Salvadoran President Nayib Bukele delivers a press conference at a hotel in San Salvador, on February 28, 2021. AFP
Salvadoran President Nayib Bukele delivers a press conference at a hotel in San Salvador, on February 28, 2021. AFP
Salvadoran President Nayib Bukele delivers a press conference at a hotel in San Salvador, on February 28, 2021. AFP
Salvadoran President Nayib Bukele delivers a press conference at a hotel in San Salvador, on February 28, 2021. AFP

Who is Nayib Bukele, the 'world's coolest dictator'?


Sara Ruthven
  • English
  • Arabic

President Nayib Bukele won a landslide victory in El Salvador at the weekend, riding a wave of popularity over his strongman approach to security, despite criticism over human rights abuses.

Mr Bukele, 42, won with about 83 per cent of the vote, far surpassing his closest competitor, who received 7 per cent.

The self-proclaimed “world's coolest dictator” was first elected in 2019, presenting himself and his New Ideas party as the younger, hipper alternatives to the stale, corrupt traditional parties and leaders.

His youth and social media savvy were paired with a vow to eliminate gang violence and fix the economy – but who is Mr Bukele and has he delivered on his promises?

Palestinian heritage

The streets of the capital San Salvador were thronged with supporters on Sunday night, with many wearing the blue and white of the national flag and others sporting keffiyehs, in a nod to Mr Bukele's Palestinian heritage.

His paternal grandparents were Palestinian Christians, but his father, a businessman, converted to Islam and became a champion of the Palestinian cause.

Palestinian immigrants began moving to Central America in the early 20th century, right around the collapse of the Ottoman Empire, with later waves coming after the Nakba in 1948 and the 1967 Arab-Israeli war.

Supporters of Nayib Bukele celebrate after the presidential election in San Salvador, El Salvador. Bloomberg
Supporters of Nayib Bukele celebrate after the presidential election in San Salvador, El Salvador. Bloomberg

The Palestinian community thrived in El Salvador, successful not only commercially but also politically – a number of the country's high-ranking politicians, including two presidents so far, have been of Arab descent.

Although Mr Bukele routinely expresses pride in his roots, he has mostly toed the line when it comes to El Salvador's relations with Israel – that is, friendly, while also maintaining diplomatic relations with Palestine.

While serving as mayor of San Salvador, he visited Israel for an international mayoral conference. After the Hamas attacks of October 7, he expressed strong support for Israel.

“As a Salvadoran with Palestinian ancestry, I'm sure the best thing that could happen to the Palestinian people is for Hamas to completely disappear,” he wrote on X.

“Those savage beasts do not represent the Palestinians. Anyone who supports the Palestinian cause would make a great mistake siding with those criminals.”

Violence

Over the course of his mandate, Mr Bukele has intensified the government's approach to security in the country, which had one of the highest murder rates in the world.

The government claims El Salvador now has a murder rate equal to those of the US states of Maine or New Hampshire, although analysts have questioned those figures.

“We … changed the murder capital of the world, the world's most dangerous country, into the safest country in the Western Hemisphere,” the President said on Sunday.

Street gangs have long terrorised the country, with groups such as MS-13 engaging in kidnapping, extortion and murder.

The high level of insecurity has pushed tens of thousands of Salvadoreans out of the country in search of a better life in the US and elsewhere.

In 2022, after the national murder rate hit a record high, Mr Bukele announced a war on gangs and a state of emergency.

About 100,000 people have been swept up in police raids and jailed since, according to Insight Crime, many of them held in the so-called Terrorism Confinement Centre, a new maximum-security prison with capacity for tens of thousands of inmates.

