DUBAI: Qatar’s 2008 bailout of Barclays has come back to haunt the British banking giant, with the leveling of fraud charges against it and four former senior executives over multibillion-pound deals nine years ago.
The Serious Fraud Office (SFO), the UK’s top financial prosecutor, announced charges as Qatar’s financial sector showed signs of further strain under the weight of sanctions brought to bear by a coalition of neighboring countries including Saudi Arabia and the UAE.
It has for months been considering action over the undisclosed terms of £6.1 billion ($7.7 billion) worth of deals that saw Qatari investors buy shares to prop up the bank at the height of the global financial crisis, after an investigation that began in 2012.
The SFO on Tuesday announced charges of conspiracy to commit fraud and provision of unlawful financial assistance against the Barclays parent company and four executives who were at the heart of the deals.
The highest profile is John Varley, former group chief executive, who becomes the first boss of any global bank to face criminal charges as a result of the 2008 crisis, which sparked a global crash and recession.
The others were well-known deal-doers at the bank: Roger Jenkins, former chairman of investment banking in the Middle East; Thomas Kalaris, former head of wealth and investment management; and Richard Boath, former head of financial institutions in Europe.
The SFO charges named Qatar Holding, one of the troubled country’s investment vehicles and Challenger Universal, an investment unit set up by former Qatari Prime Minister Hamad bin Jassim Al-Thani, as counterparties to the deals but no British criminal actions have been brought against any Qatari citizens.
Separately, Qatari bankers on Tuesday reported that the Qatar Investment Authority (QIA), its main sovereign wealth fund, made billions of dollars worth of deposits in local banks in an effort to head off any liquidity crisis as fears grew in the country that the current blockade by its neighbors might spark a run on financial institutions there.
In 2008, Barclays was facing its own liquidity crisis as the strains of the global financial crisis weighed on all the big British banks. Some were forced to swap their independence for government bailout funds to avoid bankruptcy.
Barclays, under Varley, chose instead to seek assistance from the Arabian Gulf in a set of transactions that brought in billions of pounds of capital. The first tranche involved investors in Qatar and in Abu Dhabi, the second just Doha investors.
Barclays agreed to pay Qatari investors £322 million in return for the capital injections in side deals that were not disclosed at the time and which the SFO alleges amounted to fraud. There are no allegations against the Abu Dhabi investor.
A third transaction in 2008 involved Barclays making available a loan of $3 billion to Qatar, which the SFO alleges amounted to unlawful financial assistance.
Barclays said it was considering its position in relation to the charges. “Barclays awaits further details of the charges from the SFO,” it said.
The former executives either declined to comment or professed their determination to fight the charges. Jenkins’ lawyer said he intended to vigorously defend against the charges. “As one might expect in the challenging circumstances of 2008, Mr. Jenkins sought and received both internal and external legal advice on each and every aspect of the accusations leveled today by the SFO,” he told the Financial Times.
Boath is involved in a separate action against the bank in a claim for wrongful dismissal over information he provided the SFO in the course of their investigation.
Barclays is also fighting a £720 million claim from financier Amanda Staveley, who was involved in the 2008 transactions.
The charges come at a politically sensitive time for both Qatar and the UK. The former is resisting pressure from its neighbors in the Gulf to halt alleged support for terrorist organizations, which has led to the cutting of economic ties with its two biggest neighbors, Saudi Arabia and the UAE.
On the liquidity measures taken recently, the Qatar Central Bank (QCB) told Reuters: “QIA regularly places deposits in local banks, this is normal.”
Qatar is also a big investor in Britain, with extensive real estate interests and ownership of high-profile assets like the Harrods department store.
Britain, seeking to make up lost investment in the wake of the impending withdrawal from the EU, has made no secret of its need for stronger investment links with the Gulf.
• Frank Kane is an award-winning business journalist based in Dubai. He can be reached on Twitter @frankkanedubai
Fraud charges against Barclays over Qatar deals
Fraud charges against Barclays over Qatar deals
Saudi Arabia, UAE have world’s most ambitious decarbonization programs: WEF panel
- “Solving sustainability problems requires technology and China has contributed greatly by increasing technical progress and making the cheapest energy available to the world”
DUBAI: A panel of ministers and experts gathered at the World Economic Forum in Riyadh on Sunday to discuss the road map for tripling renewables by 2030.
The UAE’s Minister of Energy and Infrastructure Suhail Mohamed Al-Mazrouei said his country’s goal would not only be reached but possibly exceeded by 2030.
