Shuaa Capital loses appeal in lawsuit against former executives

• UAE court upholds first-instance ruling
• Alleged misconduct and violations
• Damages claim dismissed

Shuaa Capital, an investment banking and asset management company listed on the Dubai Financial Market, said a UAE Court of Appeal has upheld a first-instance ruling dismissing its damages claim against certain former executive directors. 

The company told the market in May 2025 that it had filed a legal claim seeking compensation for losses of approximately AED260 million ($71 million) it says were caused by alleged misconduct and violations by former executives, which Shuaa claimed contributed to financial losses.

In a filing to the exchange late on Friday, Shuaa said it is “reviewing and evaluating all available legal options” to protect the company’s rights and shareholders’ interests.

Shuaa did not disclose when the ruling from the court of first instance was issued or when it filed the appeal. It also did not disclose the total cost incurred for this case, or the financial impact of the loss of the claim.

In separate cases, Shuaa Capital and its subsidiaries are facing claims from external investors alleging that cash was improperly transferred between funds, according to court filings in a case being heard in UAE, UK and Cayman Islands courts.

It is alleged that a private equity fund tied to Shuaa Capital siphoned off more than AED1 billion ($272 million) from its asset value through what the investors describe as “conflicted deals,” according to court documents seen by AGBI.

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• Shuaa Capital sues former executives for $70m over losses

In another dispute last year, a former executive sued Shuaa for AED22 million in alleged unpaid dues. Shuaa called the claim “baseless” in a filing and said it would have no financial impact. A Dubai court dismissed the case in February. 

Shares in Shuaa closed down about 1.2 percent at 0.248 dirhams on Friday, according to the exchange’s trading summary. 

Shuaa Capital was founded in 1979 and was once among Dubai’s most prominent investment banks but has undergone repeated restructurings since the 2008 financial crisis.

Its shares have fallen about 97 per cent from their pre-crisis peak.