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SHUAA Capital Leads Consortium to Buy Stanford Marine’s $308Mn in Debts

SHUAA Capital has bought 1.13 billion dirhams of debt held by Stanford Marine Group (SMG) as part of its restructuring. (Asharq Al-Awsat)
SHUAA Capital has bought 1.13 billion dirhams of debt held by Stanford Marine Group (SMG) as part of its restructuring. (Asharq Al-Awsat)
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SHUAA Capital Leads Consortium to Buy Stanford Marine’s $308Mn in Debts

SHUAA Capital has bought 1.13 billion dirhams of debt held by Stanford Marine Group (SMG) as part of its restructuring. (Asharq Al-Awsat)
SHUAA Capital has bought 1.13 billion dirhams of debt held by Stanford Marine Group (SMG) as part of its restructuring. (Asharq Al-Awsat)

A consortium led by the United Arab Emirates financial firm, SHUAA Capital, has bought 1.13 billion dirhams ($308 million) of debt held by Stanford Marine Group (SMG) as part of its restructuring, the companies said on Sunday.

The plan has helped save more than 1,800 jobs and annual exports of close to $20 million worth of UAE-manufactured vessels at the ultramodern Grandweld shipyard’s facility in Dubai Maritime City.

The debt buyout has supported banks in exiting a distressed debt situation with a cash recovery.

The Dubai-based Stanford Marine Group (SMG) is a diversified offshore services company in the Middle East, with a focus on chartering, building and repairing offshore support vessels for the oil and gas industry.

The firm’s debt problems stemmed from a $325 million Islamic loan agreed in 2015 provided by a group of banks including Noor Bank - which has since been acquired by Dubai Islamic Bank - Barwa Bank, Ajman Bank, United Arab Bank, Qatar Islamic Bank and First Gulf Bank - now part of First Abu Dhabi Bank.

“Despite the COVID-19 lockdowns last year, we continued to lead discussions with the SMG lenders’ advisors and worked collaboratively to reflect the changing needs of the consortium while finding a viable solution that worked in the best interest of all parties involved,” said CEO of SHUAA Capital Jassim Alseddiqi.

“We are proud to have achieved so much with this deal – from supporting banks to exit a distressed debt situation with a cash recovery, to retaining jobs of employees and sailors and sustaining their livelihoods, and finally ensuring continuity of SMG business and its contribution to the local economy.”

“SHUAA Capital has managed to pull off a complex restructuring program effectively giving the company a new lease of life,” said Elias Nassif, chief executive of SMG.

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US Tariff Exemptions Boost iPhone Sales in Saudi Arabia

Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
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US Tariff Exemptions Boost iPhone Sales in Saudi Arabia

Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)
Customers at a smartphone store in Riyadh. (Asharq Al-Awsat)

Smartphone sales in Saudi Arabia have surged in recent weeks, driven largely by temporary US tariff exemptions on imported electronics, including Apple iPhones, manufactured partially in China and India.

The decision, introduced by the administration of President Donald Trump, has led to increased consumer demand, particularly for high-end models, amid concerns that tariffs could be reinstated soon.

Retailers across the Kingdom have reported higher footfall and an uptick in purchases, particularly of the iPhone 15 and iPhone 16 Pro models. This shift comes at a time when financing options and promotional offers are flooding the market. Consumers are accelerating their buying decisions, seeking to avoid future price increases that could result from renewed trade restrictions.

According to Canalys, Apple captured 23 percent of global smartphone market share in the last quarter of 2024, with the iPhone 15 leading global sales.

In Saudi Arabia, demand for smartphones is projected to remain strong, with market size expected to reach $2.3 billion (SAR 8.6 billion) by 2025, supported by sustained interest in premium devices and a growing tech-savvy population.

Retailers in Riyadh, one of the country’s key commercial hubs, have reported robust activity. Ibrahim Al-Mutairi, a smartphone dealer, told Asharq Al-Awsat that iPhone sales, especially for previous-generation models, have been climbing steadily.

He noted anticipation is already building for the release of the next iPhone model, expected in September.

Consumers, too, are responding quickly. “The online discounts are better than usual, and I wanted to buy now before any price increase,” said one customer. Zero-interest installment plans offered by many retailers have further encouraged purchases, expanding access across a wider customer base.

Economist Dr. Salem Baajajah of King Abdulaziz University told Asharq Al-Awsat that the tariff exemptions have contributed directly to stronger sales. He noted that while the decision is temporary, it has helped stabilize pricing in the short term.

Baajajah also emphasized India’s rising prominence in the global smartphone supply chain.

Apple has been gradually shifting a portion of its production to India as part of a broader strategy to diversify manufacturing beyond China. Foxconn, one of Apple’s key suppliers, assembled iPhones worth $22 billion in India during the last fiscal year, representing about 10 percent of Apple’s global output.

Despite the temporary nature of the tariff relief, the broader impact on the Saudi market has been significant.

Dr. Abdullah Al-Jassar, a member of the Saudi Economic Association, described the trend as an example of rational consumer behavior.

“People are anticipating future price increases, and they’re acting accordingly,” he told Asharq Al-Awsat, adding that Saudi consumers are demonstrating growing economic awareness.

With more than 91 percent of the population using smartphones, Saudi Arabia continues to represent a major market for global tech companies. Al-Jassar emphasized that diversifying supply sources and promoting local manufacturing could help shield the market from external trade shocks.