We had heard about this Azizi news a a couple of weeks ago but for the lack of public news evidence we were unable to discuss or share any information.
First, Abraaj Group, DIFC went bankrupt in June 2018 in Dubai, loss USD 14bn.
Profile of Azizi Developers:
First, Abraaj Group, DIFC went bankrupt in June 2018 in Dubai, loss USD 14bn.
Then, Schon Properties's assets were seized (hence, bankrupt) in Dubai, on 3 Aug 2018.
It seems trouble maybe headed towards Azizi Developments next.
Things have been bad in Dubai since Jan 2015 (or some others would argue since Nov 2008), hence, cutting salaries of existing employees in 2018 at Azizi Developments by a massive 33% is a sign of some form of distress.
9 Aug 2018: Azizi Developments: Scores quit after massive pay cuts at real estate company
Profile of Azizi Developers:
Established in 2007, the company’s diverse experience in the property market has led the value of its current portfolio in the emirate to over USD 5 billion and more than 100 projects at various stages of development.
According to the Gulf News article above, Azizi Developments has more than 200 projects under construction.
Meanwhile, this is what WSJ wrote about Dubai/DIFC last week.
“How many Abraajs are out there when things here tend to be swept under the carpet?” he said.
The DFSA’s enforcement arm may still take action against Abraaj, said people familiar with the matter. Out of the public eye, the DFSA has been receiving updates from one of the company’s audit firms.
The longer it waits, the more Dubai’s ability to attract foreign capital could be at risk, said Oliver Schutzmann, chief executive of Iridium Advisors, an investor-relations firm.
While WSJ was writing the article and then published it on 2 Aug 2018, Schon Properties went bust.
The article has not even made the rounds and seems Azizi Development is in some sort of cash flow trouble.
Furthermore, this is tip of the iceberg. And we have been warning about this since July 2015.
Yesterday, Aug 8, 2018, CEO of Beaver Gulf, a large contractor said the same thing, and we concur with him.
Tick tock...who will go bankrupt next...?
We will surprise you with more news soon.
Stay tuned....
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