  • Soldiers stand guard during the presidential and legislative elections in San Salvador, El Salvador. AFP
    Soldiers stand guard during the presidential and legislative elections in San Salvador, El Salvador. AFP
  • Aerial view of the Campanera neighbourhood in Soyapango, a stronghold of the Barrio 18 gang for decades. AFP
    Aerial view of the Campanera neighbourhood in Soyapango, a stronghold of the Barrio 18 gang for decades. AFP
  • Soldiers patrol the Campanera neighbourhood during the presidential and legislative elections. AFP
    Soldiers patrol the Campanera neighbourhood during the presidential and legislative elections. AFP
  • Inmates inside a cell at the Terrorism Confinement Centre mega-prison in Tecoluca. AFP
    Inmates inside a cell at the Terrorism Confinement Centre mega-prison in Tecoluca. AFP
  • Inmates belonging to the MS-13 and Barrio 18 gangs arrive at the mega-prison. AFP / El Salvador's Presidency
    Inmates belonging to the MS-13 and Barrio 18 gangs arrive at the mega-prison. AFP / El Salvador's Presidency
  • Gang members inside a cell at the mega-prison. AFP
    Gang members inside a cell at the mega-prison. AFP
  • Members of the MS-13 and Barrio 18 gangs in custody at a prison in Ciudad Barrios. AFP / El Salvador Presidency
    Members of the MS-13 and Barrio 18 gangs in custody at a prison in Ciudad Barrios. AFP / El Salvador Presidency
  • A man detained over alleged gang links is escorted by an officer of the National Civil Police at the San Salvador penal centre. AFP
    A man detained over alleged gang links is escorted by an officer of the National Civil Police at the San Salvador penal centre. AFP
  • A police officer checks a man with tattoos during an operation to find gang members in Santa Ana. AFP
    A police officer checks a man with tattoos during an operation to find gang members in Santa Ana. AFP
  • Soldiers and police frisk transport users in an operation in search of gang members in Santa Ana. AFP
    Soldiers and police frisk transport users in an operation in search of gang members in Santa Ana. AFP
  • A member of the military stands guard behind two alleged gang members in San Salvador. Bloomberg
    A member of the military stands guard behind two alleged gang members in San Salvador. Bloomberg
  • People detained over alleged gang links are escorted to the San Salvador penal centre. AFP
    People detained over alleged gang links are escorted to the San Salvador penal centre. AFP
  • A woman holds a poster with pictures of people who died in detention during a protest outside the Attorney General's Office in Antiguo Cuscatlan. Reuters
    A woman holds a poster with pictures of people who died in detention during a protest outside the Attorney General's Office in Antiguo Cuscatlan. Reuters
  • A woman poses with a picture of her husband who was captured under the state of emergency and later died in prison. AFP
    A woman poses with a picture of her husband who was captured under the state of emergency and later died in prison. AFP
  • A woman shows a photo of her son who was detained during the state of emergency. AFP
    A woman shows a photo of her son who was detained during the state of emergency. AFP

Critics say the emergency measures have eroded human rights in the country, with police free from having to inform people of their rights or the reason for their arrest, and detainees allowed to be held for up to 15 days without seeing a judge.

Mr Bukele's election is “a clear sign that the cost in respect for human rights and checks on executive power has become secondary for Salvadoreans, compared to the dramatic gains in public safety”, said Gustavo Flores-Macias, professor of government and policy at Cornell University.

Mr Bukele has also made major political reforms that some say have led the country farther down the path towards authoritarianism.

Much like Donald Trump in the US, he has occasionally ruled by Twitter fiat, firing a number of officials through the social platform after he was elected.

And he used his New Ideas party's supermajority in the Legislative Assembly to pack the courts with supporters and reform state institutions, with the top court circumventing the constitution to allow him to run for a second consecutive term.

The Bitcoin gamble

While achieving success in bringing violence under control, Mr Bukele was not as fortunate in fixing the economy, as he came into power right at the onset of the Covid-19 pandemic.

About a third of the population of El Salvador lives in poverty, although rates have been declining over the past several years.

El Salvador, like many other countries, was hit hard by the pandemic and many more people slipped below the poverty line.

And while it came back strongly after the pandemic-driven decline, growth over the past year has mostly stagnated.

The country continues to register the slowest economic growth in Central America.

Mr Bukele has taken a unique approach to fostering economic growth and attracting investment. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender.

The government bought $6.4 billion worth of the cryptocurrency and made a $1.5 billion in profit after the decision, according to DailyCoin.

What is Bitcoin and how did it start? – video

The Chivo Wallet app, released alongside the decision to adopt Bitcoin, aimed to bring the digital currency to the masses, with the incentive of $30 in Bitcoin available to all those who downloaded the app.

But the cryptocurrency experiment has largely been viewed as a failure, with the government losing about 37 per cent of its investment, according to El Pais.

Hundreds of Chivo accounts were hacked and the incentive money was stolen, along with the account owners' identities, after the introduction.

A year after its advent, “usage of Bitcoin for everyday transactions is low and is concentrated among the banked, educated, young and male population”, researchers at the University of Chicago's Becker Friedman Institute wrote in a 2022 working paper.

Despite the setbacks, however, Mr Bukele seems dedicated to making El Salvador a cryptocurrency haven.

His landslide re-election – along with his party again clinching the majority of seats in the Legislative Assembly – means he will be able to take another shot at making the country run on Bitcoin.

Scoreline

Saudi Arabia 1-0 Japan

 Saudi Arabia Al Muwallad 63’

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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Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

Updated: February 08, 2024, 2:48 PM