Multi Billion Dollar Companies Continue Their Collapse In UAE: 3 More Banks To Merge

As one after another largest businesses (in the world) collapse in the UAE, as we have been predicting since 2015, five major banks have merged in the last 2 years and 3 more have announced just now that they shall merge.

NBAD
FGB
ADCB
Al Hilal
UNB

All the above banks have merged.

3 Sept 2018: 3 Major UAE Banks to Merge This Month: ADCB-UNB-Al Hilal Banks To Merge

Just now it has come out that 3 more banks in Sharjah, UAE are about to implode hence shall be merged.

Now, today, 28 Sept 2018, Invest Bank, United Arab Bank and Bank of Sharjah shall merge.

27 Sept 2018: UAE's Bank of Sharjah, Invest Bank, UAB in merger plan –sources

Unfortunately, local banks cannot leave UAE like Barclays, Lloyds, ABN AMRO, RBS, Societe Generale, Dresdner, EFG, UBL etc have done. Lately, some Indians banks have also begun the process to exit from DIFC.

2 below mentioned major multi billion dollar companies bankrupted during 2018 in Dubai aside from many others that are not known publicly:

1. Schon Properties

Dubai: All Company Assets Of Top Dubai Based Developer & Pakistani Billionaire, Schon Properties, Frozen

2. Abraaj Private Equity Group

Abraaj Group: Last Days Of An Insolvent Private Equity Giant

On 17 July 2017, Fly Dubai was “merged” with Emirates.

Emirates and flydubai join forces, announce extensive partnership agreement

Aldar and Sorouh developers merged in June 2013.

Aldar completes merger with Sorouh     

On 3 June 2013, Dubai Aluminium was merged with Emirates Aluminium.

UAE creates $15 billion aluminium firm in state merger

Even the sovereign funds of Abu Dhabi are collapsing and being merged every 2 years as their size and strength continues to shrink massively.

29 June 2016: Abu Dhabi to merge sovereign funds Mubadala and IPIC

Mubadala further merged with ADIC on 21 Mar 2018.

ADIC to join Mubadala group as wealthy Abu Dhabi consolidates funds

Then in Mar 2018, Aldar and Emaar reached a “partnership” because they are in serious difficulties and Emaar is busy selling all its top assets before all of them collapse.

20 March 2018: Aldar and Emaar Properties enter into Dh30 billion strategic partnership 

Now the mother of all “mergers”, as multi billion dollar companies collapse like dominoes, is happening between Emirates and Etihad!

Thousands upon thousands shall be fired across UAE from Etihad to Sharjah banks to Emirates to all the previously merged banks.

Etihad is severely impacted and so is the fate of Emirates but at least Emirates is profitable and larger in size so will keep shrinking and not collapse yet. However, both have been selling planes and curtailing their new plane orders throughout 2018.

Etihad did not have the money to invest additional funds in Air Berlin or Alitalia and bankrupted both of them late last year. The bond of Etihad - EA Partners - continues to trade at insolvent levels around USD 49-55 levels.

14 June 2018: Etihad Lost $1.5 Billion Last Year — After a $2 Billion Loss the Year Before

14 June 2018: Etihad Airways cuts losses but Alitalia and Airberlin continue to haunt

20 Sept 2018: Emirates Seeks Etihad Takeover to Create World’s Largest Airline

28 Sept 2018: A tie-up is mooted between Emirates and Etihad

Due to insolvency situation at Etihad, the next airline that Etihad will help shut down is Jet Airways of India who is running short both on cash and time. They don't even have money to pay monthly salaries for the second time this year.

27 Sept 2018: Jet Airways defaults on salaries yet again, seeks 13 more days

The above is just a view of the multi billion dollar companies in UAE.

One can imagine the state of supermarkets, restaurants, hotels, smaller businesses, wholesalers, shipping and oil companies, gold and diamond jewellers, real estate developers, schools, shopping malls etc who are struggling and several have already collapsed and many have shut.

We are not even mid way through this crisis in UAE. 

Next few months are going to be extremely debilitating for the UAE economy and even more shocking than one can even possibly imagine as on date.