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SCA to investigate Abraaj for local investor impact

The UAE’s Securities and Commodities Authority (SCA) is investigating whether any local investors are affected due to the current financial problems being faced by the private equity firm Abraaj, according to a top executive.
Dubai-based Abraaj is currently facing allegations that investment funds were misused, specially that it commingled about $95 million after it faced cash shortages

“We are investigating this and we are in contact with DIFC (Dubai International Financial Centre) to see where the national investor is affected. Once we have tangible evidence, we can move forward with this in coordination with Federal and local governments,” said Obaid Al Za’abi, chief executive of the UAE’s Securities & Commodities Authority while speaking to reporters in Abu Dhabi on Sunday night.
We are investigating this and we are in contact with [the] DIFC [Dubai International Financial Centre] to see where the national investor is affected. Once we have tangible evidence, we can move forward with this in coordination with Federal and local governments.”

– Obaid Al Za’abi (left) | SCA chief executive

“We have already sent a letter to DIFC on this,” he said without elaborating further. This was the first public statement by a UAE regulator on this issue.
Dubai Financial Services Authority (DFSA), which is the financial regulator of DIFC said in a statement to Gulf News: “The DFSA is aware of various matters involving Abraaj Group, which has a regulated entity in the DIFC, and relevant matters are under our attention. The DFSA cannot comment further on circumstances of individual firms.”

Abraaj, on the other hand said that they are not in a position to comment on discussions that the DFSA may be having with other parties.
“Abraaj continues to actively engage with the DFSA and remains in close dialogue with the regulator. The regulator is fully apprised of key developments taking place at the firm,” the company told Gulf News.

Source: Gulf News

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