UAE markets need ‘post-Abraaj’ era, says Daman Investments

Abu Dhabi: Concerns about corporate governance have become one of the keys issues keeping investors out of stock markets in the UAE after recent cases of mismanagement, including fraud by Abraaj Group, said Shehab Gargash, the chairman and founder of Dubai-based Daman Investments Psc.

“Our clients have come to us and said ‘we need to be more comfortable where we place our money’,” Gargash, said in an interview in Dubai after a meeting with journalists on Sunday. He highlighted the need for stronger corporate governance locally, with shareholders having access to information in a “fair, accurate and timely manner.” Daman Investments has institutional investors, companies and high-net-worth individuals among its clients.

Abraaj, which once managed $14 billion, caused the world’s biggest private equity insolvency to date. It was fined a record $315 million last week for deceiving investors and misappropriating funds.