FT: Dubai firm AIX halted payouts for 11 months, investors say

Summary

• AIX stopped paying promised coupons for 11 months while still accepting new deposits, former employees and investors told the FT.
• The firm marketed annual returns of 12 to 30 per cent from Burj Khalifa offices, drawing thousands of clients.
• Losses have exposed gaps in investor protection across Dubai's overlapping regulators, with no single clear route to recourse.

The latest

Thousands of AIX Investment Group clients are facing losses after the Dubai-based firm quietly stopped paying promised coupons over the past 11 months while continuing to take in new deposits, according to former employees and investors cited by the Financial Times. AIX has since sold a motor-racing team and pledged properties and a private jet as collateral to raise funds. The company declined to comment.

Details

• The pitch: Contracts seen by the FT promised annual returns starting at 12 per cent and reaching 30 per cent. Some products required as little as $10,000, while wealthier clients, including a Gulf royal, built positions worth tens of millions of dirhams.
• The trading: AIX used investors' money for speculative bets on commodities, foreign currency and digital assets, according to an adviser to the company and a former employee. One lawyer described the strategy as "high-risk gambling." The firm has not published a public account of its trading losses.
• The sales machine: Advisers earned a 5 per cent commission on committed amounts, rising for top performers, former employees said. Some insisted on cash deposits to collect immediately. A referral bonus scheme pulled in clients' and staff networks; some investors arrived with cash-filled shopping bags.
• The exposure: British entrepreneur Dariush Soudi told the FT he invested Dh145mn, equal to $39mn, and is owed Dh45mn in dividends after seven and a half years without a missed payment. One couple said they each invested Dh1mn of family inheritance, splitting it to collect a Dh20,000 referral bonus.
• The explanations: When payments stopped, managers first blamed banking constraints, then geopolitical turmoil, and asked clients for patience while they worked to reverse losses and liquidate assets. AIX declined to comment to the FT, citing the sensitive situation, legal implications and the need to protect its investors.
• The restructuring offer: AIX on Monday asked clients to consider a court-led restructuring, arguing its investments could recover rather than be sold at a loss, according to an announcement seen by the FT. Three options were presented, including a four-year plan promising a 16 per cent annual coupon and repayment of principal in January 2031.
• The ownership: Former employees, clients and lawyers identified Slovenian national Aleš Čebulj as owner, though his name does not appear on registration documents. An adviser called him the ultimate beneficial owner and founder. Fellow Slovenian Gregor Simonič was named manager of AIX Holding Limited. Neither responded to requests for comment.
• The local link: Rashid Al Habtoor, son of a prominent Dubai billionaire, appeared on AIX's corporate licences and featured in an Emirates in-flight advertisement. He could not be reached. Executive Fadi Dabbagh's lawyers said he had no executive or managerial authority, left in February, and is suing AIX to recover his own investments.
• The regulators: AIX falls outside the DIFC regulator's remit and has never been the subject of one of its alerts. It holds a UAE Capital Market Authority licence for financial advisory services, while its property unit is registered with Dubai's Department of Economy and Tourism. Dubai authorities have questioned back-office staff.
• The Cayman case: The Cayman Islands regulator said last month that an AIX division managing the group's bond-like products had never been registered, licensed or authorised to conduct securities investment business. An investor represented by Harneys has petitioned the Grand Court to wind it up; AIX has yet to file a defence.

Background

AIX grew alongside Dubai's post-pandemic boom, as wealthy Russians, Indians, Europeans and Chinese moved assets to the UAE for its lack of income and capital gains taxes. The firm advertised on Emirates, sponsored Celta de Vigo, bought a Formula 2 and Formula 3 team and donated to the Al Jalila Foundation.

Between the lines

Dubai lawyer Carlo Fedrigoli argued such structures are deliberately scattered across jurisdictions to exploit regulatory gaps, with flashy offices in a reputable hub supplying partial credibility. AIX fits that description: a Burj Khalifa address, a licence covering advisory services only, and bond-like products booked through an unregistered Cayman entity. The emirate's split regulatory map left clients without one obvious door to knock on.

What's next

Watch the client vote on AIX's three restructuring options, including the 2031 repayment plan, and the Grand Court of the Cayman Islands winding-up petition, where AIX has yet to file a defence.

Source: Financial Times