Hussein Salem
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Hussein Salem (11 November 1933 – 12 August 2019) ( ar, حسين سالم) was an
Egyptian Egyptian describes something of, from, or related to Egypt. Egyptian or Egyptians may refer to: Nations and ethnic groups * Egyptians, a national group in North Africa ** Egyptian culture, a complex and stable culture with thousands of years of ...
-
Spanish Spanish might refer to: * Items from or related to Spain: **Spaniards are a nation and ethnic group indigenous to Spain **Spanish language, spoken in Spain and many Latin American countries **Spanish cuisine Other places * Spanish, Ontario, Cana ...
businessman, co-owner of the
East Mediterranean Gas Company East Mediterranean Gas Company (EMG) is an owner and operator of thePeace Pipileine Al Arish–Ashkelon pipeline The Arab Gas Pipeline is a natural gas pipeline in the Middle East. It originates near Arish in the Sinai Peninsula and was built ...
(EMG), and ally and advisor to former president
Hosni Mubarak Muhammad Hosni El Sayed Mubarak, (; 4 May 1928 – 25 February 2020) was an Egyptian politician and military officer who served as the fourth president of Egypt from 1981 to 2011. Before he entered politics, Mubarak was a career officer in t ...
. He was also the chairman and CEO of HKS Group, a hospitality company that operates Maritim Jolie Ville Resort in
Sharm El Sheikh Sharm El Sheikh ( ar, شرم الشيخ, ), commonly abbreviated to Sharm, is an Egyptian city on the southern tip of the Sinai Peninsula, in South Sinai Governorate, on the coastal strip along the Red Sea. Its population is approximately 53,670 ...
. He was described as "one of the most secretive businessmen in Egypt", a mogul, and Mubarak's close confidant. He was known as the "Father of Sharm El Sheikh" due to his resort development activities. Per
Suisse secrets Suisse secrets was a February 2022 leak of details of more than CHF 100 billion (roughly US$108.5bn, €95.5bn or £80bn) held in nominee accounts linked to over 30,000 clients of Credit Suisse, the largest ever leak from a major Swiss bank. ...
held accounts at
Credit Suisse Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global " ...
for years, even after he had been publicly accused of bribery.


