Adnan Khashoggi (Arabic: عدنان خاشقجي; 25 July 1935 – 6 June 2017) was a Saudi Arabian businessman known for his lavish business deals and lifestyle. He is estimated to have had a peak net worth of around US$4 billion in the early 1980s.
Khashoggi in the 1980s
|Born||25 July 1935|
Mecca, Saudi Arabia
|Died||6 June 2017 (aged 81)|
Lamia Khashoggi (m. 1979)
(m. 1961; div. 1974)
Shahpari Azam Zanganeh
(m. 1991; div. 2014)
|Children||8, including Nabila Khashoggi|
|Relatives||Samira Khashoggi (sister)|
Soheir Khashoggi (sister)
Dodi Fayed (nephew)
Jamal Khashoggi (nephew)
Emad Khashoggi (nephew)
Family and educationEdit
Khashoggi was born in Mecca, to Mohammad Khashoggi, who was King Abdul Aziz Al Saud's personal doctor. His family is of Turkish origin, although Khashoggi himself also said that he had a Jewish grandfather. Adnan Khashoggi's sister was author Samira Khashoggi who married businessman Mohamed Al-Fayed and was the mother of Dodi Fayed. Another sister, Soheir Khashoggi, is a well-known Arab novelist (Mirage, Nadia's Song, Mosaic). He was an uncle of journalist Jamal Khashoggi.
Khashoggi was educated at Victoria College in Alexandria, Egypt, and the American universities California State University, Chico, Ohio State University, and Stanford University. Adnan Khashoggi left his studies in order to seek his fortune in business.
Khashoggi's early years were spent among some of Saudi Arabia's most influential figures. "While attending school he met Hussein bin Talal, the future King of Jordan. It was at school that Khashoggi first learned the commercial value of facilitating a deal, bringing together a Libyan classmate whose father wanted to import towels with an Egyptian classmate whose father manufactured towels, earning US$1,000 for the introduction. Khashoggi's subsequent education at university would serve as a launchpad for his commercial career."
In one of his first big deals, a large construction company was experiencing difficulties with the trucks that it used on the shifting desert sands. Khashoggi, using money given to him by his father for a car, bought a number of Kenworth trucks, whose wide wheels made traversing the desert considerably easier. Khashoggi made his first US$250,000 leasing the trucks to the construction company, and became the Saudi Arabia-based agent for Kenworth.
In the 1960s and 1970s, Khashoggi helped bring together Western companies and the Saudi Arabian Government to satisfy its infrastructure and defense needs. Between 1970 and 1975, Lockheed paid Khashoggi $106 million in commissions. His commissions started at 2.5% and eventually rose to as much as 15%. Khashoggi "became for all practical purposes a marketing arm of Lockheed. Khashoggi would provide not only an entrée but strategy, constant advice, and analysis", according to Max Helzel, then vice president of Lockheed's international marketing.
A commercial pioneer, he established companies in Switzerland and Liechtenstein to handle his commissions as well as developing contacts with notables such as CIA officers James H. Critchfield and Kim Roosevelt and United States businessman Bebe Rebozo, a close associate of U.S. President Richard Nixon. His yacht, the Nabila, was the largest in the world at the time and was used in the James Bond film Never Say Never Again. After Khashoggi ran into financial problems he sold the yacht to the Sultan of Brunei, who in turn sold it for $29 million to Donald Trump, who sold it for $20 million to Prince Al-Waleed bin Talal as part of a deal to keep his Taj Mahal casino out of bankruptcy.
Khashoggi headed a company called Triad International Holding Company which among other things built the Triad Center in Salt Lake City, which later went bankrupt. He was famed as an arms dealer, brokering deals between US firms and the Saudi government, most actively in the 1960s and 1970s. In the documentary series The Mayfair Set, Saudi author Said Aburish states that one of Khashoggi's first weapons deals was providing David Stirling with weapons for a covert mission in Yemen during the Aden Emergency in 1963. Among his overseas clients were defense contractors Lockheed Corporation (now Lockheed Martin Corporation), Raytheon, Grumman Aircraft Engineering Corporation and Northrop Corporation (the last two of which have now merged into Northrop Grumman).
