DUBAI: Dubai’s financial regulator said it upheld $ 135.6 million fine on collapsed private equity firm Abraaj Group’s founder and former Chief Executive Arif Naqvi ‘for his serious failings’ in respect of company.

In a statement, Dubai Financial Services Authority (DFSA) said that Financial Markets Tribunal (FMT) issued its decision on December 12, 2022 which upheld DFSA’s findings and rejected Naqvi’s FMT reference. “DFSA’s findings as set out in its decision notice August 2021 are final,” according to statement.

Dubai-based Abraaj was largest buyout fund in Middle East and North Africa until it collapsed in 2018 after investors raised concerns about management of its $ 1 billion healthcare fund. DFSA on January 27, 2022 imposed ruling which banned Naqvi from emirate’s financial centre and included a $ 135 million fine.

Naqvi, who was regular attendee of World Economic Forum in Davos, disputed findings and presented his case for review by FMT, an independent appeal tribunal. Naqvi could not immediately be reached for comment, according to Reuters. DFSA said at time that financial penalty will be stayed pending decision of FMT, while ban on activities at Dubai International Financial Centre (DIFC) will remain enforced.

Ian Johnston, Chief Executive of DFSA said Mr Naqvi was face of largest private equity firm in region and face of impact investing. “Mr Naqvi was in position of trust and influence and investors relied on him to ensure that Abraaj Group’s affairs were managed effectively and responsibly. While Mr Naqvi preached about transparency and responsibility, he did not apply those principles in practice,” he said.

“DFSA’s action against him, which was upheld by FMT is important in recognising nature, scale and seriousness of Mr Naqvi’s misconduct which ultimately led to collapse of Abraaj Group,” Johnston said.

Abraaj Group was founded in 2002 and managed about $ 14 billion of assets at its peak. It was Middle East’s biggest private equity firm with interests across Africa, Asia, Latin America and Middle East.

Published in The Daily National Courier, January, 04 2023

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