UAE: Chicken, computers, building materials disappear as companies shut down overnight

Two companies have reportedly vanished from their Deira location this month, taking with them goods worth millions of dirhams, according to local businesses.

Future Star Electromechanical Works and Alpha Star Building Contracting took tonnes of building materials, 200 cartons of chicken, 250 laptops, hundreds of cellphones, and 11,731 metres of cables before shutting their shops.

The estimated loss from this 'disappearing act' has surpassed Dh12 million. The fraud was first uncovered when post-dated cheques issued by Future Star and Alpha Star began to bounce this month. When traders rushed to the companies' offices and warehouses, they found the doors locked, the entire staff and owners missing, and their phones switched off.

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Deepti Singh (name changed), an Indian businesswoman, said she lost over Dh3.5 million worth of building materials. "I moved to the UAE a little over a year ago, hoping to build a better future for me and my family. Now, everything feels like it's fallen apart."

Two weeks ago, she sent her six-year-old daughter back to her home country. “I cannot afford to stay here any longer. This has been a devastating blow for us.”

Deepti said she conducted her due diligence before entering into business with the companies. “Since the time they reached out via email in early 2024, I visited their offices and warehouses several times, met their staff, and reviewed their audit reports and bank statements. Everything seemed in place. Future Star's managers told me the orders were for a project in Oman, while Alpha Star claimed it was for a client in Abu Dhabi.”

Between May 25 and July 2, she delivered 750 metric tonnes of reinforcement bars, galvanised iron (GI) pipes, sheets, and coils to warehouses in Sharjah Industrial Area. “The payment term was 30 days. Ideally, my first cheque should have been due on June 25, but Future Star, to whom I supplied first, requested to extend it by a few more days due to the Eid holidays. So, my first cheque from them was dated July 5, and from Alpha Star, July 4."

At 8.20pm on July 2, Deepti delivered the last orders to Alpha Star. However, when she returned at 9.30am the following morning to deliver some leftover material, she found the warehouse empty. She rushed to Future Star's warehouse, only to find a similar sight.

“In under 13 hours, thousands of metric tonnes of building materials had vanished without a trace," she said. "My goods alone would have required more than 10 trucks to transport."

Outside the shuttered offices of Future Star and Alpha Star, Deepti met other business owners, including one who said he lost 450 metric tonnes of building materials worth over Dh2 million. Around 40 of these business owners have now formed a WhatsApp group.

Many business owners who have since filed police complaints are wary of revealing their identities for fear of being hounded by creditors. “If word spreads in the market that we have lost money, our suppliers will panic and start demanding immediate payments,” one business owner explained.

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