“The UAE has been offering solar power to aid the world in reaching the goal of tripling renewables,” he said. “We have very few years until 2030, we need to work alongside and encourage countries to make the achievement by then.”
Li Zhenguo, president of Longi Green Energy Technology, said the Chinese government had been at the forefront of efforts to develop renewables.
“In 2023, China installed 216 solar power plants, which is more than 50 percent of the global capability,” he said.
“Solving sustainability problems requires technology and China has contributed greatly by increasing technical progress and making the cheapest energy available to the world.”
Marco Arcelli, CEO of Saudi-based ACWA Power, said he was surprised by the momentum in the region.
“Saudi and UAE have the most ambitious decarbs programs in the world. There is a speed and dimension you don’t see much elsewhere,” he said.
“There is leadership with a vision, there is cheap energy available and I believe you will start seeing greenshoring in the Kingdom by 2030. Lots of upcoming projects in the country, be it NEOM or others, will be solar driven and using renewable energy.”
Kuwait’s Minister of Electricity, Water and Renewable Energy Salem Alhajraf said there was a need to increase global production capacity.
“Innovative financing is key,” he said. “We need to move from small giga-sized projects to deploying renewables. Cities or towns with small populations can possibly have all their needs met by solar power.”
Stephanie Jamison, global Resources Industry Practices chair at Accenture, said her company had been developing guidelines for community engagement and nature transition.
“By conducting surveys and interviewing various CEOs, it has become clear that companies understand the impact they are making on nature. And so, partnerships between companies and proactive partnerships between companies and the community is one way to tackle challenges.”
Saudi energy minister, EU official discuss cooperation on clean energy
RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday held talks with EU Energy Commissioner Kadri Simson to discuss prospects for cooperation in the field of clean energy.
The top officials met on the sidelines of the World Economic Forum in the Saudi capital, the Saudi Press Agency reported. They discussed ways to strengthen bilateral ties, boost cooperation for the promotion of green energy and advance the goals of the Paris Agreement and ensure the implementation of the outcomes of the COP28 held in Dubai last year.
The Paris Agreement is an international treaty on climate change that was adopted back in 2015. It was negotiated by 196 parties at COP21 in France and covers climate change mitigation, adaptation, and finance.
They reaffirmed the common goals of Saudi Arabia and the EU and the determination of both parties to accelerate private investment in the renewable energy sector, cooperate on electricity interconnection and the integration of renewables into the electricity grid.
The officials stressed the need to strength the electricity supply infrastructure through demand side management smart grid. They also discussed carbon capture, utilization and storage technology and opportunities for industrial partnerships in those sectors.
They also shared their view on building on the UNFCCC, the Paris Agreement and COP28 outcomes. The officials also discussed a Saudi-EU memorandum of understanding to boost cooperation in the energy sector.
According to SPA report, they were of the view that such an MoU should provide a solid and mutually beneficial basis for orienting and anchoring investment decisions in the energy and clean tech sectors, involve and mobilize stakeholders from the public, private and financial sectors, and lay the foundation for a more sustainable and secure energy future.
The European Commission and Saudi Arabia aim to conclude the MoU in the next few months.
Saudi Arabia to host 28th World Investment Conference in Riyadh
RIYADH: Saudi Arabia is on track to host the 28th World Association of Investment Promotion Agencies’ World Investment Conference from Nov. 25 to 27 in Riyadh.
The forum themed “Future-ready IPAs: Navigating digital disruption and sustainable growth,” will bring together leaders from investment promotion agencies, corporates, multilateral institutions, and other stakeholders to discuss global financial trends and opportunities, according to a statement.
The Kingdom’s selection as a host underscores its position as an international funding hub, according to Saudi Investment Minister Khalid Al-Falih.
“We are honored to be welcoming the global investment community to Saudi Arabia. Our strategic location at the crossroads of three continents, coupled with our world-class investment ecosystem and long-term political and economic stability, has seen the Kingdom develop into a global investment hub,” Al-Falih said.
“The World Investment Conference will serve as a platform to showcase our nation’s potential and forge partnerships that will shape the global investment landscape for years to come,” the minister added.
On WAIPA’s behalf, Executive Director and CEO Ismail Ersahin said: “WAIPA is honored that the 28th WAIPA World Investment Conference will be held in Riyadh, a city with a rich history and culture.”
Ersahin added: “With each edition, the WIC reaffirms its status as a guiding force for sustainable and inclusive development.”
He went on to stress how the conference is poised to be an impactful gathering aimed at the future readiness of IPAs.
