NMC Health, the UAE's largest hospital group, hid billions in debt and collapsed

NMC Health was the largest private healthcare operator in the United Arab Emirates and a member of the FTSE 100. It grew rapidly through acquisitions, expanding from a single clinic in 1974 to operations across 19 countries. In December 2019, short-seller Muddy Waters published a report alleging that NMC had inflated cash balances, overpaid for assets and understated debt.

NMC initially denied the allegations. An internal review later uncovered that the company had concealed billions of dollars in borrowings. By March 2020, NMC admitted to at least $2.7 billion of undisclosed debt on top of its reported $2.1 billion, taking total debt to roughly $5 billion and eventually revealing around $6.6 billion. Much of the hidden borrowing had been used for unauthorised purposes, and the company had little cash left to service the debt.

NMC's shares were suspended in February 2020. On 8 April 2020, the company was placed into administration in the United Kingdom. The scandal wiped out shareholders, triggered criminal investigations in the UAE, and became the largest corporate fraud case in the Gulf's modern history.