DFSA to Take Action Against Naqvi and Siddique for Serious Failings Concerning Abraaj Group

The Dubai Financial Services Authority (DFSA) has today published Decision Notices taking action against Mr Arif Masood Naqvi (Mr Naqvi) and Mr Waqar Siddique (Mr Siddique) for serious failings in respect of the Abraaj Group.

The DFSA imposed a financial penalty of USD 135,566,183 (AED 497,866,807) on Mr Naqvi and USD 1,150,000 (AED 4,223,375) on Mr Siddique. Mr Naqvi and Mr Siddique are also prohibited and restricted from performing any function in or from the DIFC. 

Mr Naqvi and Mr Siddique dispute the DFSA's findings and have referred the Decision Notices to the Financial Markets Tribunal (FMT), where the parties will present their respective cases. The DFSA's decisions are therefore provisional and reflect the DFSA's belief as to what occurred and how it considers their conduct should be characterised.

The FMT will determine what, if any, is the appropriate action for the DFSA to take and remit the matter to the DFSA with such directions as the FMT considers appropriate to give effect to its determination. The DFSA's decisions may be confirmed, varied or overturned as a result of the FMT's review.

Mr Siddique and Mr Naqvi both applied to the FMT for orders to prevent the DFSA from publishing the Decision Notices and to have the FMT hearings held in private. In January 2022, the FMT determined that the DFSA could publish the Decision Notices and that the FMT hearings will be public. The FMT stayed the operation of the financial penalties until the conclusion of the FMT proceedings but the prohibition and restrictions on Mr Naqvi and Mr Siddique from performing any function in or from the DIFC remain in effect.  Mr Naqvi had previously applied to the DIFC Courts in June 2021 for permission to commence judicial review of the DFSA's decision to take action against him. That application also failed, so the DFSA proceeded to issue Mr Naqvi with the Decision Notice, which he then referred to the FMT.