Early life and education

Salem was born on 11 November 1933 in
Sinai Peninsula The Sinai Peninsula, or simply Sinai (now usually ) (, , cop, Ⲥⲓⲛⲁ), is a peninsula in Egypt, and the only part of the country located in Asia. It is between the Mediterranean Sea to the north and the Red Sea to the south, and is a l ...
,
Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Mediter ...
. Records of the Egyptian Administrative Control Authority indicate, however, that he was born in the
Helwan Helwan ( ar, حلوان ', , cop, ϩⲁⲗⲟⲩⲁⲛ, Halouan) is a city in Egypt and part of Greater Cairo, on the bank of the Nile, opposite the ruins of Memphis. Originally a southern suburb of Cairo, it served as the capital of the now de ...
suburb of Cairo, although ''
al-Ahram Weekly ''Al-Ahram Weekly'' is an English-language weekly broadsheet printed by the Al-Ahram Publishing House in Cairo, Egypt. History and profile ''Al Ahram Weekly'' was established in 1991 by the ''Al-Ahram'' newspaper, which also runs a French-langu ...
'' states the latter location was actually Salem's father's birthplace. His father, Kamal el-Din, worked as a school teacher, but died of
typhoid fever Typhoid fever, also known as typhoid, is a disease caused by '' Salmonella'' serotype Typhi bacteria. Symptoms vary from mild to severe, and usually begin six to 30 days after exposure. Often there is a gradual onset of a high fever over several ...
during Salem's childhood. Afterward, his family moved to an apartment in the Korba area of Cairo's Heliopolis district.Hussein Salem: A businessman from the times of crony capitalism, Part 1
. ''
Al-Ahram Weekly ''Al-Ahram Weekly'' is an English-language weekly broadsheet printed by the Al-Ahram Publishing House in Cairo, Egypt. History and profile ''Al Ahram Weekly'' was established in 1991 by the ''Al-Ahram'' newspaper, which also runs a French-langu ...
''. 21 June 2011.
His mother, Hosnia Tabozoda, who was of
Turkish Turkish may refer to: *a Turkic language spoken by the Turks * of or about Turkey ** Turkish language *** Turkish alphabet ** Turkish people, a Turkic ethnic group and nation *** Turkish citizen, a citizen of Turkey *** Turkish communities and mi ...
origin, encountered great difficulty providing for her children with her late husband's pension, forcing Salem, the eldest of his two siblings to become the family's main provider. He also had five half-siblings from his father's first wife (Hosnia was his second wife), but was not responsible for them, most of whom were older than Salem. Although it has not been proven, he allegedly has
Bedouin The Bedouin, Beduin, or Bedu (; , singular ) are nomadic Arab tribes who have historically inhabited the desert regions in the Arabian Peninsula, North Africa, the Levant, and Mesopotamia. The Bedouin originated in the Syrian Desert and A ...
origins. Some sources say this was a rumor Salem allegedly spread in order to help him secure future business deals with the Bedouin tribes of the southern
Sinai Peninsula The Sinai Peninsula, or simply Sinai (now usually ) (, , cop, Ⲥⲓⲛⲁ), is a peninsula in Egypt, and the only part of the country located in Asia. It is between the Mediterranean Sea to the north and the Red Sea to the south, and is a l ...
. The only known relation Salem had with the Bedouin was through marriage; his half-sibling Samiha married into the Abaydah tribe of
Ismailia Ismailia ( ar, الإسماعيلية ', ) is a city in north-eastern Egypt. Situated on the west bank of the Suez Canal, it is the capital of the Ismailia Governorate. The city has a population of 1,406,699 (or approximately 750,000, includi ...
and Sinai. During his childhood, Salem's sustained an eye injury, disallowing him from entering the mandatory military service. He graduated from the Heliopolis Public High School, but had to repeat his senior year. In 1956, he graduated from
Cairo University Cairo University ( ar, جامعة القاهرة, Jāmi‘a al-Qāhira), also known as the Egyptian University from 1908 to 1940, and King Fuad I University and Fu'ād al-Awwal University from 1940 to 1952, is Egypt's premier public university ...
's Faculty of Commerce. Shortly after receiving his degree, one of Salem's relatives secured a job for him as a clerk in the Textile Support Fund, which then-president
Gamal Abdel Nasser Gamal Abdel Nasser Hussein, . (15 January 1918 – 28 September 1970) was an Egyptian politician who served as the second president of Egypt from 1954 until his death in 1970. Nasser led the Egyptian revolution of 1952 and introduced far-re ...
had established to alleviate high unemployment rates, particularly among the youth. Later in 1956, Nasser nationalized the
Suez Canal Company Suez ( ar, السويس '; ) is a seaport city (population of about 750,000 ) in north-eastern Egypt, located on the north coast of the Gulf of Suez (a branch of the Red Sea), near the southern terminus of the Suez Canal, having the same boun ...
, prompting a tripartite assault on Egypt by the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
and
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
. Although Salem favored open markets, there has been no indication that he opposed the canal's nationalization, although he resented Nasser's decision to nationalize the holdings of top capitalists in Egypt in 1961. In 1959, he married Nazimah Abdel-Hamid Ismail and the couple moved into a three-bedroom apartment in the Golf area of Heliopolis. The monthly rent was (Salem's monthly salary was ). The couple's first child, Khaled, was born in 1961, followed by the birth of their daughter, Magda, two years later. According to one of his neighbors at the time, Salem did not own a car or many luxuries for most of the 1960s and early 1970s. He enrolled Khaled into Saint George, a private British school in Heliopolis, an education that Salem had to frequently borrow money to pay for. He died on 12 August 2019 in Spain.


