INTERVIEW: The Mooch: ‘Relax — none of us are getting out of here alive’

(Illustration by Luis Grañena)
Updated 03 December 2019
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INTERVIEW: The Mooch: ‘Relax — none of us are getting out of here alive’

  • Anthony Scaramucci discusses Saudi Arabia’s global image and why he will not abandon his campaign against Trump

You cannot publish everything Anthony Scaramucci tells you. I’ve had conversations with him several times on recent visits to the Middle East where he has offered views — for example, on the state of health of the president of the US — that would not make it into a family newspaper on grounds of taste, or legality, or both.

Fortunately, what you can publish is more than enough to make a decent interview, so it was with a sense of expectation that I started a phone call with the hedge fund manager and communications adviser to President Donald Trump, whom many call “The Mooch.” I was not disappointed.

He wanted to talk first about the forthcoming forum he is staging in the UAE capital Abu Dhabi, the SALT Conference, named after his financial business Skybridge, which he said is “one of the joys of my life.”

The event has been going since 2009, with a must-attend annual gathering in Las Vegas, Nevada as its flagship event. But this is the first time it has come to the Middle East. It was a choice between Saudi Arabia and the UAE, he said, and he went for Abu Dhabi because it is “a little more open,” he explained.

“I know Saudi Arabia is in the process of opening, but Abu Dhabi was the most collaborative of the places we considered. We’ve been able to mix our DNA with theirs to make a blended version,” he said.

Scaramucci was especially impressed with Ahmed Al-Sayegh, the executive chairman of the Abu Dhabi Global Market where the SALT event will be held. “He’s my guy. He’s the guy I want to do business with,” he said.


BIO

BORN: Long Island, NY, 1964.

EDUCATION:

  • Paul D Schreiber Senior High School.
  • BA in economics Tuft’s University
  • Doctor of Jurisprudence, Harvard Law School.

 

CAREER:

  • Investment banker, Goldman Sachs.
  • Co-founder, Oscar Capital Management.
  • Lehman Brothers.
  • Founder and managing partner, Skybridge.

 


With the SALT plug over, we talked more about the Middle East. He has been coming to the region since 2005, when he started doing investment business for some big Saudi investors, and only Yemen remains on the list of places he has not visited. His most recent trip was to the Future Investment Initiative (FII) in Riyadh.

“I’ve never been to a conference like that before, and I’ve been to Davos and hundreds of others around the world. I was blown away by the FII, by the amount of money spent and by the range of people there. I met maybe 100 people I’d never have met anywhere else,” he said.

Before that, we had chatted at the Peace to Prosperity conference organized by Trump’s son-in-law Jared Kushner in Manama, Bahrain. “Trump hired a 38-year-old to bring peace to the Middle East, hoping he’d figure it out. I don’t think there’s going to be peace as a result,” he said dismissively.

He called the Middle East “a rough neighborhood,” but said Western media often exaggerates the problems there, especially on cable TV. “The Western media isn’t going to like me saying this, but I get along with these people in the region, they are very welcoming. And the cities are very modern. New York and London are layered over by modernity, but here they’ve done an amazing job on infrastructure. I’d trade Dubai international airport for JFK tonight,” he said.

And it’s not just physical facilities he admires. “They’re working hard on tolerance. I realize things are not perfect and we live in a rough world, but you’ve got to keep working towards modernity and racial and religious tolerance,” he said.

Our conversation came round to the late Jamal Khashoggi, who was a regular guest at Scaramucci’s annual gathering at the World Economic Forum in Davos. “It (his death) was an unmitigated disaster and tragedy. Sometime decisions and institutions are flawed, and have tragic consequences.”

But he does not think the incident should lead to a reduction of US involvement in the Middle East, as some US politicians have advocated. “At the same time, I want a better place for my children, so it’s a good thing for us to have a presence in the region,” he said.

“Obviously, mistakes were made in Saudi Arabia, but when I see what’s been going on in the Kingdom, it will be a more tolerant and open place than it was 20 years ago,” he said.

The damage caused by the Khashoggi affair will linger for some time, he believes. “It will not be solved quickly. If I was on the Kingdom’s crisis management team, I’d advise the crown prince to open up more to the press. I wrote an article in the US stating that the media was not the ‘enemy of the people,’ and the president did not like that, but leaders get too sensitive about criticism from the press.

