By: Mahmoud Gamal
Dubai – Mubasher: Shuaa Capital told Mubasher on Wednesday that its exposure to the ailing private equity firm Abraaj Group has not affected its operations.
In July, Shuaa revealed that it co-owns an $8.83 million or a 3.6% stake in The Abraaj Buyout Fund II L.P with its clients.
The number of Dubai- and Abu Dhabi-listed companies that are exposed to the embattled private equity company has reached 14, with total exposures of AED 2.46 billion, according to a survey conducted by Mubasher.
Once one of the developing world’s influential investorS, Abraaj has been facing allegations of money misuse in its $1 billion health care fund. In June, the Dubai-based investment firm filed for bankruptcy. It is reportedly undergoing a mega-restructuring plan.
A host of companies, particularly those listed in the UAE, have disclosed their exposure to Abraaj as per a circular issued by the Securities and Commodities Authority (SCA). Such companies included Air Arabia’s AED 1.2 billion exposure, Al Qudra Investments, and Commercial Bank of Dubai (CBD).
Analysts previously told Mubasher that companies’ disclosures of the level of their exposure to Abraaj would boost investor confidence in the markets.
Translated by: Muhammad Khalid