Career


Gamel Abdel Nasser era


Egyptian intelligence in Baghdad

During the early 1960s Salem had landed a job as the branch director for the Arab Company for External Trade in
Casablanca Casablanca, also known in Arabic as Dar al-Bayda ( ar, الدَّار الْبَيْضَاء, al-Dār al-Bayḍāʾ, ; ber, ⴹⴹⴰⵕⵍⴱⵉⴹⴰ, ḍḍaṛlbiḍa, : "White House") is the largest city in Morocco and the country's econom ...
,
Morocco Morocco (),, ) officially the Kingdom of Morocco, is the westernmost country in the Maghreb region of North Africa. It overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria to ...
which paid per month. A former CEO at the company—which was allegedly a front for the Egyptian Intelligence Services—remembered Salem as a very private employee who traveled abroad often. The CEO believes Salem was supervising arms deals to help nationalist struggles against
European colonialism The historical phenomenon of colonization is one that stretches around the globe and across time. Ancient and medieval colonialism was practiced by the Phoenicians, the Greeks, the Turkish people, Turks, and the Arabs. Colonialism in the mode ...
in
North Africa North Africa, or Northern Africa is a region encompassing the northern portion of the African continent. There is no singularly accepted scope for the region, and it is sometimes defined as stretching from the Atlantic shores of Mauritania in ...
, in line with Nasser's foreign policy at the time. In Casablanca Salem befriended
Amin Howeidi Amin Howeidi (22 September 1921–31 October 2009) was an Egyptian military leader, author and defense minister under Nasser's rule. Early life and education Howeidi was born in Munufiya on 22 September 1921. He attended the Egyptian Military A ...
who served as Egypt's ambassador to Morocco at the time. That same year, 1963, Howeidi was appointed ambassador to
Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
and he brought Salem with him to serve as the Arab Company's branch director in
Baghdad Baghdad (; ar, بَغْدَاد , ) is the capital of Iraq and the second-largest city in the Arab world after Cairo. It is located on the Tigris near the ruins of the ancient city of Babylon and the Sassanid Persian capital of Ctesiphon ...
. Salem began cultivating relationships with the high-ranking staff of the Egyptian embassy in Iraq, particularly Amin Yousri the embassy's press-attache and Ibrahim Yousri the embassy's second secretary. ''
Al-Ahram Weekly ''Al-Ahram Weekly'' is an English-language weekly broadsheet printed by the Al-Ahram Publishing House in Cairo, Egypt. History and profile ''Al Ahram Weekly'' was established in 1991 by the ''Al-Ahram'' newspaper, which also runs a French-langu ...
'' editor Karem Yehia states that the Yousris claim Salem was a "likable" person, but not "intellectually sophisticated". Howeidi mentored Salem on international politics by enrolling him in study groups particularly after Howeidi was appointed by then-President
Gamal Abdel Nasser Gamal Abdel Nasser Hussein, . (15 January 1918 – 28 September 1970) was an Egyptian politician who served as the second president of Egypt from 1954 until his death in 1970. Nasser led the Egyptian revolution of 1952 and introduced far-re ...
to the post of Intelligence Director in 1967 following Egypt's defeat in the
Six-Day War The Six-Day War (, ; ar, النكسة, , or ) or June War, also known as the 1967 Arab–Israeli War or Third Arab–Israeli War, was fought between Israel and a coalition of Arab world, Arab states (primarily United Arab Republic, Egypt, S ...
with
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
. According to Ibrahim Yousri, Salem gained Howeidi's trust primarily because he was able to regularly provide Howeidi with useful intelligence due to his connections with business circles in Iraq which would have otherwise been difficult to attain through the Egyptian embassy. Amin Yousri claims Salem cultivated good relationships with other Egyptian embassy employees by helping them buy Mercedes vehicles at low interest rates offered by the Iraqi Central Bank. Despite his relative success in Baghdad, Salem did not find his work there as particularly fulfilling and requested Howeidi a number of times for transfer to Europe where he said he had "friends" who could help him start a private business. Instead, Salem was sent on ambassadorial missions to
Arab States of the Persian Gulf The Arab states of the Persian Gulf refers to a group of Arab states which border the Persian Gulf. There are seven member states of the Arab League in the region: Bahrain, Kuwait, Iraq, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. ...
. There he succeeded in establishing his own personal networks that would later become useful during his future business ventures in those states. Relations between Howeidi and Salem deteriorated following Nasser's death in 1970 and the succession of
Anwar Sadat Muhammad Anwar el-Sadat, (25 December 1918 – 6 October 1981) was an Egyptian politician and military officer who served as the third president of Egypt, from 15 October 1970 until his assassination by fundamentalist army officers on 6 ...
to the presidency afterward. Howeidi, an ardent supporter and symbol of Nasser's
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
and
nationalist Nationalism is an idea and movement that holds that the nation should be congruent with the state. As a movement, nationalism tends to promote the interests of a particular nation (as in a group of people), Smith, Anthony. ''Nationalism: The ...
struggles, was imprisoned by Sadat in 1971; Salem, uninterested in Nasser's ideals subsequently abandoned Howeidi, did not visit him in prison and ignored his wife's phone calls. Nonetheless, Salem lost his job in the Intelligence Directorate along with its perks. His half-brother Abdel Hamid later managed to secure Salem a job at Nasr Import and Export Company that same year by petitioning a senior official in Sadat's administration.


