management Committees to set the Group wide operational 
policies to manage the risk and control environment and meet the expectations of the Board of Directors and 
shareholders. 
 
Group Risk Management use a risk and control framework to identify, measure, manage and monitor risk 
throughout the Group and ensure adherence to Group wide policies. 
 
Capital risk management 
 
The primary objective of the Group's capital management is to ensure that the Group maintains a strong capital 
structure, in order to support its business and to maximise shareholders' return. 
 
The Group’s policy is to maintain a strong capital base well above the minimum requirements to maintain 
investor, creditor and market confidence and to sustain future development of the business. 
 
The Group considers its share capital, retained earnings and reserves as its capital and monitors the capital 
structure via the leverage ratio. The leverage ratio is monitored by both RCB and ALCO against internally set 
limits which have been approved by the Board 
 
The capital structure of the Group in terms of the gearing ratio is as shown below: 
 
 
31 December 
31 December 
 
2021 
2020 
 
 
 
Borrowings 
1,985,419 
2,395,701 
Payable to client 
9,701 
11,554 
Customer deposits 
20,501 
37,658 
Lease liabilities 
40,399 
 40,014 
Repurchase agreements 
41,562 
63,825 
Payable against acquisition 
226,893 
122,985 
FVTPL liabilities 
1,610 
1,859 
Other financial liabilities 
148,267 
149,983 
 
———— 
———— 
Total debt 
2,474,352 
2,823,579 
 
 
 
Total equity 
1,846,062 
 2,026,177 
 
 
 
Debt to equity ratio 
1.34 
1.39 
 
══════ 
══════ 
 
 
 
 
157     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
 
26. COMMITMENTS AND CONTINGENT LIABILITIES 
 
 
31 December 
2021 
31 December  
2020 
 
 
 
Contingent liabilities 
10,375 
44,967 
 
════ 
════ 
 
As at 31 December 2021, the Group has capital commitments of 141,201 (2020: 137,883) with respect to the project 
development. 
 
27. CLIENTS’ FUNDS UNDER MANAGEMENT 
 
A subsidiary of the Group is licensed as a financial services company regulated by the Central Bank of the United 
Arab Emirates. As at 31 December 2021, clients’ assets amounting to 7.8 billion (31 December 2020: 7.3 billion) were 
managed in a fiduciary capacity, without risk or recourse to the Group. These funds are off balance sheet items 
and do not constitute part of the Group’s assets.  
 
28. INTEREST IN MATERIAL SUBSIDIAIRES 
 
Summarized financial information of material subsidiaries with NCI is as follows: 
 
 
SHUAA  
Capital 
Group 
Spadille  
Group 
Squadron  
Group 
Summarized statement of financial position 
 
 
 
Assets 
3,141,665 
310,306 
418,524 
Liabilities 
(1,972,930) 
(7,279) 
(40,094) 
 
———— 
———— 
———— 
Net assets 
1,168,735 
303,027 
378,430 
 
══════ 
═════ 
═════ 
Summarized statement of comprehensive income 
 
 
 
Revenue 
196,439 
13,876 
39,532 
 
════ 
════ 
════ 
Profit/(loss) for the year 
51,699 
(4,431) 
2,893 
Other comprehensive (loss) for the year 
(13,107) 
- 
- 
 
——— 
——— 
——— 
Total comprehensive income/(loss) for the year 
38,592 
(4,431) 
2,893 
 
════ 
════ 
════ 
 
 
 
 
NCI - 1 January 2021 
107,542 
47,630 
250,047 
NCI movement in 2021 
(11,005) 
(5,611) 
3,502 
 
———— 
———— 
———— 
NCI - 31 December 2021 
96,537 
42,019 
253,549 
 
═════ 
═════ 
═════ 
Summarised cash flows  
 
 
 
Cash flows generated from / (used in) from operating activities 
287,349 
(4,174) 
10,393 
Cash flows generated from / (used in) investing activities 
660,407 
(41) 
(1,000) 
Cash flows used in financing activities 
(933,693) 
(783) 
(3,108) 
 
——— 
——— 
——— 
Net increase / (decrease) in cash and cash equivalents 
14,062 
(4,997) 
6,285 
 
════ 
════ 
════ 
158     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
29. DISCONTINUED OPERATIONS 
 
 
31 December 
31 December 
29.1 Assets of a disposal group classified as held for sale  
2021 
2020 
 
 
 
Assets held for sale (*) 
5,930 
214,911 
Assets of a disposal group classified as held for sale 
- 
708,032 
 
———— 
———— 
 
5,930 
922,943 
 
═════ 
═════ 
 
 
 
29.2 Liabilities of a disposal group classified as held for sale  
- 
386,534 
 
═════ 
═════ 
 
As at 31 December 2020, the Group exited 42.6% of its stake in Thalassa Investment LP without loss of control and 
resulting impact was recognized in equity.  
 
