Saudi Sheikh launches $10bn lawsuit against Barclays over banking licence fraud
- Sheikh Mohamed Bin Issa Al Jaber says bank caused him huge losses
- Claims Barclays 'hatched a fraudulent' scheme
- Barclays says claim is 'without foundation' and will 'vigorously defend it'
A wealthy Saudi businessman is seeking $10billion (£6.2billion) in damages from Barclays after claiming the bank ‘hatched a fraudulent’ scheme to secure a banking licence in the region which caused huge losses for his hotel and property empire, writes James Salmon.
MBI International and Jadawel International, the property groups owned by Sheikh Mohamed Bin Issa Al Jaber, say Barclays ‘betrayed its duty’ to Jadawel by striking a secret settlement with the Saudi government enabling it to avoid lease payments due on military complexes Jadawel built in 1999.
The lawsuit claims that after the Saudi government defaulted on the repayments, Barclays ‘actively concealed’ that the government paid around £580million to release itself from its obligations.
Seeking damages: A Saudi businessman has launched a $10billion lawsuit against Barclays Bank
Jadawel alleges that it lost billions of dollars in future investment opportunities.
The lawsuit, filed yesterday in New York State Supreme Court, claims Barclays did this to secure the first licence granted to non-Arab lenders in Saudi Arabia since the 1970s.
Last night Barclays (down 2.5p to 220.5p) pointed out that the New York Supreme Court earlier this year rejected attempts by Jadawel to force it to hand over documents.
A spokesman said: ‘This claim follows a failed attempt by the plaintiffs to obtain discovery of documents earlier this year, which the NY Supreme Court denied as it was an unmeritorious fishing expedition. Barclays believes the claim is without foundation and will vigorously defend it.’
Most watched Money videos
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Former Chancellor Nadhim Zahawi to chair Very Group
- BUSINESS LIVE: Nadhim Zahawi to chair The Very Group;...
- How reliable are the most popular used cars? Here's how...
- Cerillion boosted by $11.1m contract with provider of...
- UK Government sells another chunk of NatWest shares
- Diploma shares top FTSE 100 risers after firm raises...
- A MILLION more people have taken on mortgages they will...
- Used car marketplace Cazoo looking for buyers as it nears...
- Evri issues warning over huge rise in smishing scams -...
- I repeatedly bail out my partner from his financial...
- Phoenix Group finance chief to step down from insurer
- Gamestop shares double as 'meme stock' social media...
- London's 'Mr Super Prime' to take centre stage in...
- Digital marketing firm Mission Group snubs takeover offer...
- Police not interested in shoplifting, says M&S as thefts...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Anglo strikes out alone - but can it survive a bid...
- Taxpayer stake in NatWest falls below 27% as Treasury...