Gamal Mubarak, the son of former Egyptian President Hosni Mubarak, rebuked corruption allegations against his father in a YouTube video.
Gamal Mubarak, the son of former Egyptian President Hosni Mubarak, rebuked corruption allegations against his father in a YouTube video.
Gamal Mubarak, the son of former Egyptian President Hosni Mubarak, rebuked corruption allegations against his father in a YouTube video.
Gamal Mubarak, the son of former Egyptian President Hosni Mubarak, rebuked corruption allegations against his father in a YouTube video.

Former Egyptian president Mubarak's son says family innocent of corruption charges


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The son of former Egyptian president Hosni Mubarak has said he and family members were innocent of corruption charges made in international courts after the country’s 2011 popular uprising forced his father to step down.

In a video statement posted on Tuesday, Gamal Mubarak said recent court decisions in the EU and elsewhere demonstrated their innocence — though he did not explain how the family had amassed its significant wealth.

In February, a massive leak of Credit Suisse clients’ information showed Gamal Mubarak and his brother, Alaa, to have held at least $197.5 million in the bank at one point.

“The facts have now been established and the false allegations have been unequivocally rebutted. The historical record has thus been independently and judicially corrected,” Gamal Mubarak, the former president's one-time heir apparent, said in the video released on YouTube.

He blamed Egyptian judicial authorities for taking the issue to international courts.

The deposed president’s family has spent much of the 11 years since the uprising trying to rehabilitate its image.

The 2011 protests were built on calls for an end to perceived systematic police brutality, deep-rooted embezzlement and government corruption in Egypt. It was also sparked by growing concerns that Gamal Mubarak was being readied to succeed his father, who was in power for 29 years.

The international anti-corruption group Transparency International has estimated that as president, Mubarak stole some $70 billion in public funds.

The former president died in 2020, aged 91.

Ousted Egyptian president Hosni Mubarak watches his supporters from the Maadi military hospital in Cairo during celebrations of the 43rd anniversary of the 1973 Arab-Israeli war on October 6, 2016. Reuters
Ousted Egyptian president Hosni Mubarak watches his supporters from the Maadi military hospital in Cairo during celebrations of the 43rd anniversary of the 1973 Arab-Israeli war on October 6, 2016. Reuters

In April, Swiss prosecutors decided not to file charges after concluding a decade-long investigation into alleged money laundering and organised crime linked to Mubarak’s circles in Egypt. They also said they would release some $430m frozen in Swiss banks.

The same month, the General Court of the European Union ruled that the rights of Mubarak’s wife, two sons and their wives had not been respected during a local Egyptian investigation of his assets, on which the prosecution was depending.

The ruling meant EU sanctions on the Mubaraks’ accounts were deemed unlawful and lifted. Gamal Mubarak said his family was being reimbursed for their legal costs related to the case.

Ruling condemned by global transparency movement

Transparency International condemned the move, saying it would show corrupt leaders around the world that they can act with impunity.

The EU and Swiss investigations were part of a series of court proceedings against the Mubaraks following the mass protests. The father and the two sons were first detained in April 2011, two months after the uprising forced Mubarak to step down as part of the Arab Spring protest movement.

The Supreme Military Council led by the late Field-Marshal Mohammed Tantawi, Mubarak's longtime defence minister, took over the reins of power from Mubarak but later gave way to President Mohammed Morsi after elections in 2012. Morsi, an Islamist from the now-banned Muslim Brotherhood, was deposed by the military amid street protests against his divisive, one-year rule.

Following a lengthy trial, Hosni Mubarak was acquitted of killing protesters during the 18-day uprising against his autocratic rule.

The two sons and their father were sentenced to three years in prison following their conviction of embezzling funds set aside for the restoration and maintenance of presidential palaces, using the money to upgrade their private residences.

Former Egyptian President Hosni Mubarak, seated centre left, and his two sons, Gamal, left, and Alaa attend a hearing in a courtroom in Cairo, Egypt in 2013. AP
Former Egyptian President Hosni Mubarak, seated centre left, and his two sons, Gamal, left, and Alaa attend a hearing in a courtroom in Cairo, Egypt in 2013. AP

The sons were released in 2015 for time served, while Mubarak walked free in 2017. The trio paid back to the state the money they embezzled.

The sons were briefly detained in September 2018 pending their trial on charges of stock market manipulation. They were released on a bail of $5,600 each after an appeals court accepted a motion moved by their defence lawyers to remove the judge who ordered their detention. They were acquitted in 2020.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: June 17, 2023, 7:22 AM