Anwar Sadat era


Business in Abu Dhabi

Unhappy at the loss of the prestige and perks of his former intelligence job, Salem decided to move to
Abu Dhabi Abu Dhabi (, ; ar, أَبُو ظَبْيٍ ' ) is the capital and second-most populous city (after Dubai) of the United Arab Emirates. It is also the capital of the Emirate of Abu Dhabi and the centre of the Abu Dhabi Metropolitan Area. ...
,
United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
(UAE) in 1972 where he became CEO of the Arab Emirates Trade Company, an importer of food supplies for UAE. He was set up there by former Egyptian economy minister Hassan Abbas Zaki, an economic adviser to the president of the UAE, Sheikh Zayed, at the time. Using his position, between 1972 and 1977 Salem reportedly developed extensive business relations in several Western countries, as well as
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
. Through these contacts, he gained considerable wealth and began transferring large amounts of cash to
Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
where he also purchased a number of hotels. Starting in 1977 Salem's financial situation began to improve considerably. Following then-Egyptian President
Anwar Sadat Muhammad Anwar el-Sadat, (25 December 1918 – 6 October 1981) was an Egyptian politician and military officer who served as the third president of Egypt, from 15 October 1970 until his assassination by fundamentalist army officers on 6 ...
's visit to Israel on 19 November 1977, the UAE downgraded relations with Egypt. Salem had still managed to maintain good relations with Emirati officials, but nonetheless left the UAE that same year. The primary reason behind Salem's departure was not linked to the political situation between the two countries, however. Instead he was said to have been forced out by some Emirati business families who claimed Salem's operations hurt them financially. According to Yehia, some sources say Salem fled hours before his company's headquarters were raided by auditing officials while other sources claim he was actually arrested and spent a number of days in an Emirati jail. Sayed Ali al-Shorafa, Grand High Chamberlain (Director)of the UAE's President's Court, Stated Salem was not charged with a crime and was subsequently pardoned by Sheikh Zayed. He also denied rumors that Salem had amassed $20 million in Abu Dhabi, stating "These are exaggerations ... We did not have anyone in the Emirates who had more than a million
Dirham The dirham, dirhem or dirhm ( ar, درهم) is a silver unit of currency historically and currently used by several Arab and Arab influenced states. The term has also been used as a related unit of mass. Unit of mass The dirham was a un ...
s at that time." Contrarily, Amin Yousri claimed that Salem had directly informed him that he acquired $200 million in the UAE which he transferred to his Swiss bank accounts. He would later relocate half of his money to
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
, according to Yousri, where he gained Spanish citizenship and bought a mansion in
Majorca Mallorca, or Majorca, is the largest island in the Balearic Islands, which are part of Spain and located in the Mediterranean. The capital of the island, Palma, is also the capital of the autonomous community of the Balearic Islands. The Bal ...
.


