"Another board member, Christine Holgate - who represents the Australia Post Transaction Services Pty Ltd - resigned from Aramex's board as of April 10.
Last month, Australia Post sold a 10 percent stake in Aramex for $164 million, according to a DFM filing."
Tabreed is a listed electro mechanical cooling company in Dubai whose CEO has resigned.
18 Apr 2019: Tabreed’s CEO resigns
Julphar is a major pharma manufacturer with more than 5,000 employees with HQ in RAK, UAE.
Almost everyone in top management has resigned.
"Last week the company said five of its board members had resigned from the company. Shaikh Saqr Bin Humaid Al Qasimi, Abdulaziz Abdulla Al Zabbi, Hassan Al Alkim Al Zaabi, Yousuf Ali Mohammad, Ahmad Salim Al Hosni resigned from the company’s board on March 13.
The series of resignations came after the company recalled three of their products — Sedofan, Profinal and Cefuzime — “for not complying with product specifications”."
"The company reported a net loss of Dh153 million on revenues of Dh863 million for 2018, resulting in cost reductions and steps to maximise cash flows.
“We saw a decline in our revenue and profitability due to the headwinds in Saudi Arabia, but we continued to work hard on new product launches and building new alliances, which will have a positive impact on our long-term performance. In 2019, challenges still lie ahead but we are taking steps to strengthen our financial health as part of a new far reaching strategy that will see us increasing our effectiveness and efficiency,” Jerome Carle, General Manager of Julphar said on February 15."
17 Mar 2019: Gulf Pharma CFO resigns after product recalls
CFO of Emirates NBD Bank (largest bank from Dubai and third largest by assets in GCC, 56% Govt owned) also has resigned.
We suspect CFO of Etihad who joined in Jan 2018 who may have refused to sign some papers because CFO's are CEO's are the only people who have legal responsibility and are authorized for signing on all accounts and for the balance sheet.
Etihad is already in serious stress after losing USD 4.8b in the past 3 years, losing billions in Air Berlin, Jet Airways and Alitalia, defaulted on bond payments, losing employees and is selling planes.
"Powers, a former JetBlue CFO, was hired by Etihad following a major shake-up of management that included the departure of long-serving Group CEO James Hogan and Group CFO James Rigney.
The airline, which launched a five-year turnaround strategy in 2017, trimmed its ambitions and started reorganising as a mid-sized carrier focused on point-to-point traffic in 2018.
This year, it cancelled dozens of Airbus and Boeing aircraft orders worth tens of billions of dollars."
He must have quit because there is no way on Earth to reverse depleting restaurant sales in Dubai. He had joined in Dec 2016.
17 Mar 2019: UAE’s Dhabi Group chief executive resigns
"According to a board member profile posted on DSI's website, Almheiri is the chief executive officer of HMZ Holdings, a commercial entity founded by HH Sheikh Hamdan Bin Mohammad Bin Zayed Bin Sultan Al Nahyan, who also serves as its chairman."
"The contractor describes Almheiri as "a lifelong close advisor to His Highness","
"The company said Kazim is leaving in order to take up another position with a Dubai government-owned organization."
Marka has been losing revenue in millions, no wonder the CEO had to leave so fast because there is no magic solution to make revenue from empty shops.
14 Feb 2018: Marka loss widens as revenues plunge 68 per cent
It seems all CFO's, CEO's and Board Members of top most companies are leaving their jobs and leaving their responsibilities behind because....the....worst.....is here and will show us the reality in a few months from now.
How many of them resigned from overseas? Fearful to be blamed for company losses and thrown in jail?
ReplyDeleteHello,
DeleteThank you for visiting and for your comment.
Cannot say how many may have resigned while abroad because most are very large companies and are public listed hence, chances are quite slim, however, it is possible in some cases.
There are so many people who resigned from abroad previously in the last few years but none is reported in the media so we cannot mention them publicly.
We know so many CEO's and owners of businesses who have run away which is why we know with 100% certainty that things are ridiculously bad and will get so bad that people will be begging for mercy in Dubai.
The previous Nov 2008 Dubai crisis will look much better although it caused losses in billions of dollars to tens of thousands of real estate investors who continue to remain bitter and very angry until today with no recourse.
