Air Arabia Files Lawsuit Against Abraaj Founder Arif Naqvi

Sharjah-based carrier Air Arabia has filed a misdemeanour case against Abraaj founder Arif Naqvi.

In a statement, Air Arabia said the court filing follows earlier arbitration proceedings that took place in July.

“Air Arabia has investments outstanding with private equity firm Abraaj,” the statement said.

“In addition to Air Arabia’s claims submitted in the provisional liquidations of Abraaj Holdings and Abraaj Investment Management Limited, Air Arabia has commenced with legal proceedings against Abraaj founder Mr Arif Naqvi through the filing of a misdemeanour case in Sharjah court.”

With the move, the carrier becomes the first publicly-traded firm to initiate legal proceedings against the embattled firm.

In June, Air Arabia disclosed that it had an exposure of $336 million to Abraaj through fund portfolios and short-term loans.

The following month, Naqvi stepped down from the board of the airline.

“Air Arabia’s previously appointed team of experts continue to be fully engaged with the JPL’s (joint provisional liquidators), stakeholders and creditors involved in the matter as the court-supervised restructuring of Abraaj continues,” the statement added.

The Air Arabia statement added that its investments into Abraaj have had no impact on its operations.

‘”Air Arabia Group has a diverse investment portfolio and part of this is related to investment in Abraaj,” the statement added.

“Even though this issue has no significant impact on the carrier’s business or on its operations, Air Arabia remains fully committed to protect its investment and business interest.”

Abraaj at one point owned 17 percent of Air Arabia, which is publicly listed on the DFM. The carrier is believed to have loaned Abraaj over $100 million, according to previous media reports.

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.

RECENT NEWS

UAE Announces Major New Tax Rules

UAE introduces Cabinet Decision to amend tax rules and attract investment Read more

UAEs Maseera Acquires Egyptian Fintech ADVA

The move marks a critical milestone in Maseera’s regional expansion strategy Read more

Oman Mandates IBAN For Domestic Transfers From July 2025

The move follows the Oman Central Bank's implementation of the IBAN system for international transfers from March 31, 2... Read more

Egypt And Jordan Thank The European Parliament For New Financial Aid

The European Union members recently approved loans worth $4.4 billion in three instalments to Egypt and $555 million to... Read more

Standard Chartereds SC Ventures To Replicate Asia, Africa SME Model In GCC

SC Ventures to bring its successful SME building strategy in India, South East Asia and Africa to GCC, and plans to rol... Read more

UAE Central Bank Revokes Licence Of Dynamics Insurance Brokers For Regulatory Breaches

Dynamics Insurance Brokers "failed to comply with the licensing terms and requirements issued by the Central Bank and w... Read more