Shuaa Capital Offloads 33% Saudi Hospitality Stake for $137 Million

Shuaa Capital, a prominent investment bank listed in Dubai, has divested its 33% stake in a Saudi Arabia-based hospitality asset portfolio as part of a strategic realignment aimed at refining its investment focus amidst its ongoing debt restructuring process. The portfolio, managed by Shuaa Capital Saudi Arabia, was sold to Sumou Holding, a Saudi real estate investor, for a sum of 515 million riyals ($137 million). This transaction has not only helped the firm reduce liabilities but also augmented its balance sheet by 19.6 million dirhams ($5.3 million). The divested assets include three hospitality properties located in Riyadh, Jeddah, and Dammam. This move dovetails with Shuaa Capital’s broader strategy to optimize asset allocation and streamline operations, following recent capital restructuring that involved the approval of $116 million in mandatory convertible bonds. In parallel developments, Ahmed AlAhmadi, the managing director of Shuaa's board, recently stepped down after playing a pivotal role in the company's capital optimization efforts.