Swiss Private Bank J. Safra Sarasin and Bank Sarasin-Alpen (ME), the two defendants in the financial mis-selling case in the GCC region, have lost their first appeals against the judgement issued by the Court of the Dubai International Financial Centre (DIFC).

The two banks have agreed to pay the sum of $35m to cover financial losses to the Al Khorafi family.

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In November 2015, the court ordered the two defendants to pay Al Khorafi family more than $70m to cover financial losses resulting from the sale of $200m structured investment products between late 2007 and early 2008.

J. Safra Sarasin was ordered to pay $35,028,474.00 and its subsidiary was ordered to pay the same amount as joint damages and an additional equal amount as punitive damages, together totalling $70,056,948.00 plus costs and interest.

Bank Sarasin-Alpen (ME) did not pay its share and sought a stay of the order to pay the damages which was denied on 18 January 2016.

In February 2016, Bank Sarasin-Alpen (ME) failed to meet the requirement of the DIFC to deposit the sum of $35m (its share of $70m damages) pending the two banks’ appeal against record damages awarded against them.

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The petitioner is looking to implement the next steps in securing the remaining sum from Bank Sarasin-Alpen (ME) via the DIFC Courts.

Rafed Al Khorafi said: "Justice has been served in a systematic and procedural manner by the justices of the DIFC Courts. It has been a lengthy battle and I am glad to see that the case will serve as a precedent for all investors and banks to abide strictly by the code of the DFSA in all their future dealings."