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.
Emicool Secures First-ever Green Financing To Boost Sustainable Growth
The liquidity generated will be strategically deployed to accelerate the company’s district cooling projects across t... Read more
UAEs Ruya Becomes First Global Islamic Bank To Offer Shariah-compliant Crypto Trading
Digital Islamic bank ruya teams up with Fuze to offer secure, ethical crypto investments aligned with Islamic financial... Read more
Startups In Abu Dhabis Hub71 Secured $2.17bn In Funding Last Year
Hub71 startups in Abu Dhabi saw massive increase in funding in 2024 as innovation economy thrives Read more
UAE Fintech Pay10 First To Launch On Central Banks Open Finance Framework
The company has acknowledged the Central Bank of the UAE's crucial role in facilitating a responsible and secure rollou... Read more
PayPal Expands In MEA Region With Its Newly Launched Hub In Dubai
Will serve 80 countries in Middle East and Africa from its Dubai Internet City hub; Has signed several deals with regio... Read more
New Board Certifies DMCC Tradeflow As Fully Shariah Compliant
Shariah Supervisory Board appointed to oversee Tradeflow’s Islamic finance offering; Certified fully-compliant with A... Read more