Airlines, Contractors, Banks, Supermarkets, Small Businesses, Many Are Collapsing Across GCC

Spearheading the collapse of GCC are their airlines.

Several tiny private airlines have shut in UAE since 2006.

A big one that collapsed in Jan 2014 was RAK Airways.

Bahrain Air collapsed in 2013.

Emirates had a decline of 86% in it's profits during the first half of 2018.

Etihad has had $3b loss in 2016 and 2017 combined. A bond guaranteed by Abu Dhabi is at $56 as on today on which they have skipped the interest payment because Abu Dhabi has run out of money.

Now a Kuwaiti airline part owned by KIPCO and part owned by Sheikh Hamad Al Sabah, of the ruling family, has collapsed. 

KIPCO has $34b in projects and is a significant national player.

Watania is also public listed and this is the second and last time they have been halted in 2018 as they have run out of a few million to support the airline.

Watania had just placed another “largest in the world order” of 25 Airbus planes in Nov 2017 when they don’t even have money to run existing flights!

While in July 2018 they placed order of 10 Embraer planes with agreement to buy 10 more!

What can ego do to the best of men (or companies) who cannot even forecast their own demise.

Let's not even start on those scum bankers and scum lawyers who supported the airline and the Sheikh with agreements to buy new planes when the company has no cash and declining business just so that they can make their fees!

Now Airbus has lost orders of 25 mega new plane orders and Embraer has lost 10 plane orders.

It's extremely rare that any company including an airline owned by the ruling family has collapsed and shut down with hundreds of job losses and the puppet media says their “license has been revoked”! That's a lie.

In addition, all the banks who lent money to this airline owned by the ruling family to acquire planes previously or finance their operations will lose all their loans.

Everything in GCC is on fire and collapse mode like in those Hollywood movies where we see entire empty cities!

Kuwait aviation regulator revokes Wataniya Airways’ operating licence  

Meanwhile, thanks to getting a contract with Abu Dhabi, an operating firm from Austria since 1854, (after 164 years) has become insolvent once they got involved in the Middle East over the last decade.

Same is the fate for all others operating in the Middle East.

Louvre Abu Dhabi dome fabricator declares insolvency over late payments   

UBL bank from Pakistan (owned majority by Abu Dhabi Sheikhs and the No 1 private bank from Pakistan) fired more than 150 bankers in Aug 2018 in UAE and then shut their complete NY operations last month.

Now Standard Chartered Bank has fired hundreds of employees in Dec 2018 in UAE and perhaps across GCC. 

Thousands more bankers will be fired in the weeks ahead across UAE.

Standard Chartered cuts jobs in UAE retail bank -sources   

Things are so tough that the most premium assets being 5 top five star hotels of the top developer of Dubai, Emaar, had to be handed over to Abu Dhabi. 

They were valued at over AED 2.9 billion but it seems Abu Dhabi has simply taken them over since no price has been disclosed.


Emaar Hospitality to sell five hotels to Abu Dhabi National Hotels  

In the whole mess of GCC, Oman and somewhat Qatar remain relatively better than the other 4 GCC economies.

While Kuwait airline shut, Oman continues to grow robustly despite regional tensions and one budget airline, Salam Air, received a new A320Neo plane just today whereas Fly Dubai, Watania and most others (except Air Arabia) continue to lose money and market share.

SalamAir becomes first carrier in Oman to get Airbus A320neo

It's very sad and unfortunate what's happening but we predicted it all along since 2015.

Unfortunately, next few months will be quite ugly because we predict that oil will plunge to around USD 30 levels or below again among many other variables causing much worse economic conditions.