Abraaj group managed around $13 billion in assets by 2017. With the beginning of 2018, downfall of Abraaj started and most recently Abraaj is dealing with check bounce cases to the amount of $217 million (one check).
Surat city is one of the textile hubs in India. Almost on a daily basis one textile shop opens and one closes. The downfall of Abraaj group is similar to that of a textile shop in Surat. As long as the money keeps rotating, people lend you raw materials on credit but for whatever reason if the money rotation cycle is disturbed, it gets out of control leading to check bounce and ultimate closure of shop. One of the most common reason of things getting out of control is over production or over rejection of finished products.
As long as new money was flowing into Abraaj, it was going good, as the flow of new money stopped, Abraaj (Tower in Arabic) collapsed like a castle of sand. The mess at Abraaj exposed where super rich like Bill Gates, big pension funds and other High Net worth Individuals park their money.