“A free and fair press globally helps society by providing a voice to the people and makes them feel empowered. It teaches young people to think freely. A lot of economic innovation, like Facebook and Google, comes from that,” he said.

His advice to the Saudi leadership in the wake of Khashoggi is simple: “You’re winning. Ignore the criticism. The House of Saudi has enjoyed 80 years of peace and security despite some obvious problems. Having a free press would allow you to help fix those problems.”

But he is not telling the Kingdom how to organize its affairs. “I’m very respectful of other systems and cultures. The West often makes the mistake of trying to impose our systems and values on others. I’m just advising them to open it up a little bit.” 

Scaramucci was at the receiving end of a “free and fair press” during his brief stint as director of communications for Trump in 2017. His ten days in the White House ended in a tirade of scurrilous comments on his enemies in the administration after a journalist published what he regarded as off-the-record remarks delivered with characteristic candidness.




Panelists are shown in this still image of a video taken during the SALT conference in Las Vegas last May. (Screengrab from YouTube video)

It was a life-changing moment for The Mooch. He had been a backer of Democrats in the past, but became a Trump supporter during the 2016 campaign. After his dismissal from the White House, and especially after some of Trump’s most vicious anti-immigrant comments, he turned gradually into one of the administration’s most vociferous opponents.

He is now actively campaigning to have Trump removed from office, and encouraging other Republicans to stand against him in next year’s election. His Twitter feed is one of the main sources of “resistance” to the Trump administration.

“Given his rank lawlessness and criminal activity, the lack of resistance in the Republican party to him tells you a lot about the hypocrisy in America today. He has clearly broken the law, but he has a group of sycophants and acolytes who won’t condemn what he’s doing.

“I just think he’s the wrong leader for the US. Our system is supposed to ensure that everyone is subject to the law. The president is supposed to serve, not rule. I think the guy is a traitor,” he said.

He thinks that Joe Biden, the former vice president in the Obama administration, has the best chance of beating Trump next year because he can flip vital states in the midwest that narrowly chose Trump in 2016. “The Trump campaign is most afraid of Biden, which is why they’re working overtime to try to dig up dirt on him,” he said.

On the Republican side, he has championed the cause of Utah Senator Mitt Romney, but he does not see any serious challenge from the Republicans. “I don’t think anyone with a real chance will step up. The people best positioned are standing aside in order to prepare themselves for the future. They hate his guts, but they’re afraid of him,” he said.

Whatever happens in the run-up to the election, Scaramucci will not be giving up his campaign against the president, despite a relative truce in the Twitter war between himself and Trump. “He has not hit back against me since August because he doesn’t want to escalate the situation, but I’m going to keep hitting him. I’m not a politician — I know how to handle myself in a streetlight.”

To illustrate his determination to fight the Trump administration, as well as his overall life philosophy, The Mooch told me his favorite slogan, taken from the great American film director and comedian Mel Brooks: “Relax. None of us are getting out of here alive.”


UAE records 64% surge in trademark registrations

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UAE records 64% surge in trademark registrations

RIYADH: The UAE recorded an annual 64 percent surge in trademark registrations, amounting to 4,610 in the first quarter of 2024, official data showed.

The figures, released by the nation’s Ministry of Economy, reveal the notable increase from 2,813 signups in the same period of 2023. 

March emerged as a particularly prolific period, with 2,018 new brands reported.

The trademarks registered during this time span a wide range of key sectors, including smart technology, transportation, food and beverage and pharmaceuticals as well as medical devices, finance, real estate, and more. 

The preceding months of January and February collectively accounted for 2,592 trademarks, further highlighting sustained growth and momentum in registrations.

 


Saudi EXIM Bank inks deal with Swiss counterpart to elevate trade exchange 

Updated 11 min 11 sec ago
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Saudi EXIM Bank inks deal with Swiss counterpart to elevate trade exchange 

RIYADH: Saudi EXIM Bank and its Swiss counterpart have signed an agreement to boost the Kingdom’s non-oil exports, enhancing their global market competitiveness. 

In an X post following the deal, the Saudi lender stated that the reinsurance agreement with the Swiss Export Credit Agency was signed in Zurich. 