Return to Egypt and move to Washington, D.C.

Salem returned to Egypt following his business ventures in the UAE. In addition to his history with the Egyptian government, he had established relations with highly influential figures in Egypt by appointing their sons or relatives to positions in his company in the UAE. In late 1977, not long after arriving in Egypt, he met
Hosni Mubarak Muhammad Hosni El Sayed Mubarak, (; 4 May 1928 – 25 February 2020) was an Egyptian politician and military officer who served as the fourth president of Egypt from 1981 to 2011. Before he entered politics, Mubarak was a career officer in t ...
whom Sadat appointed vice president in 1975. It was only in 1977 that things began to shape up for Salem. After returning to Egypt from a short assignment in the United Arab Emirates, he moved with his family from his Golf area apartment into a new unit in an apartment building he constructed in Saba Emarat area of Heliopolis. For two years Salem lived in his old apartment in
Cairo Cairo ( ; ar, القاهرة, al-Qāhirah, ) is the capital of Egypt and its largest city, home to 10 million people. It is also part of the largest urban agglomeration in Africa, the Arab world and the Middle East: The Greater Cairo metro ...
's affluent Heliopolis neighborhood. Although he was a millionaire by then, he took a job as an employee of the economy ministry, tasked with managing commercial deals. He reportedly kept his other business ventures private while working in the government. In 1979, Prime Minister
Mustafa Khalil Mustafa Khalil ( ar, مصطفى خليل, ) (18 November 1920 – 7 June 2008) was an Egyptian politician and Prime Minister of Egypt from October 2, 1978 to May 15, 1980. Khalil also served as the Egyptian Foreign Minister from February 17, ...
appointed him Commissioned Minister of Trade at the Egyptian embassy in
Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
That same year, Salem became CEO of the Egyptian American Transportation Company (ETSCO), established in
Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...
with a branch in Cairo. On 9 October 1982, an article was published by ''
The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'' entailing violations the company committed regarding various arms deals following the signing of the
Camp David Accords The Camp David Accords were a pair of political agreements signed by Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin on 17 September 1978, following twelve days of secret negotiations at Camp David, the country retrea ...
in 1979. The arms deals involved using money from the
Persian Gulf states The Arab states of the Persian Gulf refers to a group of Arab states which border the Persian Gulf. There are seven member states of the Arab League in the region: Bahrain, Kuwait, Iraq, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. ...
to fund
Mujahideen ''Mujahideen'', or ''Mujahidin'' ( ar, مُجَاهِدِين, mujāhidīn), is the plural form of ''mujahid'' ( ar, مجاهد, mujāhid, strugglers or strivers or justice, right conduct, Godly rule, etc. doers of jihād), an Arabic term th ...
efforts against the
Soviet occupation of Afghanistan The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
and dictatorships in
Latin America Latin America or * french: Amérique Latine, link=no * ht, Amerik Latin, link=no * pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
. Kamal Hassan Ali, the Egyptian minister of foreign affairs at the time, vehemently denied the allegations against ETSCO, calling them "wicked". He claimed the Egyptian government found no evidence of foul play on the part of the company during its year-long investigation of the incident. Ali went on to threaten to sue "anyone who dares to smear his name or any other Egyptian official" in American courts.Yehia, Karem
Hussein Salem: A businessman from the times of crony capitalism (part three)
. ''
Al-Ahram Weekly ''Al-Ahram Weekly'' is an English-language weekly broadsheet printed by the Al-Ahram Publishing House in Cairo, Egypt. History and profile ''Al Ahram Weekly'' was established in 1991 by the ''Al-Ahram'' newspaper, which also runs a French-langu ...
''. 24 June 2011
ABC News ABC News is the news division of the American broadcast network ABC. Its flagship program is the daily evening newscast ''ABC World News Tonight, ABC World News Tonight with David Muir''; other programs include Breakfast television, morning ...
ran a televised documentary in early March 2011 about what it described as corruption that was built in the Camp David Accords and American military aid to Egypt. The network highlighted what it called the role of
Hosni Mubarak Muhammad Hosni El Sayed Mubarak, (; 4 May 1928 – 25 February 2020) was an Egyptian politician and military officer who served as the fourth president of Egypt from 1981 to 2011. Before he entered politics, Mubarak was a career officer in t ...
, Mounir Thabet (
Suzanne Mubarak Suzanne Mubarak ( ar, سوزان مبارك , née Thabet; born 28 February 1941) is the widow of Egyptian former president Hosni Mubarak and was the First Lady of Egypt during her husband's presidential tenure from 14 October 1981 to 11 Februar ...
's brother) and the late Field Marshal Abu-Ghazalah in ETSCO's illegal ventures. The aforementioned men received millions of dollars by maintaining an operation filled with illegal commissions, bribes and bidding violations. Salem paid an $8 million fine to
The Pentagon The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...
in 1984 to settle the case. However, Amin Yousri would later discover through a memo sent from the Egyptian embassy to the Foreign Ministry in Cairo that Salem actually paid the Pentagon a much larger figure than was publicly announced. The memo mentioned that Salem's lawyers reached a $60 million settlement with the US government. A former partner in ETSCO who was also a
CIA The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian intelligence agency, foreign intelligence service of the federal government of the United States, officially tasked with gat ...
agent, Edwin Wilson, told ABC that Salem was a "front man" for Mubarak, according to anonymous employees.


