SCA and DFSA examine investor impact as audit of Abraaj exposes flaws

abu dhabi — UAEs’ top securities regulator is working with the Dubai Financial Services Authority (DFSA) to ascertain whether local investors have been affected by the financial woes of private equity firm Abraaj.

The regulator’s first public statement about possible scrutiny of Abraaj comes as concerns grow over the financial state of the Dubaibased firm, whose funds have also attracted money from UAE institutions and family offices.

“We are coordinating with DFSA to see where national investors are affected,” Obaid al Zaabi, chief executive of the UAE’s Securities & Commodities Authority, told reporters late on Sunday.

“Once we get tangible evidence, we can move forward in coordination with local and federal governments.”

The Middle East and North Africa’s largest private equity group, Abraaj has been grappling with the fallout from a row with four of its investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), over how it used their money in a $1 billion healthcare fund.

Abraaj, which has denied any wrongdoing, declined to comment on discussions that the DFSA may be having with other parties, but said in an email to Reuters that it continues to actively engage with the Dubai financial regulator.

“The regulator is fully apprised of key developments taking place at the firm,” it said.

DFSA said in an email on Monday: “DFSA is aware of various matters involving Abraaj Group, which has a regulated entity in the DIFC (Dubai International Financial Centre), and relevant matters are under our attention.”

It said it cannot comment further on circumstances of individual firms.