Dubai's financial regulator said Tuesday it had imposed a record fine of nearly $315 million on two affiliates of the collapsed Abraaj equity group for unauthorised activities and misusing investors' funds. The Dubai Financial Services Authority (DFSA) said in a statement that it fined Abraaj Investment Management $299.3 million and Abraaj Capital Limited $15.3 million.
The two companies are affiliates of the Abraaj Group that once was the leading private equity firm in the Middle East with nearly $14 billion of assets under management. The group entered into liquidation over a year ago following allegations of misuse of funds that forced investors to recover their money. Some key investors in an Abraaj $1 billion healthcare fund were The Bill and Melinda Gates Foundation and a World Bank affiliate.