Dubai regulator says Saad unit licence may be withdrawn

Unit's affliate, LA Investments, already placed into liquidation in UK by authorities.
Dubai regulator says Saad unit licence may be withdrawn
By Frederik Richter
Tue 29 Sep 2009 09:07 PM

Liquidators intend to withdraw the licence in Dubai for a unit of Saudi Arabia's troubled Saad Group, the regulator Dubai Financial Services Authority (DFSA) said on Tuesday.Liquidators of LA Investments have told DFSA that they planned to withdraw the licence for the company's affiliate, Saad Financial Advisory Services Ltd, DFSA said in a statement.

"The liquidators have advised the DFSA that they intend to withdraw Saad (Financial Advisory Services)'s DFSA licence," it said, adding that the accountancy firm Grant Thornton was acting as liquidators.

DFSA said in a statement that LA Investments had been placed into liquiditation in Britain. The regulator said the Saad unit under its licence was not entitled to hold client money and that other entities of Saad Group were its only clients.

A London-based spokesman for Saad Group declined to comment.

Saad and another privately owned Saudi group, Ahmad Hamad Algosaibi & Bros, are embroiled in a legal battle in the United States after defaulting on debts, with some bankers warning the total cost of writedowns my hit $22 billion and affect around 120 banks.

Several banks have filed court cases over the fall-out of the debt restructuring, and BNP Paribas and Mashreqbank are amongst numerous regional and international banks with exposures. (Reuters)

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.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.