Senator Robert Menendez, a Democrat from New Jersey, has been indicted on a string of corruption charges. EPA
Senator Robert Menendez, a Democrat from New Jersey, has been indicted on a string of corruption charges. EPA
Senator Robert Menendez, a Democrat from New Jersey, has been indicted on a string of corruption charges. EPA
Senator Robert Menendez, a Democrat from New Jersey, has been indicted on a string of corruption charges. EPA


Senator Bob Menendez's looming fall looks set to boost US-Turkey ties


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September 25, 2023

US Senator Bob Menendez visited Cyprus last month to speak at a Cypriot diaspora summit, meet Cypriot President Nikos Christodoulides and perhaps retrace the origins of his Armenian-American wife Nadine, whose mother was born on the island.

The New Jersey Democrat, who has in recent years often opposed US deals with Turkey while backing Greece and its allies, received an award from the Greek Cypriot church for boosting the Greek Cypriot struggle for justice – the cherry on top of his late summer trip.

But the change in season has brought a change in fortune: federal authorities last week handed Mr Menendez and his wife a three-count federal indictment that evokes the tawdry New Jersey of fictional TV mob boss Tony Soprano, accusing them of leveraging his position in an array of schemes that stretch to the Middle East.

The first charge is that Mr Menendez, the most powerful foreign policy figure in Congress as chair of the Senate Foreign Relations Committee (SFRC), accepted bribes to boost aid and arms sales to Cairo in an effort to encourage the Egyptian government to approve Egypt-born New Jersey businessman Wael Hana’s monopoly over the import of halal meat into Egypt.

Mr Menendez is also charged with seeking to undermine a criminal investigation into businessman Jose Uribe and influence the president’s choice for US Attorney in his district to help his wife’s friend. The indictment suggests Mrs Menendez, who was unemployed when the couple first met at a pancake house in early 2018 and would soon default her mortgage payments, was the main driver of the double-dealing.

The charge sheet details how Mr Hana, who claimed to have connections in the Egyptian government, was Nadine’s old friend, how she allegedly set up Mr Menendez’s meetings with officials from Cairo, and how she pressed Mr Hana for payments for services rendered. The indictment also shows Mr Menendez essentially appearing to do his wife’s and Mr Hana’s bidding.

Expect a quick fall for the 69-year-old whose rise was lightning-fast. The son of Cuban immigrants, Mr Menendez served on a New Jersey school board at 20 years old. A dozen years later, he was voted Union City mayor before moving on to the state senate and US Congress.

Expect a quick fall for the 69-year-old whose rise was lightning-fast

Since becoming a senator in 2006, he had regularly pushed for recognition of the “Armenian Genocide” as it is described in the US – an effort that succeeded a few years ago. But beyond that, his pre-2018 positions evinced no favouritism towards Armenia or Greece or animus towards Turkey.

Given her apparent influence on him, one starts to wonder if Mr Menendez’s defining policy stance over the past five years may have been driven in part by his wife, an Armenian with links to Greek Cyprus. Back in 2009, he even criticised then-Cypriot President Dimitris Christofias, pointing out the contradiction in the Cypriot leader’s denunciation of Turkey’s human rights violations in Cyprus while ignoring similar violations in Cuba.

A decade later, Turkey’s rivals had become the apple of his eye. In mid-2019, Mr Menendez introduced the Eastern Mediterranean Security act to strengthen ties between the US, Israel, Greece and Cyprus, and lift the long-standing arms embargo on Cyprus. The Senate passed the bill and Mr Menendez later received the highest civilian honours of both Greece and Cyprus.

Within weeks of Turkey expressing its desire to buy US F-16s in late 2021, Mr Menendez voiced his dissent, citing Ankara’s rights record and ties to Russia. Turkey had been removed from America’s F-35 programme in 2019 for buying a Russian missile defence system and Ankara’s $20 billion F-16 proposal was seen as a face-saving offer from the Nato ally. Yet Mr Menendez has repeatedly called for F-35 sales to Greece while maintaining his SFRC-chair hold on the F-16s, even after National Security Adviser Jake Sullivan cleared the way for the deal after Turkish President Recep Tayyip Erdogan greenlit Sweden’s Nato accession in July.

As I detailed last week, the US has of late boosted military ties with Greece, Cyprus and Armenia, while levying sanctions against Turkey, even though entities in all these countries seem to have enabled Russian sanctions evasions. As SFRC chair, it’s reasonable to expect Mr Menendez had some influence on these policies.

The long-time senator may have come to his regional views on his own, and perhaps in time they will be proven correct. It’s worth mentioning that some of Turkey’s leaders are alleged to have dabbled in graft, notably in a 2013 corruption scandal that felled three ministers and a series of accusations two years ago from an exiled convicted criminal.

Yet Mr Menendez has his own history of influence peddling and illicit dealings. In 2010, he urged Federal Reserve Chair Ben Bernanke to rescue a New Jersey bank run by executives who were big donors – a move one bank regulator called “grotesquely inappropriate”.

Mr Menendez reportedly received donations from the People’s Mujaheddin of Iran (MEK) when the US still listed the group as a terror organisation. And the latest indictment comes six years after an unrelated corruption trial ended in a hung jury and 17 years after he faced a federal inquiry in relation to payments from a non-profit group.

Set to appear in a Manhattan court with his co-defendants on Wednesday, Mr Menendez denies all charges. But he has stepped down from the SFRC and faces a tough primary fight in the lead-up to 2024 elections. New Jersey Governor Phil Murphy and most other state officials have urged him to resign.

Geopolitically, the timing could hardly be better. Turkey and Greece are mending ties, as highlighted by their leaders’ meeting last week in New York. And with Turkey’s parliament expected to approve Sweden’s Nato membership next month, the US could greenlight Ankara’s F-16 purchase now that the deal’s most vocal foe looks set to exit the stage.

In 2021, Mr Menendez told Congress that US foreign policy needed to be centred on “democracy, human rights, and the rule of law”. His departure seems likely to inch Washington closer to that goal.

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The biog

Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

'Jurassic%20World%20Dominion'
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UAE currency: the story behind the money in your pockets

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.”

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5 Sebastian Vettel, Ferrari, 1 win, 230 points

Updated: September 26, 2023, 6:13 AM