Hosni Mubarak era


Investment in Sinai tourism

Sadat was assassinated in 1981 and was succeeded, later that year, by his vice president Hosni Mubarak who Salem had befriended and worked with in previous years. By 1987, the southern
Sinai Peninsula The Sinai Peninsula, or simply Sinai (now usually ) (, , cop, Ⲥⲓⲛⲁ), is a peninsula in Egypt, and the only part of the country located in Asia. It is between the Mediterranean Sea to the north and the Red Sea to the south, and is a l ...
experienced a boom in real estate investment, particularly in
Sharm al-Sheikh Sharm El Sheikh ( ar, شرم الشيخ, ), commonly abbreviated to Sharm, is an Egyptian city on the southern tip of the Sinai Peninsula, in South Sinai Governorate, on the coastal strip along the Red Sea. Its population is approximately 53,670 ...
. That year, Salem had commissioned the construction of a very large hotel called the Jolie Ville in that city. Suspicions were raised on Salem's acquisitions of property in Sinai since it was notably difficult for locals to acquire small parcels of land there and Salem had little background in construction. High-ranking officials, including Abdel Moneim Said, the governor-general of
South Sinai South Sinai Governorate ( ar, محافظة جنوب سيناء ') is the least populated governorate of Egypt. It is located in the east of the country, encompassing the southern half of the Sinai Peninsula. Saint Catherine's Monastery, an Easte ...
, and Hamid Khodeir, a local council member of the nearby city of
el-Tor El Tor ( ar, الطور ''/'' ), also romanized as ''Al-Tur'' and ''At-Tur'' and known as ''Tur Sinai'', formerly Raithu, is a small city and the capital of the South Sinai Governorate of Egypt. The name of the city comes from the Arabic term for ...
, claim Salem gained contracts for the land along the southern Sinai coast due to his close friendships with Mubarak and his son
Gamal Gamal ( ar, جمال) is an Arabic surname and male given name. Notable people with this name إبراهيم ابومياله: Surname * Amr Gamal, (born 1991) Egyptian footballer * Mazen Gamal (born 1986), Egyptian squash player *Raghda Gamal, Yem ...
. From 1987 until the early 21st-century, Salem had established tourism empire in Sinai, owning several hotels. Major expansions to his business operations in Sinai included a mass conference hall, a golf course, a luxurious mosque for Mubarak's personal use, and numerous palaces, one of which he sold to Mubarak. In 1997, the Jolie Ville hosted a large conference sponsoring peace in the Middle East related to the
Arab–Israeli conflict The Arab–Israeli conflict is an ongoing intercommunal phenomenon involving political tension, military conflicts, and other disputes between Arab countries and Israel, which escalated during the 20th century, but had mostly faded out by the ...
.Yehia, Karem
Hussein Salem: A businessman from the times of crony capitalism (part four)
. ''
Al-Ahram Weekly ''Al-Ahram Weekly'' is an English-language weekly broadsheet printed by the Al-Ahram Publishing House in Cairo, Egypt. History and profile ''Al Ahram Weekly'' was established in 1991 by the ''Al-Ahram'' newspaper, which also runs a French-langu ...
''. 31 August 2011.
The local Bedouins who lived along the southern Sinai coast privately criticized Salem for ignoring their community by not building any projects in the local areas. Members of the el-Tor local council complained that his operations further marginalized the Bedouins by not contributing to their welfare, increasing their sense of marginalization. Abdel-Moneim Said agreed, stating "Salem did not contribute anything that benefited ordinary people in the governorate." In 2002, Said claimed that after the local government constructed a strip-like "Walk" adjacent to the Jolie Ville Hotel intended for locals to open business along, Mubarak ordered the governor to hand it over to Salem.