Details of financial results and the cash flows of the discontinued operations are provided below: 
 
 
31 December 
31 December 
 
2021 
2020 
29.3 Profit from discontinued operations  
 
 
 
 
 
Total operating income 
162,853 
3,256 
Total operating expenses 
(154,603) 
(5,984) 
 
——— 
——— 
Profit/(loss) for the period from discontinued operations  
8,250 
(2,728) 
 
════ 
════ 
 
 
 
29.4 Cash flows from discontinued operations 
 
 
 
 
 
Cash flows generated from operating activities 
(8,016) 
8,243 
Cash flows used in investing activities 
309,138 
(224) 
Cash flows used in financing activities 
- 
(7,710) 
 
——— 
——— 
Net cash flow generated from discontinued operations  
301,122 
309 
 
═════ 
═════ 
 
* Includes value of a plot of land received as distribution in kind from an associate amounting to Nil (31 
December 2020: 2,229), investment in associates of Nil and land amounting to 5,930 (31 December 2020: 
investment in associates of 208,594 and land amounting to 4,088). The Group intends to sell the assets in the 
near term. 
 
 
159     SHUAA Annual Report 2021

SHUAA CAPITAL PSC 
Notes to consolidated financial statements 
for the year ended 31 December 2021 (continued) 
 
(Currency - Thousands of U.A.E. Dirhams) 
 
 
 
30. LOSS OF CONTROL IN SUBSIDIARIES 
 
Details of assets, liabilities, financial performance and cash flows of subsidiaries over which control was lost 
during 2021 are as follows: 
 
 
Thalassa 
 
 
Assets 
765,226 
 
 
Net assets  
274,251 
 
 
Gain on disposal of subsidiary 
 
Consideration received 
122,295 
Net assets disposed of 
142,888 
 
———— 
Loss on disposal 
(20,593) 
 
══════ 
Net cash flows on disposal of subsidiary  
 
Consideration received in cash and cash equivalents 
51,076 
Less: Cash and cash equivalent balances disposed 
(28,366) 
 
———— 
Net cash inflow 
22,710 
 
══════ 
 
31. SUBSEQUENT EVENTS  
 
Subsequent to the year end, one of the Company’s subsidiaries received notice of a significant contract 
termination. This is expected to lead to an impairment of the carrying value of acquired Intangibles which will 
reduce the consolidated profit by around AED95m. Further, the associated Goodwill of AED 255m recognised by 
the Group against its investment in the subsidiary will be reviewed for potential impairment during the period 
ending 31 March 2022. 
 
Subsequent to the year end, an associate of the Group entered into a transaction involving the exit of a historic 
portfolio of  illiquid investments. The majority of the impact on exiting of these assets has been reflected in the 
Group’s carrying amount of the investment in associate as well as impairment of certain loans during the year 
ended 31 December 2021 (notes 8 & 14) whereas the remaining impact is a loss of approximately AED 32m in the 
consolidated financial statements for the period ending 31 March 2022. This transaction will lead to an increase 
in the Group’s shareholding in the associate thereby granting the Group control over the associate. This will 
result in the associate being recognised as a subsidiary without any recognition of goodwill or a bargain gain. 
The subsidiary will be consolidated in the Group’s financial statements during the period ending 31 March 2022. 
 
 
32. COMPARATIVES FIGURES 
 
For the purpose of better presentation and understanding for the users, the Group represented fee and 
commission income (2020: 231,848), fee and commission expense (2020: (12,737)), advisory income (2020: 29,541), 
trading income (2020: 4,095) and other operating income (2020: 270,890) as a single line item under operating 
income on the face of the consolidated profit or loss statement. 
 
160     SHUAA Annual Report 2021

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