UAE’s Air Arabia has $336m exposure to Abraaj

Shares in Air Arabia plunged 7 per cent this week because of the link between the airline and Abraaj

Air Arabia has an overall exposure of $336m to Dubai-based private equity firm Abraaj, which has filed for provisional liquidation, the airline said on Wednesday.

The carrier said in a statement emailed to Reuters that it had appointed a legal representative to protect its business.

Shares in Air Arabia, the only listed airline in the United Arab Emirates, plunged 7 per cent this week because of the link between the airline and Abraaj.

Read: Air Arabia says working to protect its investment in Abraaj

Abraaj, the Middle East’s biggest private equity firm, filed a petition in the Cayman Islands last week asking the court to appoint provisional liquidators for the embattled company.

A court in the Cayman Islands this week ordered the appointment PwC as provisional liquidators of Abraaj Holdings and Deloitte as provisional liquidators of Abraaj Investment Management Ltd.

Read: Abu Dhabi firm offers to buy Abraaj’s investment management arm

Air Arabia said this week it had appointed a team of experts who are “actively engaged with all stakeholders and creditors involved with the matter to ensure Air Arabia’s investment and business interest is protected.”

The carrier said on Wednesday there was “no significant impact on Air Arabia’s daily or future business or on its liquidity status and that the business is operating as usual.”