Abraaj's Naqvi sentenced to prison by UAE court.

Position:Arif Naqvi, founder of defunct Dubai, United Arab Emirates-based Abraaj Group

Arif Naqvi, the founder of defunct Dubai-based private equity firm Abraaj Group, was sentenced in absentia to three years in prison by a court in the United Arab Emirates for a case involving low-cost carrier Air Arabia PJSC, people familiar with the matter said.

It's unclear whether Naqvi will serve the sentence, given he's in London awaiting a hearing over his potential extradition to the U.S. The sentencing comes a week after the Dubai financial center watchdog fined the collapsed buyout firm a record $315 million for misleading investors and misappropriating their funds.

Naqvi's legal representative declined to comment, and Air Arabia representatives weren't available to comment. Calls to the court in Sharjah, where Air Arabia filed the case, were unanswered.

Naqvi faces fraud allegations in the US. In London, he was granted conditional bail in May...

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