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COVER COVER A man for all seasons Over the course of 33 years, Sheikh Mohamed Bin Issa Al Jaber has created from scratch a $12bn empire, encompassing real estate development, oil and gas and agro-industries. But last year, a variety of forces made an unsuccessful attempt to topple his empire. In a rare interview, the founder of MBI International lifts the lid on his costly battles with some Arab regimes, and how through the biggest storm of his life, he has emerged stronger than ever. BY ANIL BHOYRUL 20 arabian business | vol. 13/02 21 COVERH S EIKH MOHAMED BIN ISSA AL JABER SHEIKH MOHAMED BIN ISSA AL JABER COVER HEIKH MOHAMED AL JABER GETS straight to the point. “One thing I learned over the years is that people never expect a businessman to actually be transparent and honest. They Sthink there must be something between the lines, something else going on. But then those people underestimate me. I won the battle. And I won because I had one weapon – the truth.” In truth, it’s really has been one hell of a battle. Just weeks before our meeting, the empire built by the founder of MBI International looked to be on the ropes and heading for the canvas. A UK High Court judge had frozen his $12bn worth of assets around the world, as the full force of a vicious court battle with South Africa's Standard Bank took effect. The Saudi-born tycoon had spent 33 years building from scratch a conglomerate encompassing hotels and resorts, oil and gas and agro-industries. It had made him the world’s second-richest Arab business- man, and along the way he had become a high-profile philanthropist, donating millions to promote good governance and anti-corruption, higher education, women’s rights, public-private partner- ships and interfaith dialogue. The smartest streets in London, Paris and Vienna each had one of Al Jaber’s trademark hotels. But by early November last year, the knives were being sharpened and the obituaries to his businesses were being drafted. As Standard Bank's $150m case against Al Jaber started, a global asset- freezing order resulted in parts of his JJW Hotels & Resorts chain being forced into administration. Just how long could his other entities, including the AJWA Group, Jadawel International and Continentoil, continue unscathed? Down, momentarily. But out? Think again. Although initially losing the case against Standard Bank, Al Jaber surprised everyone by suddenly announcing the case had now been settled, with the asset freeze his office in Vienna, but Al Jaber has lost to disappear.” On the Arab governments His recent battle with Standard Bank lifted. A staggering $1.5bn had been added none of his legendary charm and warmth. that have fallen: “They tried to mislead is now confined to the history books, to the MBI Group from shareholders funds, The handshake is firmer than ever, his will their own people claiming that they will mere details on a High Court judgment. and the Scotsman Hotel Group – forced “I still say it will be 2018 to succeed even greater, and talk of retire- make them the wealthiest nation. They Although the case only made the headlines into administration after the asset freeze for the market not to ment summarily dismissed. But most of all, thought they could carry on just giving in the past two months, he reveals that the – was being bought back with 100% equity. Al Jaber is doing what he does best: shoot- them numbers and hope, and deny them real battle has actually been going on for Another $100m is being pumped into that recover, but to start ing from the hip, firing from all cylinders, their right to freedom.” On the Arab Spring: several years. And it is not a mere dispute group, with more big deals on the cards in recovering. These markets and taking no prisoners. On his recent “It will carry on and might touch countries over payments due to a bank, along with the coming months. battles: “I had principles which upset a lot that people never thought it would reach.” the usual claims and counter claims. It is, Make no mistake, Sheikh Mohamed Al were built on illusions, not of people and a lot of governments.” On And on the future of the GCC property he says, something far bigger: during his Jaber is back, and back with a bang. The true economic figures” his enemies: “I was a witness to their bad market? “Wait till 2018 before it starts, and journey to the top, his many interests in cold winter winds maybe blowing outside history and in their eyes, the witness had I mean just starts, to recover.” other areas – notably speaking his mind 22 arabian business | vol. 13/02 23 COVER SHEIKH MOHAMED BIN ISSA AL JABER SOHEIKH M HAMED BIN ISSA AL JABER COVER “I was not part of the new business cartel that was markets in the countries of operation and developing from 2005...I was a witness to their bad expanding the export network. In The MBI domestic