This development follows Saudi EXIM’s signing of reinsurance treaties with a consortium of global reinsurers led by Swiss Re in Zurich. These agreements will expand global insurance operations in collaboration with the world’s largest reinsurers and provide insurance coverage to support the growth of Saudi exporters in global markets. 

The trade relationship between Saudi Arabia and Switzerland has been robust, with exports from the Kingdom to the European nation totaling $810.67 million in 2023, according to the UN’s database on international trade.  

The Kingdom’s primary exports to Switzerland included pearls, precious metals, and aluminum, valued at $587.57 million and $139.39 million, respectively.  

On the other hand, Swiss exports to Saudi Arabia amounted to $6.77 billion in 2023. 

In October 2023, Saad Al-Khalb, CEO of EXIM Bank, told Arab News that the main mandate of the financial institution is to support the Kingdom’s economy and flow of goods, trades, infrastructure and long-term projects. 

In January, the Saudi lender also signed an agreement with its US counterpart to boost cooperation and help strengthen economic and trade relations between the two countries.  

The total value of credit facilities implemented by the EXIM Bank in 2023 reached $4.39 billion, exceeding its annual target by 33 percent, the Saudi Press Agency reported. 

This figure represents 5.2 percent of the total financial arrangements for the Kingdom’s non-oil outbound trade. 


March data reveals slight dip in Dubai’s inflation

Updated 24 min 6 sec ago
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March data reveals slight dip in Dubai’s inflation

RIYADH: Dubai’s inflation witnessed a slight decrease in March, dropping to 3.34 percent compared to 3.36 percent in February, according to official data.

The decline in inflation is attributed to lower prices of specific goods and services, notably in the food and transportation sectors.

Dubai’s Consumer Price Index rose to 110.77 points in March, compared to 110.50 points in the previous month, due to the rise in prices of key expenditure groups and services, including insurance and financial services by 8.67 percent, housing, water, electricity, gas, and fuel by 6.34 percent, and education by 3.62 percent.

However, despite the overall decrease in annual inflation, some sectors experienced price hikes. These areas included transportation, which witnessed a 1.75 percent increase, and housing, water, electricity, gas, and fuel, which saw a 0.58 percent increase.

Speaking to Arab News, economist and policy adviser Mahmoud Khairy highlighted that inflation affects sectors differently based on various factors such as economic structure and market dynamics.

“The most prominent and immediate effect of inflation is on consumption, potentially reducing consumers’ purchasing power and altering spending patterns,” he said.

Khairy also emphasized the sensitivity of the housing and real estate markets to inflationary changes in the Gulf Cooperation Council region. 

“Construction costs and property values may increase which will put extra burden on financing needs,” he added.

In addition to the decrease in inflation, food and beverage prices in Dubai in March decreased by 0.36 percent, along with drops in furniture prices by 0.06 percent and information and communication by 0.02 percent. 

The cost of restaurants and hotels also decreased by 2.15 percent, while prices of insurance and financial services lowered by only 0.08 percent.

In neighboring Saudi Arabia, inflation also fell in March, registering a rate of 1.6 percent compared to 1.8 percent the previous month. 

Shifts in the food and beverage sector primarily drove the decline.

Khairy explained that inflation expectations influence consumer behavior, similar to preparing for a weather forecast.

“When people expect prices to rise, they often rush to buy things sooner to avoid paying more later,” he said.

Investors closely monitor inflation, tweaking portfolios based on their predictions. Similarly, policymakers and central banks rely on inflation expectations to steer the economy, akin to checking weather forecasts for planning. 

Earlier last week, IMF chief Kristalina Georgieva remarked on the importance of central bankers meticulously adjusting their interest rate reduction strategies in response to incoming data. 

Regarding challenges and opportunities for GCC economies, Khairy noted the reliance on oil revenues, currency pegs to the US dollar, and geopolitical tensions in the Middle East as factors influencing inflation and economic stability.

“Disruptions to global supply chains due to geopolitical tensions or trade disputes can lead to supply shortages and price increases, contributing to inflationary pressures,” he said.

The World Bank said in a report that “GCC countries are small open economies with high dependence on international trade which makes them vulnerable to global shocks in addition to domestic ones.” 

Khairy also emphasized the importance of economic diversification efforts and strategic infrastructure investments to mitigate the impact of external shocks on inflation and promote overall financial stability in the region.

