Arif Naqvi, founder of embattled private equity group Abraaj, has resigned from the board of the low-cost carrier Air Arabia, the airline said.

The carrier said in a statement posted on the Dubai bourse that the board would nominate a member in place of Naqvi within coming weeks.

Facing allegations of $1 billion of fund mismanagement, the company is currently undergoing court-supervised restructuring.

Naqvi, who is currently out of the UAE, is facing lawsuits and reached an out-of-court settlement in a Dh177 million case in July. A court hearing has been announced for a second lawsuit involving Dh798 million on August 14.

Air Arabia announced Dh230 million for the first half of 2018, a decline of 12 per cent. Its shares lost 2.9 per cent on Sunday to close at Dh1.02.

The UAE regulator had earlier asked all the listed companies to declare their exposure to Abraaj. So far, more than a dozen listed companies have announced their direct or indirect exposure to the private equity giant.


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