The difference between 2008-2009 crisis and 2014 onwards crisis in Dubai is two fold:
1. In 2008-2009 the crisis was exclusively in the real estate sector where Abu Dhabi could sprinkle a few billion and help Dubai.
This time, it is in every single sector from banking to real estate to trade to tourism to retail to oil to airlines to military wars/security etc.
Plus AD itself has run out of cash.
2. In 2008-2009 the crisis occurred very suddenly, literally within days.
This time, the crisis has been growing upon us since Jan 2015 which the Govt is doing a fantastic job of hiding and shoving EVERYTHING under the carpet. So, the "positive" people who are still tied to some sort of job or business in Dubai are forced to continue working because they still get paid, however less it may have become.
Such people have continued to lie to themselves and their families and keep working until the crisis engulfs them personally which is what we believe is occurring here today by the wave of resignations across companies.
These are public listed companies so they cannot lie and know the outcomes if they do so when and if they sign off on any paperwork.
The fear is so high in the last few years that no one can speak nor say anything so they choose to walk away when they still have the chance.
If any CEO goes upside down on his head and walks all over Dubai even then he cannot generate sales.
What is interesting is that many of the people who have resigned are locals themselves.
Where will they run? :) although we now even know of Emiratis who have run and several are in very very bad situations.
We don't believe anyone would have resigned from abroad, though it is possible, because they have known the situation for years and they have themselves to blame because they kept lying to their shareholders (in order to generate an income for themselves) and now have reached a point where the responsibility will be on the signatory for the oncoming future problems.
We have warned for years that Middle East should not issue USD bonds because the laws of England apply and they need to tell the truth in those bond prospectuses else their future of GCC companies will get even worse than it already is which is also what is contributing to this mess.
Because we believe that there is so much hanky panky in GCC that they simply cannot open their books to outsiders and if they do, they will all be sued like Abraaj, Schon and so many others yet to come.
The signs are very ominous, let us see if we are right in the months ahead....
A UAE national friend of mine once told me that expats can go back to their home countries, where will the nationals go. They are investing in other countries but are having a hard time transferring funds outside UAE. They cannot transfer huge sums out.
DeleteReading your blog depresses me. Not that there is no truth in it. But the problem is where do the expats go. People who have lived for years. Its so hard on the children. Have no words to express the sadness which I am feeling now. If you say AD has no cash then it is indeed a BIG PROBLEM.
Hello again,
DeleteYes, you are right. Saudis and UAE locals are no longer allowed to transfer money out and all banks have been told to get an approval from the "authorities" and inform them if anyone transfers any big sum out. It could be above a million dollars or even half a million dollars but we are not sure of it because this applies only to locals and there is no official info on this matter, all is verbal.
They have been asking locals for years to bring their money back.
The arrest of thousands of princes in Saudi lost them trillion dollars or even more. All their assets except very little have been taken away by the Govt, UAE assisted them as well and divulged all data and most likely all real estate and bank accounts in UAE were also handed over to Saudi Govt.
It is so opaque that there is absolutely no information available unless someone is known personally to somebody. All phones, internet, emails, travel, bank accounts, credit cards etc are tapped so no one has guts to speak unless it is in person.
All the dollar bonds that used to be issued from 2005 to 2018 to support GCC entities, usually local Emiratis or local banks would invest themselves into it from abroad. Even those days are gone. That was a way to pay interest to the locals on their assets plus support their sheikhs and country both. They obliged.
However, now the noose has turned on them.
In the case of Etihad bonds it has come out that Emiratis had to write a letter to everyone including rulers asking their money and so far it appears money has not been paid back, not even interest.
Yes, the blog is depressing because it is the reality. We cannot hide the reality. We just connect the dots and present in a very factual and a bit entertaining fashion else it is so dull and depressing to read all this.
But because it is about money and their own future wherever in the world so almost everyone is interested in reading it. We can help people by warning what's happening who have no time or skill to research and put it all together because no news is available easily.
No Govt in the world is informing their citizens on what's going on in reality.
It is very sad for people who live there in UAE but looking at the cost of living and lack of business, it is impossible that anyone can make reasonable money. If someone is not making or saving money today, it is guaranteed that next several years they will make even less because costs and taxes will rise even more.
Children and families have a devastating price to pay but one must chin up and make a plan.
Because many people are unlucky once they end up in jail or need to run away, then they will never get a police clearance certificate which is a must when someone moves on whether for immigration or for passport or for tax or other purposes.