Egyptian–Israeli gas deals

In 1993, following the 1993 Oslo Agreements between the Israelis and
Palestinians Palestinians ( ar, الفلسطينيون, ; he, פָלַסְטִינִים, ) or Palestinian people ( ar, الشعب الفلسطيني, label=none, ), also referred to as Palestinian Arabs ( ar, الفلسطينيين العرب, label=non ...
which Mubarak helped broker, Israel and Egypt began work on a gas pipeline to supply the former with
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...
and to build a petroleum refinery in Sinai, the first privately owned refinery in the Arab Middle East. Mubarak awarded Salem licenses to work on both projects. Salem's relations with Israeli business circles dates back to the 1970s during his tenure at the Washington D.C. embassy, including when the Israelis and Egyptians were negotiating Camp David. In 1996, Salem sold most of his shares in the new refinery company, Midor, and made a substantial profit. In 2007, he sold most of his shares in the
East Mediterranean Gas Company East Mediterranean Gas Company (EMG) is an owner and operator of thePeace Pipileine Al Arish–Ashkelon pipeline The Arab Gas Pipeline is a natural gas pipeline in the Middle East. It originates near Arish in the Sinai Peninsula and was built ...
, a year before the pipeline actually pumped any gas. According to ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', Israel gained 40% of its gas needs from below-market price Egyptian gas exports. The Israeli newspaper ''
Yediot Aharonoth ''Yedioth Ahronoth'' ( he, יְדִיעוֹת אַחֲרוֹנוֹת, ; lit. ''Latest News'') is a national daily newspaper published in Tel Aviv, Israel. Founded in 1939 in British Mandatory Palestine, ''Yedioth Ahronoth'' is the largest paid n ...
'' described Salem as the "number one man" of the normalization process between the two states.Yehia, Karem
Hussein Salem: A businessman from the times of crony capitalism – Part five
. ''Al-Ahram Weekly''. 26 June 2011.


