Abu Dhabi Financial Group (ADFG) and Dubai’s Al-Mal Capital and Arqaam Capital are thought to be among the bidders for Dubai-based Shuaa Capital, according to UK news agency Reuters.

State-owned investment group Dubai Holding is selling its 48.4 per cent stake in the financial services company in order to meet debt repayments under a restructuring agreement.

Shuaa reported revenues of AED46m ($12.5m) in the first quarter of 2016, and made a AED28m loss. This was mainly due to increased provisioning against poorly performing small and medium-sized enterprise (SME) loans.

Shuaa’s shares were worth 65 fils each at the end of trading on 31 May. This values the company at AED692m.

Local bank Emirates NBD is arranging the sale.

Dubai Holdings also plans to divest from Egypt’s EFG Hermes and Oman’s Bank Muscat in 2016.

Dubai Group completed the restructuring of its $10bn debt in January 2014, giving it time to sell off assets to repay creditors.