• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

Abraaj collapse pushes Dubai regulator to strengthen oversight

Abraaj collapse pushes Dubai regulator to strengthen oversight
  • Pedro Gonçalves
  • @PeterHSG
  • 04 March 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Dubai's financial regulator has pledged to tighten controls in the wake of the collapse of Abraaj Group last year, once one of the most influential emerging-market investors with nearly $14bn of assets under management. 

The Dubai Financial Services Authority (DFSA), which regulates entities operating out of the Dubai International Financial Centre (DIFC), will "be reviewing our risk-based approach to supervision to ensure that it properly captures some of the features of the particular case", DFSA chief executive Bryan Stirewalt said in his preface to the DFSA's 2019-20 business plan, released on Sunday.

Related articles

  • Dubai regulator says it learnt its lessons from Abraaj collapse
  • Dubai regulator investigation targets Abraaj senior management
  • Dubai regulator slaps Abraaj with record $315m fine
  • Morgan Gatsby's licence suspended by regulator in Dubai

"In addition, we will examine whether our regime addresses correctly the situation where firms locate legal entities providing services to each other in different locations, which can complicate supervision."

[The DFSA] will be reviewing our risk-based approach to supervision to ensure that it properly captures some of the features of the particular case"

Abraaj collapsed last year, months after investors began an investigation into mismanagement of money in its healthcare fund.

While the DFSA licensed Abraaj Capital Limited (ACL) to carry on regulated activities within the Dubai International Financial Centre (DIFC), it did not regulate Abraaj Holdings, Abraaj Investment Management Limited or license the firms private equity firms, which were all registered in the Cayman Islands.

In August 2018, the DFSA moved to stop Abraaj Capital Limited from taking on new business or moving money while investigations into the group were ongoing.

"Given the importance of the Abraaj Group as a large private equity group in the Middle East and its connections with Dubai - if the DFSA concludes, following our investigations, that there are lessons to be learned, we will take steps to strengthen our supervisory oversight going forward," Stirewalt said.

The DIFC banking sector comprises 33 commercial banks located in the DIFC, with total assets reaching $155bn as of the end of 4Q2018. The DIFC is also home to 20 reinsurers and 60 insurance intermediaries.

The collapse of Abraaj "will influence our thinking on corporate governance, on the allocation of responsibilities among the senior management of firms, and on the best way to assign responsibility for compliance within regulated firms," Stirewalt added.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • Dubai
  • Dubai Financial Services Authority
  • Dubai International Financial Centre
  • DFSA
  • Abraaj
  • Cayman Islands
  • Abraaj Group
  • Middle East
  • DIFC

More on Regulation

FCA warns pandemic puts 4,000 financial firms at risk of failing

  • Regulation
  • 07 January 2021
FCA slaps Charles Schwab UK with £9m fine over compliance failures

  • Regulation
  • 21 December 2020
FATF removes Bahamas from 'increased monitoring' list

  • Regulation
  • 21 December 2020
FCA orders Blue Gate Capital to pay Connaught investors £200k

  • Regulation
  • 18 December 2020
Feature: How Labuan IBFC stayed on track throughout the pandemic

  • Regulation
  • 18 December 2020
Back to Top

Most read

FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
Australian expats warned of tax bills on return post-pandemic
Australian expats warned of tax bills on return post-pandemic
DeVere launches equity fund with Columbia Threadneedle Investments
DeVere launches equity fund with Columbia Threadneedle Investments
Guardian WM is reborn as Skybound WM
Guardian WM is reborn as Skybound WM
People moves: IQ-EQ, AllianceBernstein, Beaufort Group, BCS Global Markets, Tyndall IM, TMF Group
People moves: IQ-EQ, AllianceBernstein, Beaufort Group, BCS Global Markets, Tyndall IM, TMF Group
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading