Rami Makhlouf
Encyclopedia
Rami Makhlouf is a wealthy Syrian businessman and the maternal cousin of President Bashar Assad. He is the main owner of Syriatel
and according to the Financial Times
he is thought to control as much as 60% of the Syrian economy through his web of business interests that include telecommunications, oil and gas, construction, banking, airlines and retail. He is considered one of the most powerful men in Syria and according to Syrian analysts no foreign company can do business in Syria
without his consent and partnership. He is a part of Bashar Assad's inner circle.
through his aunt Anisa Makhlouf who is the wife of former Syrian President Hafez Assad. His personal wealth was estimated in 2008 to be about $6 billion dollars. He is the main owner of Syriatel
which is one of the two licensed mobile phone company's in Syria. Besides owning Syriatel, he is involved in real estate, banking, free trade zones along the border with Lebanon
, duty-free shops, and luxury department stores. According to the Financial Times
, he is thought to control as much as 60% of the Syrian economy through his web of business interests.
Rami Makhlouf was among a diverse group of connected insiders who monopolized the small, but growing, Syrian private sector in the 1990s. As President Hafez Assad prepared for his son's succession, the distribution of assets from privatization began to shift clearly in favor of the Makhloufs. Assad believed the Makhlouf family could be relied upon to support Bashar without reserve in the uncertain political environment that would follow upon his death. This was in contrast to other insiders who had close financial ties to billionaire Lebanese Prime Minister Rafiq Hariri, such as former Syrian Vice President Abdul Halim Khaddam
. Rami and his brother Ihab therefore enjoyed easy access to opportunities such as an exclusive license to operate a network of duty-free retail shops where a significant portion of goods were redistributed inside the country. By the time Bashar assumed power in 2000, Rami Makhlouf was well established.
concession in Syria by ensuring a law was passed denying Mercedes the right to import parts unless Makhlouf was made the exclusive agent for Mercedes in Syria. Mercedes wanted to keep the Sanqar family who had the concession since the 1960s. Mercedes stopped all activity in Syria until the dispute was resolved, the Mercedes concession is now once again controlled by the Sanqar family.
Makhlouf's current business interests are extensive. He is the majority owner of Cham Holding which has investments in luxury tourism, restaurants, and real estate through Bena Properties
. Cham Holding also controls Syrian Pearl Airlines, the first private airline to be allowed in the country. He is also invested in several private banks established in Syria, such as the International Islamic Bank of Syria, Byblos Bank, Al Baraka Bank
, International Bank of Qatar, Cham Bank
, Bank of Jordan in Syria; in insurance companies; and in financial services companies, such as Cham Capital. Like his father, Mohammed Makhlouf, he is active in the oil sector, via the British
oil company Gulfsands Petroleum. He is also invested in real estate companies such Sourouh
, Fajr, Al Batra, and Al Hada'iq; in tourism companies such as Al Mada'in; in media companies such as daily Al Watan, radio/television station Ninar and satellite station Dunya TV; in advertising companies such as Promedia; in education companies such as the Chouwayfat
schools; in industry through the Eltel Middle East company; and in Public Work's companies such as Ramak TP. Rami Makhlouf has extensive land holdings in the U.S. Virgin Islands
, which were the subject of court litigation. As a result of this litigation Rami's U.S. holdings were transferred to his brother Ihab. The Makhloufs also have a monopoly on the import of tobacco into Syria.
Makhlouf maintains a close relationship with Bushra al-Assad
, Bashar's older sister, and her husband Assef Shawkat. He also operates a number of different business projects in Lebanon with Maher al-Assad
, Bashar's younger brother. There are reports of tensions between the two, which is considered why parts of the Makhlouf business were shifted in 2005 to Dubai
. Some observers believe the transfers were made because the Makhloufs were worried that they were going to be made the scapegoats of an anti-corruption propaganda campaign.
designated Makhlouf as a beneficiary and facilitator of public corruption in Syria. His influence and connections within the regime have allowed him to control the issuance of certain types of profitable commodities contracts. According to the Treasury Department, “Makhlouf has manipulated the Syrian judicial system and used Syrian intelligence officials to intimidate his business rivals. He employed these techniques when trying to acquire exclusive licenses to represent foreign companies in Syria and to obtain contract awards.” On May 10, 2011 the European Union
placed sanctions on him for bankrolling the regime and allowing violence against demonstrators.
Rami Makhlouf is viewed by the Syrian opposition as a symbol of corruption in Syria. In Daraa during the 2011 Syrian uprising
, demonstrators accused him of being a "thief". Among political observers it is generally accepted that Makhlouf's great wealth is a result of his close family ties to the Syrian regime. It is reported that Bashar al-Assad before he became president would during official meetings try to make business contacts for Rami. In US diplomatic cables leaked
by Wikileaks
, Rami Makhlouf is described as a powerful regime financer. Makhlouf has further been accused of illegally diverting Lebanese telephone calls through Syria with the help of businessman Pierre Fattouch for the benefit of Syriatel.
The arrest and imprisonment for several years of the Syrian dissident Riad Seif
is related to his criticism of Rami Makhlouf. Seif, a member of parliament and one of the most ardent critics of the Syrian government, became known outside of Syria because of his government criticism during the Damascus Spring
of 2001. Despite several warnings by the Syrian regime not to interfere, Riad began in September 2001 an anticorruption campaign against the way the two GSM mobile phone licenses were awarded, one of which had been awarded to Maklouf's Syriatel. Shortly thereafter Seif lost his parliamentary immunity and was arrested and imprisoned for five years.
On June 16, 2011 tycoon Rami Makhlouf, who says he is quitting the Syrian business scene, owes his fortune and his role as a hate figure for protesters to his cousin President Bashar al-Assad.
Syriatel
Syriatel Mobile Telecom PLCfounded in Nov 2001Capital: SYP 3.350 billionCommon shares: 134 millionStock Par value: SYP25 Syriatel leads the Syrian mobile telecommunication market since 2000, Syriatel believes that the first responsibility is to offer the customers a wide array of high quality...
and according to the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
he is thought to control as much as 60% of the Syrian economy through his web of business interests that include telecommunications, oil and gas, construction, banking, airlines and retail. He is considered one of the most powerful men in Syria and according to Syrian analysts no foreign company can do business in Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....
without his consent and partnership. He is a part of Bashar Assad's inner circle.
Background
Rami Makhlouf is one of the wealthiest individuals in Syria and the cousin of Bashar Assad. He is related to the Assad familyAssad family
The Assad family has ruled Syria, since Hafez al-Assad became Syrian President in 1971 and established an authoritarian regime under the control of the Baath party. After his death in 2000, his son Bashar al-Assad succeeded him....
through his aunt Anisa Makhlouf who is the wife of former Syrian President Hafez Assad. His personal wealth was estimated in 2008 to be about $6 billion dollars. He is the main owner of Syriatel
Syriatel
Syriatel Mobile Telecom PLCfounded in Nov 2001Capital: SYP 3.350 billionCommon shares: 134 millionStock Par value: SYP25 Syriatel leads the Syrian mobile telecommunication market since 2000, Syriatel believes that the first responsibility is to offer the customers a wide array of high quality...
which is one of the two licensed mobile phone company's in Syria. Besides owning Syriatel, he is involved in real estate, banking, free trade zones along the border with Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
, duty-free shops, and luxury department stores. According to the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
, he is thought to control as much as 60% of the Syrian economy through his web of business interests.
Rami Makhlouf was among a diverse group of connected insiders who monopolized the small, but growing, Syrian private sector in the 1990s. As President Hafez Assad prepared for his son's succession, the distribution of assets from privatization began to shift clearly in favor of the Makhloufs. Assad believed the Makhlouf family could be relied upon to support Bashar without reserve in the uncertain political environment that would follow upon his death. This was in contrast to other insiders who had close financial ties to billionaire Lebanese Prime Minister Rafiq Hariri, such as former Syrian Vice President Abdul Halim Khaddam
Abdul Halim Khaddam
Abdul Halim Khaddam is a Syrian politician who was Vice President of Syria from 1984 to 2005.-Early life and career:Abdul Halim Khaddam was born on 15 September 1932 in Baniyas, Syria. Abdul Halim was one of the few Sunni Muslims to make it to the top of the Alawite-dominated Syrian leadership...
. Rami and his brother Ihab therefore enjoyed easy access to opportunities such as an exclusive license to operate a network of duty-free retail shops where a significant portion of goods were redistributed inside the country. By the time Bashar assumed power in 2000, Rami Makhlouf was well established.
Business Activities
Rami Makhlouf is thought to have attempted in 2004 to take over the MercedesMercedes
Mercedes is a girl's name of Spanish origin, referring to a title for the Virgin Mary, "Our Lady of Mercy". The word may also refer to:Automobile-related...
concession in Syria by ensuring a law was passed denying Mercedes the right to import parts unless Makhlouf was made the exclusive agent for Mercedes in Syria. Mercedes wanted to keep the Sanqar family who had the concession since the 1960s. Mercedes stopped all activity in Syria until the dispute was resolved, the Mercedes concession is now once again controlled by the Sanqar family.
Makhlouf's current business interests are extensive. He is the majority owner of Cham Holding which has investments in luxury tourism, restaurants, and real estate through Bena Properties
Bena Properties
Bena Properties is the real estate investment and development arm of Cham Holding. Bena Properties is the largest Syrian private real estate company, established in July 2007, with a diverse portfolio consisting of a range of hotels and resorts, master-planned communities, and mixed-use centers...
. Cham Holding also controls Syrian Pearl Airlines, the first private airline to be allowed in the country. He is also invested in several private banks established in Syria, such as the International Islamic Bank of Syria, Byblos Bank, Al Baraka Bank
Al Baraka Banking Group
Al Baraka Banking Group was formed in 2002 in Manama, Bahrain. The company is listed on the Bahrain Stock Exchange and Dubai NASDAQ Al, the group offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shari'a in 12...
, International Bank of Qatar, Cham Bank
Cham Bank
Cham Bank is the first Islamic bank to be established in Syria. It started operations in 2007. The Bank's operations and activities are supervised by the Central Bank of Syria....
, Bank of Jordan in Syria; in insurance companies; and in financial services companies, such as Cham Capital. Like his father, Mohammed Makhlouf, he is active in the oil sector, via the British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
oil company Gulfsands Petroleum. He is also invested in real estate companies such Sourouh
Sorouh Real Estate
Located in Abu Dhabi, Sorouh Real Estate PJSC is one of the largest real estate developers in the UAE, and currently has over AED 70 billion worth of projects under development.- Master Developments :...
, Fajr, Al Batra, and Al Hada'iq; in tourism companies such as Al Mada'in; in media companies such as daily Al Watan, radio/television station Ninar and satellite station Dunya TV; in advertising companies such as Promedia; in education companies such as the Chouwayfat
International School of Choueifat
The International School of Choueifat is a collection of international schools run by the SABIS school system in various countries of the Middle East. The first International School of Choueifat started in Choueifat, Lebanon in 1886 and later spread to various parts of the Gulf region...
schools; in industry through the Eltel Middle East company; and in Public Work's companies such as Ramak TP. Rami Makhlouf has extensive land holdings in the U.S. Virgin Islands
Virgin Islands
The Virgin Islands are the western island group of the Leeward Islands, which are the northern part of the Lesser Antilles, which form the border between the Caribbean Sea and the Atlantic Ocean...
, which were the subject of court litigation. As a result of this litigation Rami's U.S. holdings were transferred to his brother Ihab. The Makhloufs also have a monopoly on the import of tobacco into Syria.
Makhlouf maintains a close relationship with Bushra al-Assad
Bushra al-Assad
Bushra al-Assad is the first child and only daughter of Hafez al-Assad, who was the president of Syria from 1971 to 2000. She is the sister of current Syrian President Bashar al-Assad...
, Bashar's older sister, and her husband Assef Shawkat. He also operates a number of different business projects in Lebanon with Maher al-Assad
Maher al-Assad
Maher al-Assad is the brother of Syrian president Bashar al-Assad and the commander of the Republican Guard and the army's elite Fourth Armored Division, which together with Syria's secret police form the core of the country's security forces...
, Bashar's younger brother. There are reports of tensions between the two, which is considered why parts of the Makhlouf business were shifted in 2005 to Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
. Some observers believe the transfers were made because the Makhloufs were worried that they were going to be made the scapegoats of an anti-corruption propaganda campaign.
Accusations of Corruption
In February 2008, the United States Department of the TreasuryUnited States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
designated Makhlouf as a beneficiary and facilitator of public corruption in Syria. His influence and connections within the regime have allowed him to control the issuance of certain types of profitable commodities contracts. According to the Treasury Department, “Makhlouf has manipulated the Syrian judicial system and used Syrian intelligence officials to intimidate his business rivals. He employed these techniques when trying to acquire exclusive licenses to represent foreign companies in Syria and to obtain contract awards.” On May 10, 2011 the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
placed sanctions on him for bankrolling the regime and allowing violence against demonstrators.
Rami Makhlouf is viewed by the Syrian opposition as a symbol of corruption in Syria. In Daraa during the 2011 Syrian uprising
2011 Syrian uprising
The 2011 Syrian uprising is an ongoing internal conflict occurring in Syria. Protests started on 26 January 2011, and escalated into an uprising by 15 March 2011...
, demonstrators accused him of being a "thief". Among political observers it is generally accepted that Makhlouf's great wealth is a result of his close family ties to the Syrian regime. It is reported that Bashar al-Assad before he became president would during official meetings try to make business contacts for Rami. In US diplomatic cables leaked
United States diplomatic cables leak
The United States diplomatic cables leak, widely known as Cablegate, began in February 2010 when WikiLeaks—a non-profit organization that publishes submissions from anonymous whistleblowers—began releasing classified cables that had been sent to the U.S. State Department by 274 of its consulates,...
by Wikileaks
Wikileaks
WikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers. Its website, launched in 2006 under The Sunshine Press organisation, claimed a database of more...
, Rami Makhlouf is described as a powerful regime financer. Makhlouf has further been accused of illegally diverting Lebanese telephone calls through Syria with the help of businessman Pierre Fattouch for the benefit of Syriatel.
The arrest and imprisonment for several years of the Syrian dissident Riad Seif
Riad Seif
Riad Seif is Syrian political dissident, formerly a member of the Parliament of Syria and prominent businessman, who founded and lead the Forum for National Dialogue. Seif was elected to parliament in 1994 as an independent and again in 1998...
is related to his criticism of Rami Makhlouf. Seif, a member of parliament and one of the most ardent critics of the Syrian government, became known outside of Syria because of his government criticism during the Damascus Spring
Damascus Spring
The Damascus Spring was a period of intense political and social debate in Syria which started after the death of President Hafiz al-Asad in June 2000 and continued to some degree until autumn 2001, when most of the activities associated with it were suppressed by the government.- Background...
of 2001. Despite several warnings by the Syrian regime not to interfere, Riad began in September 2001 an anticorruption campaign against the way the two GSM mobile phone licenses were awarded, one of which had been awarded to Maklouf's Syriatel. Shortly thereafter Seif lost his parliamentary immunity and was arrested and imprisoned for five years.
2011 Syrian uprising
Opposition activists during the 2011 Syrian uprising accused Mr Makhlouf of financing pro-government demonstrations both across Syria and abroad, by providing flags, meals and money for those participating. The tycoon insists his businesses are legitimate and provide professional employment for thousands of Syrians.On June 16, 2011 tycoon Rami Makhlouf, who says he is quitting the Syrian business scene, owes his fortune and his role as a hate figure for protesters to his cousin President Bashar al-Assad.
External links
- Dossier: Rami Makhlouf, Mideast Monitor, January–March 2008
- Who's who in Syria's leadership, BBC NewsBBC NewsBBC News is the department of the British Broadcasting Corporation responsible for the gathering and broadcasting of news and current affairs. The department is the world's largest broadcast news organisation and generates about 120 hours of radio and television output each day, as well as online...
, 3 March 2005 - Rami Makhlouf
- Uprising exposes Syria’s economic weaknesses, Financial TimesFinancial TimesThe Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
, 26 April 2011 - Syrian Businessman Becomes Magnet for Anger and Dissent, Anthony Shadid, The New York TimesThe New York TimesThe New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
, 30 April 2011 - رامي مخلوف