UAE firms disclosures of Abraaj exposure to restore investor confidence

Dubai: The announcement of the listed companies on the twin UAE stock markets to their exposure to the ailing private equity firm Abraaj Group will help regain investor confidence in the local equity markets, analysts told Mubasher.

Around 22 listed firms have denied their exposure to The Abraaj Group, which recently filed for liquidation after money misuse allegations, while Al Qudra Holding and Al Buhaira National Insurance Company revealed that their investments in the UAE-based equity company amounted to AED 61.6 million and AED 8.4 million, respectively.

The UAE’s Securities and Commodities Authority (SCA) had required listed companies to disclose their ties and exposure to The Abraaj Group's crisis, setting 28 June as a deadline.

These companies include Abu Dhabi National Oil Company for Distribution (ADNOCDIST), Waha Capital (OILC), Abu Dhabi Aviation Company, Abu Dhabi Islamic Bank, Al Khaleej Investment, Sharjah Group, Manazel Real Estate among others.

Since the beginning of the crisis, only three firms uncovered their exposures to Abraaj; namely Dana Gas, Union Properties and Air Arabia.

Though some companies have not disclosed their exposure to The Abraaj Group yet, investor fears concerning potential risks becomes less than before, managing director of asset management at MENACORP Tariq Qaqish told Mubasher.

He added that the firms’ delayed disclosures mean the absence of indicators that stress their exposure to the crisis, urging them to interact positively with these issues over the coming period.

Translated by: Kholoud Mohamed Hussein