April 10 (Bloomberg) -- Shuaa Capital PSC Chief Executive Officer Michael Philipp stepped down, six months after the former Credit Suisse Group AG board member joined the Dubai investment bank to restructure its business.
Colin Macdonald, previously the group managing director and regional head of the Middle East at ABN Amro, will replace Philipp, Shuaa said in an e-mailed statement today. Macdonald will be the company’s fourth CEO in three years. Maktoum Hasher Al Maktoum was also appointed executive chairman.
Shuaa has moved away from retail brokerage and scaled back research operations after markets in its home base declined and losses mounted. The company said in February it planned to cut 55 jobs as part of a reorganization and that it was closing operations in Jordan and Egypt and reducing its presence in Abu Dhabi and Riyadh.
Shuaa is concentrating on providing sales and trading to institutions, family offices and high-net worth individuals, it said in February. The company last year had its ratings cut one level to Ba3 at Moody’s Investors Service, citing losses and management “instability.”
Middle East markets were hurt in 2011 by uprisings that ousted leaders in Tunisia, Egypt and Libya and fears Europe won’t be able to contain its debt crisis. Fees earned by banks in the region fell 42 percent to $320 million in the first nine months of 2011 from $551 million during the same period in 2010, according to New York-based research firm Freeman & Co.
The investment bank returned to profit last year after posting losses in the preceding three years. The shares, which tumbled 56 percent last year, have surged 44 percent this year. They lost 2.8 percent to 79 fils in Dubai today, the lowest close since Feb. 27.
To contact the reporter on this story: Zahra Hankir in Dubai at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org