The serious financial troubles facing the UAE-based investment and private equity business, Abraaj Holdings Group, are not seemingly having any effect on the operations of two of the companies in which it holds stakes.
These two companies are ART Marine, the leading yacht services company in the Middle East, and Orascom Construction Industries, a member company of the Egyptian Orascom Group which operates a number of marinas across the region in such as Egypt and Jordan.
The Abraaf Group was established in 2002 by founder and chief executive, Arif Naqvi, and since then it has developed into one of the Middle East’s largest investment and private equity groups specialising in emerging markets. It also has a major base in the Cayman Islands where a number of its investments are registered.
Currently Abraaj is reportedly facing debts in excess of $1bn and two shareholders were trying to close the business down. In response to this Abraaj Holdings Ltd has entered into provisional liquidation in the Cayman Islands which ensures that the rights of all stakeholders can be protected while the Company and the three appointed joint provisional liquidators, restructure Abraaj’s obligations.
Regarding ART Marine, Bruno Meier, the company’s COO, told IBI: “ART Marine, although part of Abraaj’s portfolio of companies, is a standalone company and for us it is 'business as usual'. No matter what happens with Abraaj, ART Marine has its own intrinsic value and we shall continue to maintain self-sustainability and continuity in the very industrial field we have been successful in.”