Written by Shane McGinley

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UAE most likely destination for Mubarak’s billions

Gulf state seen as safe haven for former Egyptian president’s substantial wealth, say experts

By Shane McGinley
Egyptian President Hosni Mubarak addresses on December 25, 2010 the annual conference of the ruling National Democratic Party in Cairo after it won a sweeping electoral victory in a poll boycotted by the opposition, presenting himself as a man firmly in charge of both party and government less than a year before Egypts presidential electio
Egyptian President Hosni Mubarak addresses on December 25, 2010 the annual conference of the ruling National Democratic Party in Cairo after it won a sweeping electoral victory in a poll boycotted by the opposition, presenting himself as a man firmly in charge of both party and government less than a year before Egypts presidential electio

The UAE is the most likely destination for the assets of ousted Egyptian president Hosni Mubarak, Middle East experts have said, thought the 82-year-old himself may still be in Cairo.

The former ruler is thought to command a family fortune of up to $70bn, and will be searching for a safe haven for his wealth, said Christopher Davidson, professor of Middle East politics at Durham University.

“I suspect [Mubarak’s sons and wife] will be headed to the UAE and I suspect their assets are there,” he told Arabian Business.

“There are already unconfirmed reports that assets and gold [Mubarak] had held in the west has been moved to the UAE, where it will be quite safe.”

The Gulf state on Sunday moved to rebuff media speculation that the former president had fled to the UAE after ending his 30-year reign.

Mubarak is understood to have moved with his family to Egypt’s Red Sea resort city of Sharm El Sheikh just hours before stepping down, but his current whereabouts remain unknown.

In his last address to the nation last Thursday, Mubarak pledged to “die on the soil of Egypt.”

Theodore Karasik, from the Dubai-based Institute for Near East and Gulf Military Analysis, said UAE authorities will be alert for any relocation of assets owned by Mubarak.

“There is going to be a point in time when the UAE governmental authority in the central bank will put out edits watching for this money and freezing it and returning it [to Egypt],” he said.

“Remember this issue is not about money laundering in the UAE it is about investments under an old order and now a new order has emerged so it is not a finger-pointing exercise at the UAE.”

The full extent of Mubarak’s assets remains unknown, though he is thought to have built up a substantial real estate portfolio including luxury properties in London, New York and Egypt.

Details of how he generated his wealth are sketchy.

“There is no doubt that he is worth a few billion at least,” Davidson said. “It would be naive to assume that he is not worth anything less than that. It is an extremely wealthy family that has built up wealth, mostly likely from kickbacks from the military.”

Swiss authorities have moved to freeze Mubarak’s funds and British authorities have said they are searching for any UK-based assets. However, Davidson said the layers of shell companies and secrecy likely to be in place would make it difficult to track the full scale of the ex-leader’s wealth.

 “They tracked one property in London that has been inhabited by Mubarak’s son to a shell company in Panama [then] to a shell company in Cyprus. It is a very complex arrangement, which shouldn’t be surprising,” he added.

 

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