Revolution and trial


Flight to Spain and arrest

Salem fled Egypt on 3 February 2011 during the
Egyptian Revolution of 2011 The 2011 Egyptian revolution, also known as the 25 January revolution ( ar, ثورة ٢٥ يناير; ), began on 25 January 2011 and spread across Egypt. The date was set by various youth groups to coincide with the annual Egyptian "Police ho ...
to Spain, a country in which he held dual citizenship. A warrant for his arrest was issued by
Interpol The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an international organization that facilitates worldwide police cooperation and cri ...
in May 2011. He was later arrested at his home in
La Moraleja La Moraleja is an affluent residential district of Alcobendas municipality in northern Community of Madrid, Spain, in the Madrid metropolitan area; located next to El Soto and El Encinar de los Reyes. The Spanish version of Greenwich, it is home t ...
,
Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
,
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
on 14 June by Spanish authorities on separate Spanish charges. Salem was accused by Egyptian authorities of corruption on charges he illegally gained public funds by obtaining a monopoly on the sale of gas to Israel, and as a result, squandering $714 million in public funds (independent experts believe the amount squandered is much higher) by selling Egyptian natural gas to Israel at below market prices. Additionally, Egyptian investigators alleged that Salem was permitted by former President Mubarak to buy a large piece of valuable land on the Red Sea coast for development from the Egyptian government at a large discount. In exchange, prosecutors allege that Salem gave Mubarak and his family five luxury villas worth about $4.5 million, including a 161,000-square-foot seaside estate in
Sharm el-Sheikh Sharm El Sheikh ( ar, شرم الشيخ, ), commonly abbreviated to Sharm, is an Egyptian city on the southern tip of the Sinai Peninsula, in South Sinai Governorate, on the coastal strip along the Red Sea. Its population is approximately 53,670 ...
. Following his arrest, Spanish judges set his bail at €27 million (approximately $33 million), €12 million for the Spanish charges and €15 million for the Egyptian charges.


Trial in Egypt and extradition fight

Salem's trial on the charges related to his sale of gas to Israel at deflated prices began in Egypt on 3 August 2011
in absentia is Latin for absence. , a legal term, is Latin for "in the absence" or "while absent". may also refer to: * Award in absentia * Declared death in absentia, or simply, death in absentia, legally declared death without a body * Election in absen ...
. In March 2012, the
Spanish National Court The Audiencia Nacional (; en, National Court) is a centralised court in Spain with jurisdiction over all of the Spanish territory. It is specialised in a certain scope of delinquency, having original jurisdiction over major crimes such as those ...
ruled that Salem and his son Khaled Salem should be
extradited Extradition is an action wherein one jurisdiction delivers a person accused or convicted of committing a crime in another jurisdiction, over to the other's law enforcement. It is a cooperative law enforcement procedure between the two jurisdict ...
to Egypt to face charges. The Spanish authorities had already frozen $47 million in his accounts and seized homes he owned worth $14 million, including seven in the resort of Marbella. Spain demanded assurances from Egyptian authorities that in exchange for the defendants extradition the two would be heard in front of new juries than the ones currently in trial since the previous August and that the men would have the choice to return to Spain to serve their sentences. Then in June 2012, the Cairo Criminal Court found Salem, in absentia, and former Petroleum Minister
Sameh Fahmi Sameh Fahmi (born 14 August 1949) is an Egyptians, Egyptian engineer and politician who served as Ministry of Petroleum and Mineral Resources (Egypt), oil minister of Egypt for 12 years from 1999 to 2011. Early life and education Fahmi was born ...
guilty and sentenced them each to 15 years in prison. In 2016, Salem signed a deal to make it possible for him and his family to return to Egypt without the risk of facing prosecution. The deal required that Salem give up 75 percent of his wealth. Several wealthy businessmen had fled Egypt after the uprising in order to avoid the corruption charges. There was a wide effort for reconciliation with these businessmen and the deal with Salem was part of it. However, Salem resided in Spain until his death due to the Spanish authorities' refusal to extradite him.


See also

*
Ahmed Ezz (businessman) Ahmed Ezz ( ar, أحمد عز; born 12 January 1959) is an Egyptian businessman and one-time politician, the owner of Ezz Steel and the former chairman of Egypt's national assembly's budget committee. He was also the organizational secretary of ...


Further reading


Salem's release in Spain

Fugitive caught in Spain is not out on bail: judicial official

Mubarak confidant can't post bail

Salem to be kept under house arrest pending trial in Spanish court

Spain freezes $45 million in the account of Mubarak associate Hussein Salem

Mubarak associate arrested in Spain


References

{{DEFAULTSORT:Salem, Hussein 1933 births Egyptian Sunni Muslims Money launderers National Democratic Party (Egypt) politicians Businesspeople from Cairo People of the Egyptian revolution of 2011 Egyptian people of Turkish descent Spanish people of Turkish descent 2019 deaths