While the success stories of billionaires often inspire, some journeys take unexpected turns that end in bankruptcy, offering sobering lessons about risk, leverage, and governance. One such case is that of former UAE billionaire Khalifa Al Muhairi.
In 2018, Forbes estimated Al Muhairi’s net worth at $1.5 billion. At the time, he oversaw a portfolio of companies providing financial and investment services to others. Just three years later, in 2021, Al Muhairi filed for bankruptcy, marking a dramatic reversal of fortune.
Earlier this year, Bloomberg reported that a luxury townhouse owned by Al Muhairi in London’s Kensington district has been listed for sale for $34 million as part of bankruptcy proceedings. The development has renewed attention on the collapse of NMC Health, a healthcare group in which he held a significant stake.
Who Is Khalifa Al Muhairi?
Khalifa bin Butti bin Omair Al Muhairi began his career at Abu Dhabi National Oil Company, gaining early experience in finance after graduating from Suffolk University in Boston.
In 2006, he became CEO and chairman of Brokerage House Securities, a financial brokerage firm he co-founded that provides services to companies listed on the Dubai Financial Market and the Abu Dhabi Securities Exchange.
In 2007, he founded One Financial Markets, a UK-based brokerage licensed by the Financial Conduct Authority, with operations spanning the Middle East, Europe, South America, Central Asia, and Southeast Asia.
A year later, in 2008, Al Muhairi established the KBBO Group in the UAE. The group grew to include Emirates Hospitals Group, which operates hospitals and clinics; the Consumer Products Group, a retail-focused arm that includes brands such as Freshly Frozen Foods; and an investment division holding interests across multiple sectors and geographies.
A Short-Lived Billionaire Run
Al Muhairi debuted on Forbes’ annual list of billionaires in 2018 with a net worth of $1.5 billion, becoming the second-youngest Arab billionaire at age 39. His appearance on the list was brief. His net worth declined to $1.2 billion in 2019, and he dropped off the rankings entirely in 2020, the same year his business empire unraveled.
Before the collapse, Al Muhairi held several high-profile positions. He served as chairman of Travelex Group, Infinite Investment Company, First Energy Bank, and Al Salam Bank Bahrain. He was also executive vice chairman of Centurion Investment Company. Al Salam Bank Bahrain was later rebranded as Al Salam Bank in October 2021.
The Collapse of an Empire
The downfall began in December 2019, when Muddy Waters Research published a report accusing NMC Health of fraud and manipulation of its financial statements. The report alleged that Al Muhairi was directly involved in the misconduct and cited links to First Energy Bank, where he served as chairman.
The revelations triggered the collapse of NMC Health and wiped out the fortunes of three billionaires connected to the company. Alongside Al Muhairi, Indian entrepreneur B. R. Shetty, founder of NMC Health, and Saeed bin Butti Al Qebaisi, a major shareholder, both fell off Forbes’ billionaire rankings in 2020.
NMC Health later admitted in March 2020 that it had concealed more than $2.7 billion in debt, later revising total liabilities to $6.6 billion owed to around 80 financial institutions globally, including Abu Dhabi Commercial Bank. In April 2020, the company was delisted from the London Stock Exchange, where it had been listed since 2012, and was placed under administration by a British court.
In March 2022, NMC successfully exited administration following a debt restructuring. Abu Dhabi Commercial Bank received 37.5 percent of transferable exit instruments under a $2.25 billion facility issued by a new holding company.
During the crisis, Al Muhairi resigned from several roles. He stepped down from NMC Health’s board in February 2020 and resigned as chairman of Al Salam Bank Bahrain, citing special reasons without further detail.
Bankruptcy and Restructuring
Al Muhairi filed for bankruptcy in the UAE in July 2021, a process that involved the liquidation of personal and corporate assets. In September 2023, Deloitte announced that a UAE court had approved the restructuring of KBBO Group and its related entities after creditors endorsed the plan under the UAE Bankruptcy Law.
The restructuring of Emirates Hospitals Group included issuing new bonds to creditors to raise $40.8 million (AED 150 million) to settle debts, alongside an asset monetization strategy aimed at avoiding liquidation and preserving approximately 2,000 jobs.
Earlier this year, Bloomberg reported that receivers appointed under the bankruptcy proceedings are seeking to sell Al Muhairi’s Kensington townhouse for $34 million, along with a second London property valued at around $520,000. Combined mortgages on the two properties exceed $22 million.
