A Qatari businessman whose family members are closely linked to the country’s 2022 World Cup plans has refused to pay a $4 billion debt despite losing a series of legal actions.
The last opportunity for Sheikh Fahad bin Ahmad Al Thani to appeal is due to expire at the end of this month as British and US investors seek to claw back an 11-year debt from the businessman and his Fast Trading Group.
Christopher DeLise, the US-based director of Delta Capital Partners, told The National that the failure to hand over the funds called into question Qatar's commitment to uphold international legal judgments.
The Fast Group director is the brother of Khalid, Jassim and Hamad, founder members of Al Gharafa FC, a prominent local club.
Its home ground, Thani bin Jassim Al Gharafa Stadium, recently hosted the Asian Champions league.
Jassim bin Thamer, a cousin, is the president of the club. Sheikh Fahad's mother, Noor, was a close relative of the current emir, Sheikh Tamim.
Mr DeLise said he had personal assurances from Qatar’s Attorney General Ali bin Mohsen that the case would proceed without fear or favour.
“We have purposely avoided implicating other members of the royal family [in connection with] this individual or the World Cup [but] this individual did not act alone; he continued to work with senior members of the royal family,” he said.
“I was told personally by the attorney general of Qatar ‘you’ll get justice through the court system’.
"But this draws a spotlight on the world stage that you can’t get justice by making arguments in Qatar’s courts.”
A British High Court made the award against Sheikh Fahad in 2018 and ruled that the sum due was likely to be $6bn after taking interest into account.
That judgment was accepted by the Qatari court system the following year and the judges said the businessman’s assets had been frozen.
At the end of October, the country’s court of appeal said it could not reverse the full recognition of the UK judgment and that it had validity under Qatari law.
“We have tried to persuade Qatar through diplomatic means as well as through direct negotiations, but I have to say implementation of international rulings by Qatar does not seem to be what they claim,” Mr DeLise said.
Seized funds should be turned over to creditors right away, he said.
“It has now been more than a year and nothing is been turned over,” Mr DeLise said.
Delta believes it can now establish that Sheikh Fahad owns assets in the UK.
As frustration mounts with the lack of action – the loans were first extended by an Anglo-Spanish private office to fund the expansion of the Qatari business – Mr DeLise plans to return to legal action in the UK.
EA Sports FC 24
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
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The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
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.”
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
Brief scoreline:
Al Wahda 2
Al Menhali 27', Tagliabue 79'
Al Nassr 3
Hamdallah 41', Giuliano 45 1', 62'
