Dubai regulator probes Abraaj Capital as investigation continues

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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.

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.