Triad International is a multi-national private investment corporation that was owned by Khashoggi. Its investments include many notable properties and businesses throughout the world. The company consisted of subsidiary companies, including Triad Management, Triad Properties, Triad Energy, Triad Technology, and Triad Financial resources.
The Global span of the businesses prompted the creation by the Khashoggi family of a board-game called Triopoly which was modeled after the classic game of Monopoly. The various game tiles represented properties and companies owned by Khashoggi and his Triad corporation. The game was manufactured and given to family and friends.
Triad International was formed in the early 1960s and as it grew spanned five continents. The company holdings included hotels, shopping centers, banks, oil refineries, a computer manufacturer, a gold mine, construction companies, car and truck franchises, and a professional sports team, the Utah Jazz.
The company was headquartered in Geneva, Switzerland with its subsidiary companies located in the United States, Canada, and Saudi Arabia.
Khashoggi, through Triad, owned the Mount Kenya Safari Club, known as Ol Pejeta Conservancy, a several hundred acre reserve at the foot of Mount Kenya, San Francisco Town Center East a $250 million property, Long Beach Edgington Oil a $250 million per year oil refinery, Santa Ana based ATV computer systems, Arizona, Colorado Land & Cattle company, Security National bank in Walnut Creek, CA, Barrick gold mine in Toronto, Canada, Saudi Arabian Kenworth, Chrysler and Fiat car and truck dealerships, the National Gypsum company in Saudi Arabia, and Sahuaro Petroleum in Phoenix, AZ.
The company also had major financial interests in Lloyd's of London, The Manera company, Las Brisas Resort in Acapulco, Mexico, The Houston Galleria, National car rental, Pyramid Oasis in Cairo, Egypt, Travel Lodge Australia, Pacific Harbor hotel in Fiji, Beirut Riyadh bank, and the bank of Contra Costa.
Khashoggi's Triad real estate holdings included private residences in Beirut, Lebanon, Jeddah and Riyadh Saudi Arabia, Geneva, Switzerland, Cairo, Egypt, Salt Lake City, Utah, Cone Ranch, Florida, Rome, Italy, Paris and Cannes, France, London, England, and a multi-floor penthouse in Olympic towers in New York.
Khashoggi also owned several private jets, and super-yachts through Triad, including a McDonnell Douglas DC-8 and DC-9, three Boeing 727s, and several smaller business jets and helicopters. His three super-yachts, the Nabila, the Mohammadia, and the Khalida, were named after his children, Nabila, Mohammed, and Khalid.
Khashoggi was implicated in the Iran–Contra affair as a key middleman in the arms-for-hostages exchange along with Iranian arms dealer Manucher Ghorbanifar and, in a complex series of events, was found to have borrowed money for these arms purchases from the Bank of Credit and Commerce International (BCCI) with Saudi and United States backing. His role in the affair created a related controversy when Khashoggi donated millions to the American University in Washington, DC to build a sports arena which would bear his name. Khashoggi was a member of the university's board of trustees from 1983 until his indictment on fraud and other charges in May 1989. Khashoggi was "principal foreign agent" of the United States and helped establish the supranational intelligence partnership known as the Safari Club.
Imelda Marcos affairEdit
In 1988, Khashoggi was arrested in Switzerland, accused of concealing funds, and held for three months. Khashoggi stopped fighting extradition when the U.S. prosecutors reduced the charges to obstruction of justice and mail fraud and dropped the more serious charges of racketeering and conspiracy. In 1990, a United States federal jury in Manhattan acquitted Khashoggi and Imelda Marcos, widow of the exiled Philippine President Ferdinand Marcos, of racketeering and fraud.
Khashoggi was a financier behind Genesis Intermedia, Inc. (formerly NASDAQ: GENI), a publicly traded Internet company based in the US. In 2006, Khashoggi was sued by the U.S. Securities and Exchange Commission for securities fraud. The case was dismissed in 2008 and Khashoggi did not admit or deny the allegations.