Yes, we are pretty sure that unless AD gets a trillion or half a trillion dollars like Saudi did by arresting Saudi princes, there is no other solution for them to save themselves as a Govt.
Any solution is a very ugly solution and our advice remains the same, to leave UAE and find alternate places or sources of income, whatever one can do, whether locals or expats.
But we also know that most will not heed our advice until something happens to them and by then it is too late.
Just like after 45 long years, interest rates are rising for the first time and oil is dropping for the first time for so long, with electric vehicles and natural gas on the horizon instead of oil, the good old days of GCC are totally finished forever.
It would be wise to pack up and move however difficult it maybe else everyone will leave penniless or via a jail.
This is reality not just a prediction because it has happened to so many and the noose keeps tightening every single day.
GCC has now become like that famous Eagles song....Hotel California: "You can check out anytime you like...but you can never leave"....
Thank you and best wishes.
I visited the chrysler building today...i xan not believe they could not fetch half a billion for that....times must be tough everywhere if they had no buyers or was it sold with debt?
ReplyDeleteHello and Good evening in NY,
DeleteThank you for visiting and for your comment.
UAE and Saudi have been selling all their iconic assets since 2-3 years in distress conditions. They have absolutely no choice but to cash in.
There was a very amusing headline about Abu Dhabi in the WSJ about 2 years ago, it said "Have to sell this building by 5pm today?" about one of their London properties.
Chrysler building was built in the 1920's due to which one article in the NYT or some other media came suggesting that the plumbing is leaking badly and the costs are very high to keep the building running.
It also suggested that there is barely 1 person in entire America who has experience or knowledge on how to fix equipment of water and electricity of that era.
Between stress in AD and the costs to keep it running and the fact that such towers bleed money endlessly, it makes no sense for absolutely anyone on Planet Earth to buy this building. It has no utility value or rental value except that it is "iconic" and someone with too much money to burn can only buy it.
We also predicted this several years ago that the super wealthy around the world will be selling their global assets at the same time after 2017-2018 in stocks, bonds, real estate, private equity, businesses etc which is what is happening around the world and almost nowhere prices are able to rise in a stable manner.
Plus they will have no buyers because everyone is shutting down or not buying for multiple reasons from capital controls (Africa and EU) to money laundering checks (everywhere), to criminal investigations (China and India and more) to bans (Russia, Iran) to bankruptcy (GCC) etc.
The building has no value, they are lucky they got USD 150m but the new buyer must have factored in USD 100m to USD 200m to maintain the building over the next 2-5 years plus may have own tenants but the loss on the loan will remain with Abu Dhabi. They should be grateful that unlike in Etihad they have stopped a multi million dollar bleeding per annum.
Abu Dhabi has lost in Air Berlin, Chrysler Building, Citibank USD 7.5b, assets within AD like Masdar and Ferrari World and empty Yas Island, Nurai project....., low oil price, way more debt than ever in history, lately Jet Airways of India, Alitalia and in real estate around the world.....
They have no idea how much they are losing and watch frighteningly as money disappears right in front of their eyes.
It seems some private equity firm has bought the Chrysler Building who believes that they can turn the situation around if they buy at a 90% discount.
Let's see what happens because Private Equity was running Sears and Toys R Us in US too.
Thank you and best wishes,
Hi Manoj
ReplyDeleteYour blog is informative. Yes, I agree with the person who said its depressing. It is indeed depressing for the expats who are living in the UAE. Its not that there is no hiring, people are being hired but at the same time companies are downsizing. Heard of a person who has come from Canada to look for a job.
I have forwarded your link to friends. Unfortunately some people have just blanked themselves out and do not want to hear anything negative although deep inside they are fully aware of the reality but do not want to accept it.
Hello,
DeleteThank you for visiting and for your comment. We appreciate you sharing the blog with your friends.
We do not blame normal folks to not understand our thoughts.
Our blog is quite technical and contains a heavy dose of reality for most regular people despite us using layman language as much as possible.
As the joke goes, it's a recession when the neighbor loses his job, but it becomes a depression only when the person himself loses his job.
Most people have no clue how many companies have shut or owners have run away due to bankruptcy (and we cannot repeat and can only suggest to read our blog as many times and as many old posts as possible) so they keep repeating that hiring goes on and we really wish everyone all the best.
