AIX promised Dubai investors up to 30% a year. Now it cannot pay them (opens the source in a new tab)
- The FT reports Dubai's AIX Investment Group, which advertised on Emirates and hosted clients in the Burj Khalifa, promised returns of up to 30% a year and paid advisers commissions to bring in money.
- Over the past 11 months it quietly stopped paying coupons while still taking deposits, former staff and investors say, and it has sold a racing team and pledged assets to raise cash.
- It now asks clients to back a court-led restructuring. The Cayman Islands regulator has warned about an unlicensed unit, and Dubai's patchwork of regulators leaves investors unsure where to turn.
- 30%
- top promised yearly return
- 11 mo
- of missed coupon payments
Why it matters Returns far above market rates, sold with glamour and referral bonuses, are the oldest warning sign. Indian savers, many among AIX's clients, should check who regulates any offshore scheme.
Other side AIX argues a restructuring lets its investments recover instead of being sold at a loss. The claims come from former staff and investors, and AIX declined to comment.