Dubai regulator probes Abraaj Capital as investigation continues

Dubai’s financial services regulator has moved to bar Abraaj Capital from taking on new business or moving money to Abraaj Investment Management (AIML), its related entity, while an investigation into the group is ongoing.

The move represents the first time the Dubai Financial Services Authority (DFSA) has publicly acknowledged it is investigating Abraaj, which faces allegations by some investors of misusing their money in a $1bn healthcare fund.

The DFSA said in a statement issued earlier today: “Given the onset of financial difficulties of the wider Abraaj Group, the DFSA has been closely monitoring the activities of its regulated entity Abraaj Capital.”

Abraaj Group, which managed $14bn at its peak, took the unusual step of filing for provisional liquidation in June, and is now undergoing a court-supervised restructuring in the Cayman Islands. The measures are a response to allegations by some investors earlier this year that Abraaj misused moneys invested in a $1bn healthcare fund.

The investigation continues.

Christopher Copper-Ind
Christopher Copper-Ind is Publisher and Editor of International Investment. His previous publishing experience focused largely on the Middle East and emerging markets, and he was Editorial Director of The Business Year, based in Istanbul, for three years before moving back to London in 2017. He is the author of How to Negotiate, to be published by Macmillan in 2019.

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