The Abraaj Group, once the largest PE firm in the Middle East with $13 billion in assets under management, collapsed in 2018 after the Dubai Financial Services Authority discovered extensive fraudulent practices that resulted in the issuance of a $315‑million fine in July 2019. More than a year after that penalty, the scandal continues to cast a pall over PE in the region, and outside investors remain skeptical of local fund managers and M&A opportunities. There remains hope, however, that changes adopted by sponsors and the industry at large – both culturally and legally – will help them thrive in the coming years. To understand the lingering fallout of the Abraaj Group’s downfall, the Private Equity Law Report interviewed various attorneys, investors, managers and investors operating in the Middle East. The first article in a two-part series details the reactions of regulators and LPs in the Middle East, and it provides an update on the criminal and enforcement actions taken against the Abraaj Group and certain of its key executives. The second article outlines steps GPs in the region have taken to adapt to a tougher fundraising environment and uncertain future. See “Key Factors When Deciding Between Offshore Domiciles for Establishing Shari’a-Compliant PE Funds” (Feb. 18, 2020); and “The Collapse of Abraaj: Resolved and Pending Cases in the U.S. and Dubai Against the Former PE Giant” (Oct. 22, 2019).