Abraaj has hired Deloitte to examine its business, including its troubled $1 billion health care fund, after investors questioned an earlier review by KPMG of the embattled fund, people familiar with the matter said.
Abraaj has been trying to stem the fallout from a row with four of its investors, including the Bill & Melinda Gates Foundation and the International Finance Corp. (IFC), over the use of their money in the fund.
A Deloitte team, including specialists in forensic services, is working inside Abraaj’s office to help the health care fund review its governance and control mechanisms, the sources said.
Abraaj said in an email it does not comment on mandates for its advisers, while Deloitte declined to comment. KPMG, the Gates Foundation and IFC have also declined to comment.
Some investors felt the month-long KPMG review, completed on Feb.7, was conducted too quickly and was not comprehensive, one of the sources said. Deloitte was therefore brought on board by Abraaj to conduct a separate review, the sources added.
Abraaj has said KPMG conducted a review based on agreed-upon procedures and had verified that all payments and receipts in the fund were in line with agreed procedures.
Abraaj’s founder Arif Naqvi handed day-to-day running of the investment management business to two co-chief executives and the group was split into Abraaj Investment Management Ltd. (AIML) and Abraaj Holdings in late February.
Naqvi remains CEO of Abraaj Holdings, a significant shareholder of AIML, the fund management business.
Abraaj, founded in 2002 by Pakistan-born Naqvi, has shaken up its management, suspended new investments and freed up large investors from millions of dollars in capital commitments after deciding to suspend in a planned $6 billion new fund.
The firm was managing $13.6 billion before it decided to return money to its investors in its new fund.
Investors in the health care fund have hired Ankura Consulting to determine whether Abraaj breached any agreements on money that was not invested but was drawn down, sources told Reuters earlier. Ankura has not responded to Reuters queries
“We are working collaboratively on a range of issues with investors in our Healthcare Fund while also preserving the Fund’s vital mission of delivering affordable, accessible and quality health care to underserved markets,” Abraaj said when asked about how the money was handled.
Abraaj had earlier said it had returned the unused capital in December, following discussions with investors and denied allegations that it misused the cash.
Abraaj has seen senior departures including the resignation of its chief executive officer and is considering selling part of its investment management business, three sources familiar with the matter told Reuters last month.
Deloitte undertakes review of Abraaj’s business, troubled fund: sources
Deloitte undertakes review of Abraaj’s business, troubled fund: sources
- Forensic services team in Abraaj's office
- Latest move to stem fallout from investor row
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