Seymour Hersh reportEdit
In January 2003, Seymour Hersh reported in The New Yorker magazine that former U.S. Assistant Secretary of Defense Richard Perle had a meeting with Khashoggi in Marseille in order to use him as a conduit between Trireme Partners, a private venture capital company of which he was one of three principals, and the Saudi government. At the time, Perle was chair of the Defense Policy Board Advisory Committee, a Defense Department advisory group, which provided him with access to classified information and a position to influence defense policy.
Khashoggi told Hersh that Perle talked to him about the economic costs regarding a proposed invasion of Iraq. "'If there is no war,' he told me, 'why is there a need for security? If there is a war, of course, billions of dollars will have to be spent.'"
In the 1960s, Khashoggi married 20-year-old Englishwoman Sandra Daly who converted to Islam and took the name Soraya Khashoggi. They raised one daughter (Nabila) and four sons together (Mohamed, Khalid, Hussein, and Omar). Another daughter, Petrina, was born after the couple divorced in 1974 and was assumed to be Adnan's, until a DNA test in 1999 revealed that her father was Conservative party politician Jonathan Aitken.
In the 1980s, the Khashoggi family occupied one of the largest villa estates in Marbella, Spain, called Baraka, hosting lavish parties. Guests at these parties included film stars, pop celebrities and politicians. In 1985, celebrity reporter Robin Leach reported Khashoggi threw a five-day birthday party in Vienna for his eldest son, and in his heyday, Khashoggi spent $250,000 a day to maintain his lifestyle. He continued to spend lavishly even when he encountered financial problems. His net worth was said to have been down to about 8 million in 1990.
Khashoggi also owned Ol Pejeta Conservancy, in Laikipia County, Kenya known at the time as the Mount Kenya Safari Club. His house has since been converted into a hotel which is run by Serena Hotels.
In popular cultureEdit
- The Richest Man in the World: The Story of Adnan Khashoggi
- The One-Page Proposal: How to Get Your Business Pitch onto One Persuasive Page ISBN 9780062084125
- The Shadow World: Inside the Global Arms Trade
- "Who is Jamal Khashoggi?". VOA. 12 October 2018. Retrieved 12 October 2018.
- Kinzer, Stephen (6 June 2017). "Adnan Khashoggi, High-Living Saudi Arms Trader, Dies at 81". The New York Times. Retrieved 7 June 2017.
- Salmans, Sandra. "Lavish Lifestyle Of a Wheeler-Dealer". Retrieved 5 June 2018.
- David Leigh and Rob Evans (7 June 2007). "Biography: Adnan Khashoggi". The Guardian. London: Guardian News and Media Limited. Retrieved 29 January 2012.
- "About the Bin Laden family". PBS. Retrieved 26 February 2013.
- New York Magazine, "Stepping Out", By Jeanie Kasindorf, 18 Dec 1989, Page 44. https://books.google.com/books?id=NugCAAAAMBAJ&pg=PA37&dq=khashoggi+Jeanie+Kasindorf&hl=en&sa=X&ved=0ahUKEwimvtGk7JjeAhVDYxoKHQi9ACcQ6AEIMTAD#v=snippet&q=grandfather&f=false
- Ponton, Rebecca. "Soheir Khashoggi: Success Is No Mirage". Woman Abroad Magazine. Sept/Oct 2001 (7). Retrieved 7 June 2017.
- Sidhu, Jatswan S. (2009). Historical Dictionary of Brunei Darussalam (2, illustrated ed.). Scarecrow Press. p. 123. ISBN 9780810870789.
- Dominick Dunne. Khashoggi's Fall, Vanity Fair, September 1989; Retrieved 11 February 2012
- "Adnan Khashoggi Obituary 7 June 2017'".
- Cross, Jim; Gessner, Hal (23 February 1985), Adnan Khashoggi, retrieved 5 June 2018
- Stengel, Richard (19 January 1987). "Cover Stories: Khashoggi's High-Flying Realm". Time. p. 5. Archived from the original on 19 September 2008. Retrieved 25 August 2008.