He concluded that higher inflation poses challenges for government budgets and financing.

“As prices increase, governments face a higher fiscal deficit to achieve just the same level of consumption and investment. On the other hand, inflation is always associated with higher interest rates which increases the cost of financing for government debt,” he said.


Madinah airport claims top spot in Middle East regional ranking 

Updated 33 min 27 sec ago
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Madinah airport claims top spot in Middle East regional ranking 

RIYADH: Saudi Arabia’s Prince Mohammad bin Abdulaziz International Airport in Madinah has been awarded the title of the best regional airbase in the Middle East for 2024. 

The recognition was announced during the Skytrax World Airport Awards, held at the Passenger Terminal EXPO in Frankfurt. 

Meanwhile, Qatar’s Hamad International Airport claimed the title of the world’s best aviation hub for the year, while Singapore Changi Airport, previously named the airport of the year in 2023 and a winner on 12 occasions in the past, secured the second position in the global ranking. 

Changi Airport also earned recognition as the top airbase in Asia and for delivering the world’s best immigration services, as per Skytrax. 

Meanwhile, Seoul Incheon Airport, advancing to third place in the global survey rankings, was awarded the title of the world’s most family-friendly terminal for 2024. 


Egypt’s foreign debt increases by $3.5bn, official figures show 

Updated 18 April 2024
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Egypt’s foreign debt increases by $3.5bn, official figures show 

RIYADH: Egypt’s foreign debt increased by $3.5 billion in the fourth quarter of 2023, reaching a total of $168 billion, as reported by the nation’s planning ministry.  

This marks a climb from the $164.5 billion recorded at the end of September, representing 42.4 percent of the nation’s gross domestic product. Notably, 81 percent of this debt is categorized as long-term. 

This uptick in foreign borrowing is part of a broader trend over the last decade, during which Egypt has significantly increased its external debt, investing heavily in state-driven projects.  

This financial strategy was underscored last month by an $8 billion economic support package secured from the International Monetary Fund. 

Amid these monetary maneuvers, Egypt’s Finance Minister Mohamed Maait recently projected that the country’s GDP would grow by 2.8 percent in the fiscal year ending in June 2024, with expectations of an acceleration to 4.2 percent in the following year.  

These figures are closely aligned with the IMF’s more conservative forecast of 3 percent GDP growth for the calendar year 2024, indicating optimism about Egypt’s economic trajectory despite its growing debt burden. 

Earlier in April, Maait highlighted that despite the harsh impacts of global and regional economic crises, Egypt has seen financial indicators surpass budget estimates and targets over the past nine months of the fiscal year 2023-2024.  

The minister noted that this success reflects the international recognition of the North African country’s economy for achieving better-than-expected performance metrics.   

Further emphasizing the economic strategies, Maait pointed out the significant improvements in non-tax revenues, which increased by 122.9 percent, and tax revenues, which surpassed 1 trillion Egyptian pounds ($20.6 billion), marking a growth of 41.2 percent annually.    

He noted these gains were achieved without imposing new burdens on citizens or investors, thanks to expanded mechanization intended to broaden the tax base and integrate the informal economy into the formal sector.    

Maait pointed out that the country’s ongoing effort to boost its economy is evident in the Ministry of Finance’s dialogues with over 2,000 investment institutions annually.    

The ministry’s Investor Relations Unit plays a crucial role in these engagements, maintaining open dialogue throughout the year and issuing monthly performance data.  

These documents provide foreign investors with precise, up-to-date economic data, including details about debt levels, deficits, and primary surpluses, the state-owned newspaper reported.   

They also offer a simplified guide on the various incentives, including tax advantages available to investors, aiming to alleviate any concerns and accurately address potential economic risks.   

Meanwhile, data released earlier this month by Egypt’s Central Agency for Public Mobilization and Statistics showed a slowdown in the country’s urban consumer price inflation rate to 33.1 percent in March from 36 percent in February.   

Additionally, month-on-month prices rose by 10 percent in the third month of 2024, down from an 11.4 percent increase in the previous period.  

This development follows the central bank’s announcement in early March of a 600 basis points hike in interest rates at an unscheduled meeting, along with a shift to an inflation-targeting regime, allowing the exchange rate to be determined by market forces.