markets, production of history and in their eyes, the witness had to disappear” own-label supermarket products and Empire overseas brands made under license will increase. An expanded distribution network will permit even more exports to JJW HOTELS & RESORTS Europe, Africa and Asia. The Scotsman Hotel Grand Hotel Wien Since it was founded in the late 1980s, JADAWEL JJW Hotels has built a strong portfolio INTERNATIONAL of hotel brands from economy through to mid-range and luxury. Unlike many The Group has extensive experience in other hotel operators, all JJW hotels are developing major projects with wholly owned assets. The group has 27 governments and leading international hotels spread across Austria, France, the companies. UK, Portugal and Egypt. Working with governments and Today JJW is seeking to focus on international corporations, the Group's expansion of the luxury 5 star hotel current initiatives include the provision portfolio. In recent years, JJW has of residential cities - operated and acquired the highly sought after 'Grand maintained by Jadawel - and the Hotel Wien in Vienna, along with 'The development of substantial leisure Berners' in London and the 'Amarante resorts and a number of other projects Beau Manoir' in Paris. JJW is equally in various sectors around the Middle active in luxury hotel acquisitions in East. Current clients include the KSA, resort locations with prestigious hotels Boeing, Hughes, Raytheon and British joining the all suite hotel 'Amarante Saif Gaddafi: Once heir to the leadership of Libya, now awaiting trial at the International Criminal Court. The Arab Spring countries will see their economies bloom in the next decade, Al Jaber believes. Aerospace. Formosa Park' in the Algarve portfolio. The recent acquisition of The Scotsman on Arab politics, as well as giving financial Gaddafi saw me as a threat in philanthropy 1990s, Al Jaber has had a huge influence condemning Saif Gaddafi’s attempts to CONTINENTOIL Hotel Group is in line with the Group’s assistance to many causes he considers and in business – the two areas that he in promoting the leadership skills of young rebrand himself, and attacking the Libyan The company was incorporated in 1994 plans to build the portfolio at the luxury worthy – has cost him dear. In particular, wanted to be a champion of. And this is the Arabs at elite institutions in London. This regime’s donations being made to univer- to engage in business activities in the end of the hotel market. he lays the blame at the door of the former problem with many governments because quickly expanded to include programmes sities in the UK. He was hugely critical of oil and gas industry on the basis of a Gaddafi and Mubarak regimes in Libya and they want to eliminate a businessman who at elite institutions of higher education, the Gaddafi Foundation which tried to business model of asset management AJWA GROUP Egypt amongst others, with whom he has has international recognition and who including the American University of mirror the principles of his own MBI Al along the hydrocarbon value chain, FOR FOOD INDUSTRIES had long-running conflicts. speaks his mind.” Cairo, the American University of Beirut, Jaber Foundation, suggesting there was bundling package services and The Group operates throughout the “I kept to my principles which upset a As the founding patron of the London University College London, the London nothing philanthropic about its purpose. technology products through strategic Middle East and exports to Europe, Asia lot of people and a lot of governments. Yes, Middle East Institute at SOAS (School School of Economics (LSE), University of None of this, says Al Jaber, impressed alliances with world class services and and Africa. Twelve factories in Jeddah, there are governments who had an agenda. of Oriental and African Studies) in the Westminster and a host of other prominent the Gaddafi regime, which soon began a technology providers and construction Dammam, Tunisia and Egypt produce They couldn’t differentiate between their universities in the UK and Europe. concerted campaign to destabilise him. companies. and distribute frozen foods, rice wealth and their public wealth. They saw When it came to the movers and shakers “Those people, they want to compete Continentoil’s mission “is to assist products, grains, vegetable oils and me as a threat to their existence. It is on “I had principles which in the UK academic world, there are reck- with anything they see. They want be the resource owners and operators with the ghee for shipment and export from the record that the old regime in Libya had upset a lot of people and a oned to be few more respected and influ- best politician, the best businessman, the optimization, development and Group operated ports at Yanbu, Jeddah, worked against me for the last eight years.

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