Dubai’s financial services regulator has stopped Abraaj Capital from taking on new business or moving money to Abraaj Investment Management (AIML), its related entity, as part of an investigation into the group, Reuters reported. “Given the onset of financial difficulties of the wider Abraaj Group, the DFSA has been closely monitoring the activities of its regulated entity ACL,” Dubai Financial Services Authority (DFSA) said yesterday. It is the first time that DFSA has said publicly that it is investigating Abraaj, which faces allegations by some investors of misusing their money in a $1 billion healthcare fund. Abraaj has denied any wrongdoing, but the allegations triggered a solvency crisis at the Middle East and Africa’s largest buyout fund, and threatened to dent Dubai’s reputation.