- Roberts, Roxanne (9 October 2015). "Inside the fabulous world of Donald Trump, where money is no problem". The Washington Post. Retrieved 16 August 2016.
- "Utah Company of Khashoggi Goes Bankrupt". Los Angeles Times. Associated Press. 29 January 1987. Retrieved 7 June 2017.
- Mwongela, Ferdinand (21 July 2011). "Ol Pejeta House: Khashoggi's decadent hideout". Standard Digital. Retrieved 7 June 2017.
- Isikoff, Michael; Isikoff, Michael (11 January 1987). "AMERICAN U. DONATION STIRS DEBATE". The Washington Post. ISSN 0190-8286. Retrieved 12 June 2017.
- CHRISTENSEN, DEBORAH (5 May 1989). "In Arresting Move, School's Board Drops Khashoggi". Los Angeles Times. ISSN 0458-3035. Retrieved 7 June 2017.
- "Imelda Marcos Acquitted : Cleared of Looting Philippines to Buy N.Y. Skyscrapers : Khashoggi Also Freed in Blow to Justice Dept". Los Angeles Times. Associated Press. 2 July 1990.
- Yuenger, James (20 July 1989). "Arms Dealer Goes From Riches To Jail". Chicago Tribune. Retrieved 8 April 2016.
- Website of production company Open Media
- Bloomberg News in the New York Times. 14 April 2006 S.E.C. Accuses Saudi Financier and Executive of Stock Fraud
- Edvard Pettersson for Bloomberg news. 1 April 2010 Saudi Financier Khashoggi Settles SEC's GenesisIntermedia Case
- Baer, Robert (2003). Sleeping with the Devil: How Washington Sold Our Soul for Saudi Crude. Crown/Archetype. p. 138. ISBN 9781400053377.
- The New Yorker: Lunch With The Chairman. 17 March 2003.
- "Heiress who casts herself as a struggling actress". The Telegraph. 21 September 1996. Retrieved 8 June 2017.
- Pierre Trudeau, en casa de Khashoggui, La Vanguardia, 6 August 1986; Retrieved 11 February 2012
- Salmans, Sandra (22 February 1985). "Lavish Lifestyle Of a Wheeler-Dealer". The New York Times. Retrieved 24 December 2011.
Khashoggi's retreat at Marbella in southern Spain, an entire mountain with seven villas, a 1,300-acre hunting preserve and what we are told is the world's largest outdoor marble disco floor. We are led through his New York duplex, a $25 million apartment in the Olympic Tower on Fifth Ave.
- "Chasing debtors: Cash-strapped Khashoggi?". The Economist. 25 May 2013.
- Adnan Khashoggi obituary, Michael Gillard, The Guardian, 7 Jun 2017
- "Saudi businessman Khashoggi, 'Onassis of the Arab world,' dies". Muslim Global. Retrieved 8 June 2017.
- "Morto il miliardario Khashoggi: icona di lusso e ricchezza negli anni '80 – Rai News". Rainews.it. 27 November 2013. Retrieved 6 June 2017.
- "Saudi businessman Khashoggi, 'Onassis of the Arab world,' dies". Arab News. Retrieved 7 June 2017.
- "Moving documentary embodies Hank Greenspun, a Las Vegas character". Las Vegas Review Journal. 28 March 2008. Retrieved 7 June 2017.
- "The One Percent". www.hbo.com.
- Murphy, Brian (6 June 2017). "Adnan Khashoggi, Saudi arms merchant and world-class playboy, dies". The Washington Post. Retrieved 7 June 2017.
- Marozzi, Justin (1 November 2011). "The Shadow World: Inside the Global Arms Trade by Andrew Feinstein: review". The Telegraph. Retrieved 7 June 2017.
- "Saudi Arms Dealer Adnan Khashoggi Dead at 81". VOA News. 6 June 2017. Retrieved 7 June 2017.
Adnan Khashoggi Website