The founder of collapsed Dubai-based private equity firm The Abraaj Group was sentenced in absentia to a three-year prison term by a United Arab Emirates court for a case tied to low-cost airline Air Arabia PJSC, Bloomberg News reported, citing people familiar with the matter.
With Arif Naqvi awaiting trial in London over his possible extradition to the U.S., it remains unclear whether he will serve the sentence, according to the report.
Abraaj borrowed money from the carrier, at which Naqvi is a board member, to cover shortfalls in one of its funds and mislead investors, the report noted, citing U.S. prosecutors.
A legal representative for Naqvi did not comment on the matter, while Air Arabia representatives were not available to comment. The court in Sharjah, where the case is filed, did not answer calls from Bloomberg.