Thank you again and best wishes,
"Saudis and UAE locals are no longer allowed to transfer money out" -- This is incorrect. I don't think there is any restriction yet in Saudi Arabia (KSA).
ReplyDeleteHaving worked with businesses in KSA, I think the situation is not as alarming as UAE. At least KSA is not in distress, its only a slow down. Dubai's fall is KSA's gain in a sense due to social / lifestyle changes - Women driving, cinemas, music concerts etc...
"UAE and Saudi have been selling all their iconic assets since 2-3 years in distress conditions. They have absolutely no choice but to cash in." Can you help me know which iconic asset Saudi sold at loss like Mubadala did with Chrysler building.
In fact u would have heard about the demand for Aramco's bond issue.
Think KSA is still a bright spot in GCC sans the war with Yemen.
Hello,
DeleteThank you for visiting and for your comment.
No idea where you get your information from but despite this being a verbal order in Saudi, it has already appeared in the media.
Don't know if you heard that Ritz Carlton had become a jail in Nov 2017. Over a trillion dollars were siphoned off from those folks. Please don't ask for evidence. This is Saudi kingdom we are talking about.
Pretty much all assets of those folks including 34% of Bin Laden Group is gone to the kitty of the Saudi Govt. along with trillion dollars plus of thousands of royal family members. Several royal family members died but a few made it to other close by nations.
You may please refer to this:
Wealthy Saudis trying to move 9-figure sums out of the country are being intimidated by the government
https://www.businessinsider.com/alaco-wealthy-saudis-moving-nine-figure-sums-out-intimidated-2019-2
KSA has deported over 3 million expats officially. Real numbers should be higher. This is hurting every single business.
Here is just 1 example of Saudis selling:
Saudi Arabia Orders Its Fund Managers to Dump Canadian Assets
https://www.wsj.com/articles/saudi-arabia-orders-its-fund-managers-to-dump-canadian-assets-in-diplomatic-feud-1533753039
Saudi refuses to release any information on it's SWF so there is no data available in the public domain. We are aware of real estate sold along with shares under distress. It is not in the public domain anywhere as it should be.
Saudi Wealth Fund May Be World’s Least Transparent
https://www.wsj.com/articles/saudi-wealth-fund-may-be-worlds-least-transparent-1477997912
Saudi Aramco is in a tough situation trying to raise money for the Kingdom by asking for money around the world. It's not an achievement but a sign of significant distress.
They have no way of paying it back with declining sales volumes, rising deficits, restive population (13 terrorists arrested just today) and half the price oil than it was in 2014.
If the world's richest company needs to raise funds, it's time to bail out.
However, we respect your positivity and wish you all the best,
Thank you and best wishes,
Think you are confusing Ritz Carlton incident with a blanket ban on wealthy people to move money out. I have signed IC transfer orders recently to move fund to offshore Co. for a family office. If u have contacts on ground in KSA, pls double check if overseas transfer ban is for everybody or only for the 200 odd people who were in Ritz.
DeleteAgain, u failed to name any asset sold by KSA in distress. There is none. Canada selling is for other obvious reason which u know.
Aramco raising money is not to pay salaries like any other falling co. The situation is different.. They're seeking funds to acquire another co which is going to put more money in the hands of sovereign fund - which will invest for nation building.
Not sure how many contacts / client u have in KSA. But the situation on ground is far rosier than u portray.
Thank you for your comment. It is well noted.
DeleteBest wishes,
If one wants to lose teeth or decimate them, use Julphar's herbal toothpaste.
ReplyDeleteI bought it in Oman from a grocery store and threw it away after the second brush. It does something very horrible to teeth. I can't tell what but there must be heavy chemicals in there.
Not surprised to see product recalls.
Hello,
DeleteThank you for your comment and for visiting.
It is interesting to note that their quality is so horrible.
Have used some of their medication years ago but never knew that it was so horrible.
It could be that they started doing cost cutting to very low standards in the last few years but who knows.
3 of their medicines were recalled which is shocking. Don't know if they sold outside GCC because EU and US would be very upset if those products were being sold in their countries. Obviously, many counties would now ban their products or do more strict checks because UAE quality is not what it used to be any more.
Thanks for your personal experience and anecdote about the toothpaste.
Best wishes,