Final Nail in Abraaj Coffin

The Abraaj Group has been put through the ringer in past months. Controversy followed controversy, and now, a Dubai government body might have just hammered the final nail in Abraaj’s coffin and put an end to Abraaj business. 

The Dubai Financial Services Authority has stopped Abraaj Capital from taking on new business or moving money to Abraaj Investment Management, its related entity, as part of an investigation into the group. DFSA is Dubai’s financial services regulator, and this is the first time they have publicly disclosed that they are investigating the private equity firm, AMEinfo reported. 

“Given the onset of financial difficulties of the wider Abraaj Group, the DFSA has been closely monitoring the activities of its regulated entity ACL,” Dubai Financial Services Authority said in a statement on Thursday. 

According to Reuters, Abraaj Capital is the only entity in the Abraaj Group regulated by DFSA, which issued its statement after two individuals from Deloitte were appointed as joint provisional liquidators by the Dubai International Financial Center Courts to oversee the winding up of the private equity group. It seems Abraaj isn’t going to be able to dig itself out of this problem, as the company has already been trying to liquidate its assets. 

With the DFSA putting a damper on their activities, Abraaj is going to have trouble paying back its creditors, such as in the infamous bounced cheque case(s).

DFSA, which has the power to fine or ban individuals or companies from working in financial services within the DIFC, made no reference to potential penalties Abraaj might face.

Back in June, Abraaj founder Arif Naqvi faced criminal charges following an instance of a bounced cheque worth $48 million.