Dubai's financial services regulator has announced that it has taken action to stop ailing Abraaj Capital from moving money to its parent Abraaj Investment Management Limited (AIML).
Dubai Financial Services Authority (DFSA) said in a statement that the move aims to safeguard the interests of investors and the Dubai International Financial Centre.
It also said it received notice of an order issued by the DIFC Courts appointing the two individuals from Deloitte as joint provisional liquidators to oversee the winding up of Abraaj Capital.
In the statement, DFSA said that it has been monitoring the situation regarding Abraaj's recent troubles and has taken regulatory actions to prevent AIML or any affiliates from removing funds from Abraaj Capital and prohibiting it from dealing with new clients.
"Given such actions and the current matters surrounding the Abraaj Group, the DFSA continues to monitor the limited financial services activities currently being undertaken by Abraaj Capital," it said.
It added: "DFSA has for some time been investigating a range of matters within Abraaj Group. However, in line with usual practice the DFSA will not comment on the matters under investigation.
"The DFSA will continue to take all necessary actions within its remit to protect the interests of investors and the DIFC."
Abraaj Capital is a subsidiary of AIML and ultimately Abraaj Holdings Limited.
Founded in 2002 by Arif Naqvi, Abraaj had nearly $14 billion of assets under management before being granted a court-supervised restructuring in the Cayman Islands, where it is registered, following allegations of the misuse of funds.
Court-appointed liquidators Deloitte and PricewaterhouseCoopers are trying to settle more than $1 billion of debt owed by Abraaj, once one of the most influential emerging-market investors until its dramatic collapse this year.
At its peak, Abraaj owned stakes in companies in most of the major emerging markets outside of China. The collapse of Abraaj, once one of the developing world’s most influential investors, came months after some of its stakeholders began an investigation into mismanagement of money in its healthcare fund.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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