The Dubai-based property agency S&K Estate Agents, better known as Smith & Ken, yesterday confirmed that it has filed for bankruptcy.
All 80 staff in both its Dubai and Los Angeles offices have lost their jobs and a liquidator has been appointed to handle the firm’s affairs, according to a statement issued by a public relations company acting on behalf of one of the shareholders.
“Unfortunately we have had no other choice but to file bankruptcy and hand over accounts and any remaining income to our liquidator,” the statement from the shareholder said. “Simply put, the revenue being generated by the business drastically reduced over the first half of 2015, without enough income to cover operational costs.
It was not immediately clear what company is handling the liquidation.
“Additional support, advertising, incentives and training had been provided to existing and new agents to try and aid their growth and development to increase sales.”
S&K Estate Agents had been registered with Dubai’s Real Estate Regulatory Agency as a brokerage. At the time of going to press, Rera had not replied to requests for comment.
S&K said that “as a last resort” to find more experienced agents, it had embarked on a heavy recruitment drive during the first half of 2015, using local agents in Dubai and the United Kingdom.
“However, the fruits of this process did not transpire in time to save the organisation,” it said. “Poor service levels provided by the brokerage led to a number of complaints from clients, which deterred repeat business opportunities and created a poor reputation for the company, which is the graveyard for any serviced-based company.”
It added that current market conditions in Dubai were a factor, with the number and value of property transactions falling, and costs such as advertising, licensing and visas mounting.
On Sunday, The National reported that Dubai Police were investigating a vandalism incident at the company's offices at Concord Tower in Dubai Media City following the firm's closure.
David Godcheaux, the chief executive of Dubai-based Core Savills, said that he did not think market conditions were becoming more difficult for brokers, but he did believe smaller players would face challenges as the market matures.
“If you take Dubai as a whole, brokers have been spoiled. It’s true that salaries, advertising and other costs are increasing and margins have declined over the past couple of years, but margins are still much higher here than in London, New York or in other mature economies.
“There is still less competition here and lower overheads. Some of the brokers complaining about costs should try to open up in Singapore, Hong Kong or even in Paris.”
mfahy@thenational.ae
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Company Profile
Company name: Fine Diner
Started: March, 2020
Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka
Based: Dubai
Industry: Technology and food delivery
Initial investment: Dh75,000
Investor: Dtec Startupbootcamp
Future plan: Looking to raise $400,000
Total sales: Over 1,000 deliveries in three months
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
