Dubai Watchdog Stiffens Oversight After Private Equity Fiascoes - Bloomberg
Dubai’s financial regulator has been stepping up scrutiny of firms to avoid a repeat of two high-profile failures in the emirate’s private equity industry, Abraaj and Al Masah Capital Ltd.
“Through our supervision work, we look to probe firms more than perhaps we did, say, less than 10 years ago,” said Peter Smith, managing director and head of strategy, policy and risk at the Dubai Financial Services Authority.
The private equity industry in the Middle East’s business and trade hub has been rocked by the collapse of Abraaj in 2018 and the arrest of several of its executives amid allegations that it misused investor funds. Al Masah was placed in liquidation earlier this year after it was fined by the DFSA for allegedly misleading investors about fees and its founder banned from working in the Dubai International Financial Center.
In both cases, the companies were conducting business from offices in Dubai’s financial center but had funds registered in the Cayman Islands.
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