Good luck with that: Saudi Businessman sues Barclays for $10 billion
The Chairman of MBI International and founder of Jadawel property group alleges that Barclays conducted corrupt activities in Saudi Arabia that ultimately lost his companies $10 billion, according to a report in the Financial Times.
Mohammed bin Issa al Jaber has reportedly taken provisional steps towards suing Barclays for damages up to $10 billion, according to the Financial Times.
Mohammed bin Issa al Jaber is said to have demanded that law firm White & Case hand over documents relating to a 10-year-old confidential settlement between Barclays, the firm’s former client, and two Saudi Arabian ministries, reported the Financial Times, citing court documents filed in New York last week.
“In exchange for assistance in obtaining a valuable licence to conduct banking activities in the Kingdom and other undisclosed corrupt activities, Barclays conspired with certain officials of the Kingdom to injure petitioners’ business, reputation and access to credit,” Financial Times quotes the documents as saying.
The dispute relates to two properties that were leased by Jadawel to the Saudi ministry of defence and aviation (MoDA) in 1999 for what would have amounted to $1.4 billion of rent over 10 years, according to the documents cited by the British newspaper.
Jadawel used the projected income to secure a $900 million syndicated loan from Barclays and other lenders in 2001, however MoDA defaulted in 2002, Financial Times reported the documents as saying. The default caused other banks to “refuse credit to MBI”, which resulted in $10 billion of damages, the documents reportedly claim.
Barclays sued MoDA in New York but discontinued the action in 2003. According to the Financial Times, Jaber alleges that Barclays actions “amounted to . . . bribery”.
A hearing is said to have been scheduled for next month, the newspaper reported.
- Why is the Israeli shekel so weak?
- What doesn't kill you, makes your stronger: why the Arab Bank is likely to emerge from the Israeli lawsuit 'unscathed with flying colors'
- Too foreign? An inside look into the struggles of foreign banks in Saudi Arabia
- A clash of civilizations: are foreigners newly entering the Saudi stock market about to face a culture shock?
- From tweets to public outrage: understanding Turkey's bitterness towards credit rating agencies