ABU DHABI (Reuters) - United Arab Emirates’ 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 watchdog said on Sunday.
These are the first public comments by a regulator in the UAE about possible scrutiny of Abraaj as concerns grow on the financial state of the firm, the funds of which 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.
“Once we get tangible evidence, we can move forward in coordination with local and federal governments.”
In an email to Reuters Abraaj said it is not in a position to comment on discussions that the DFSA may be having with other parties, but the firm continues to engage actively with the Dubai financial regulator.
“The regulator is fully apprised of key developments taking place at the firm,” it said.
DFSA, which regulates Abraaj, has made no comment on the private equity firm, which is grappling with allegations by some investors that it misused their money.
Abraaj has denied any wrongdoing.
Reporting by Stanley Carvalho; Writing by Saeed Azhar; Editing by David Goodman