Since 1995, the annual gathering has provided a forum for stakeholders to exchange insights and best practices and forge partnerships that drive economic development globally.
Human capital a ‘key challenge’ for Kingdom’s tourism sector, says Saudi minister
- Saudi Arabia's tourism sector is 'heading to achieve $80 billion this year' in private investment, Al-Khateeb told a WEF panel
LONDON: Developing human capital is a key challenge for Saudi Arabia’s travel sector, the country’s tourism minister has said on Sunday.
Ahmed Al-Khateeb, speaking during a two-day meeting of the World Economic Forum in Riyadh, discussed the Kingdom’s burgeoning tourism industry, which has boomed over the past half-decade.
To address the human capital challenge, the Saudi leadership has encouraged young people across the Kingdom “to join the sector,” he said.
“We are spending a lot to train (young Saudi talents) and scale them, and involve them in the sector,” he told the “Vacationomics” panel discussion, adding that hiring local experts is essential for delivering better tourism experiences.
“You get the best experience and you know more about other people’s culture and other nations’ cultures when you deal and interact with locals,” he said. “We want to make sure that our guests are served by local people.”
Saudi Arabia has delivered “strong growth in Q1 this year, and we are moving to deliver our 2030 numbers,” the minister said.
The Kingdom’s tourism sector “has come a long way” since the launch of the National Tourism Strategy as part of efforts to diversify the economy, Al-Khateeb said, adding that the industry is “heading to achieve $80 billion this year” in private investment.
Last year, Saudi Arabia attracted about $66 billion in private investment into tourism.
“We doubled the number of visitors coming from outside — 100 million in total … 77 million domestic (and) 27 million international,” he said. “This is double the number that we achieved before we launched our National Tourism Strategy.
“We have the funding. We have a great country. We have everything that the international tourists would like to see and experience.”
Jerry Inzerillo, chief of the Diriyah Gate Development Authority, told the panel: “What the Gulf and its leadership will do in the next 10 years is going to be breathtaking to allow people to come from all over the world.”
With “so much to do in the region,” Inzerillo said he believed the “warmth and hospitality” of the Saudi people is serving as a strong selling point for tourism in the Kingdom.
Though the traditional Gulf tourism market in Saudi Arabia is well developed, European tourism is “now activating” through new business with the Kingdom, he added.
“And as we sign more and more airline deals and… (the) Ministry of Tourism has done a brilliant job in getting bilaterals, you’ll see those numbers grow very exponentially.”
Other panelists included Abdulla Bin Touq Al-Marri, UAE minister of economy; Thiago Alonso de Oliveira, CEO of JHSF Participacoes; and Aireen Omar, president and CEO of RedBeat Capital.
Saudi Green Building Forum set to obtain UNCCD’s permanent observer status
RIYADH: The Saudi Green Building Forum is set to obtain permanent observer status following the submission of a formal request to the UN Convention to Combat Desertification.
Pending a final decision during the 16th session of the Conference of the Parties to be held from Dec. 2-13 in Riyadh, this move underscores the forum’s efforts to enhance its role in sustainable development and combat desertification.
The forum, which has already been temporarily accredited, is involved in the proceedings based on the provisions of paragraph seven of article 22 of the convention and articles six and seven of the internal regulations of the COP, according to a press release.
This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management.
Commenting on the development, Faisal Al-Fadl, secretary-general of the Saudi Green Building Forum, said: “We are pleased with the official notification from the UN Secretariat of the receipt of the required documents after a thorough review of the documents submitted for the accreditation of the forum as the first Saudi institution specialized in preparation for obtaining observer status for the Conference of the Parties to the UN Convention to Combat Desertification,” he stated.
“The efforts of local communities play a significant role in enhancing the sustainable development goals for people, plants, and prosperity through advocating for human experiences based on scientific rules and community health and well-being for healthy, fair, and resilient communities and cities, sufficient consumption and production, climate action in removing harmful carbon, and reducing the temperature to 1.5 degrees Celsius, addressing desertification, and managing natural resources and water,” he added.
The UN Secretariat confirmed the receipt of all necessary documents for the forum’s accreditation as an observer, encouraging further participation in the convention’s activities.
“After a thorough review of the documents submitted by your institution, we encourage you to continue participating in the implementation of the UN Convention to Combat Desertification and keep the secretariat informed of the activities,” the letter stated.
The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification, leveraging cooperation between developed and developing nations, particularly in sustainable land management and environmental restoration.
