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.”


Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd

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Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd

RIYADH: Saudi Arabia’s refinery crude exports surged 23 percent in September compared to the previous month, to reach 1.54 million barrels per day – the highest level for almost two years.

According to figures from the Joint Organizations Data Initiative, the increase to a 23-month high was fueled by strong demand for refined products, including diesel, motor gasoline, aviation gasoline, and fuel oil. 

Diesel led the export mix, accounting for 47 percent of shipments, with volumes rising 35 percent month on month to 727,000 bpd. Motor and aviation gasoline made up 23 percent of exports, while fuel oil contributed 7 percent. 

Refinery output in Saudi Arabia remained steady at 2.76 million bpd, with diesel representing 44 percent of refined products, followed by motor and aviation gasoline at 25 percent, and fuel oil at 17 percent. 

Crude oil exports rose modestly by 1.41 percent to 5.75 million bpd, while production edged down by 0.19 percent to 8.97 million bpd. 

Despite the rise in exports, domestic petroleum demand dropped sharply by 267,000 bpd to 2.62 million bpd, possibly due to seasonal factors and improved efficiency. 

OPEC announced in November that eight key OPEC+ nations, including Saudi Arabia, Russia, and Iraq, have agreed to extend voluntary production cuts of 2.2 million bpd through December.  

Initially introduced in 2023 to stabilize the oil market, the cuts reflect the group’s commitment to the Declaration of Cooperation, with plans to offset overproduction by September 2025. Iraq, along with Russia and Kazakhstan, reaffirmed adherence to the agreement and compensation schedules earlier this month.  

Direct crude usage 

Saudi Arabia’s direct crude oil burn dropped significantly in September, falling by 296,000 bpd compared to August to 518,000 bpd — a 36.4 percent decline and the lowest level in five months. 

This decline is largely attributed to seasonal temperature changes, as the weather begins to cool from the peak summer heat, reducing the demand for air conditioning and, consequently, the need for crude oil in power generation. 

Compared to September last year, the lower burn levels also reflect the Kingdom’s ongoing efforts to enhance energy efficiency and diversify its power sources. 

By expanding its natural gas network and scaling up renewable energy projects, the Kingdom is reducing its reliance on crude oil for electricity generation, aligning with its Vision 2030 strategy for a sustainable and diversified energy mix. 


More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties

Updated 15 min 18 sec ago
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More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties

JEDDAH: Representatives from 72 Saudi firms are part of a group visiting Poland and Slovakia in a bid to increase trade with the European countries.

Delegates from Federation of Saudi Chambers are also part of the trip, which will see high-level economic meetings involving senior government officials and private sector representatives. Their objective is to explore investment opportunities and sign several agreements and commercial partnerships.

The delegation, led by Chairman of the Federation of Saudi Chambers Hassan bin Mujib Al-Huwaizi, includes over 72 business representatives from various economic sectors, along with governmental entities and authorities, according to the Saudi Press Agency.

In August, the Kingdom and Poland established a joint business council for the 2024-2028 term to boost trade and investment between the two countries. The move is part of the nation’s broader strategy to deepen economic ties with Europe, with a particular focus on Poland, one of the continent’s largest economies.

Poland has seen impressive growth in its agri-food sector, with exports reaching a record €47.9 billion ($51.1 billion) in 2023 — a €10 billion increase from the previous year.

In 2023, Saudi Arabia’s trade exchange with Poland reached SR33.7 billion. The Kingdom’s primary exports to Poland include mineral products and plastics, while Poland’s main exports to the Arab country consist of tobacco, machinery, and mechanical appliances.

The relationship between Saudi Arabia and Slovakia has also witnessed growth following the official opening of the Slovak Embassy in Riyadh in recent years. Additionally, bilateral trade has increased significantly, highlighting untapped investment opportunities.

The delegation will begin its visit to Poland by holding the Saudi-Polish Business Council meeting, a joint forum, and bilateral meetings between representatives.

In Slovakia, the delegation will host the Saudi-Slovak Business Forum, conduct meetings between companies from both sides and sign an agreement to establish a joint business council.

Through its recent series of international visits to ten countries, the federation is leading efforts to open new markets and opportunities for the Kingdom’s backers and to boost trade and investment exchanges with countries worldwide, in alignment with the aspirations of Saudi Vision 2030.


Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia

Updated 2 min 31 sec ago
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Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia

JEDDAH: Saudi Arabia’s Black Arrow Tire Co., or Blatco, has partnered with Thailand’s Golden Star Rubber Co. to build the Middle East’s largest tire manufacturing facility in Yanbu, with a $470 million investment. 

The plant will initially produce 4 million tires annually for passenger vehicles, with plans to expand production to 6 million tires per year, including truck and bus tires.

The Yanbu facility is set to boost Saudi Arabia’s industrial capabilities and will create more than 2,000 local jobs. The partnership will supply the facility with the natural rubber required for tire production in the Kingdom. 

The Saudi tire market, which produced 22.6 million units in 2023, is projected to grow at a compound annual growth rate of 1.26 percent, reaching 25.5 million units by 2032, according to market research firm IMARC Group. 

Largely import-driven, the sector is dominated by Chinese tire brands due to their affordability and availability. However, flagship brands have gained traction in recent years, thanks to their higher quality and longer product lifecycles, the report added.

The ceremony to mark the deal, signed by Blatco Chairman Abdullah Al-Wahibi and Golden Star Rubber Chairman Amir Zafar, was also attended by Hassan Al-Huwaizi, president of the Federation of Saudi Chambers of Commerce, Al-Ekhbariya reported. 

The agreement aligns with Vision 2030’s goals to localize industries, transfer knowledge, and support domestic content. The partnership is also supported by the Saudi-Thai Business Council, aimed at strengthening commercial and investment ties between Saudi Arabia and Thailand. 

The plant will be situated in the Kingdom’s industrial city on the Red Sea, under the Royal Commission for Jubail and Yanbu. Blatco officials anticipate that 50 percent of production will be consumed locally, with the remainder to be exported to regional markets. 

Earlier this year, Blatco signed a 20-year technology export agreement with South Korea’s Kumho Tire. As part of the deal, Kumho Tire agreed to supply Blatco with the technology to produce passenger car tires for the Middle East, including Saudi Arabia. 

Founded in Riyadh in 2019, Blatco aims to become a key player in automotive manufacturing and distribution in the region. The company focuses on contributing to Saudi Arabia’s economy, creating jobs, and supporting technology transfer initiatives, according to its website. 

In October 2023, the Kingdom’s Public Investment Fund announced a separate $550 million tire factory in a joint venture with Italy’s Pirelli. 

PIF holds a 75 percent stake in the venture, with Pirelli providing technology and commercial support. The facility, set to begin operations in 2026, will produce tires for passenger vehicles under the Pirelli brand and a new local brand for domestic and regional markets. 


Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions

Updated 4 min 54 sec ago
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Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions

  • IMF’s unplanned visit last week was reportedly prompted by revenue collection shortfall of $685 million during Q1 of current fiscal
  • Agreement for a $7 billion loan program approved in September came with tough measures such as raising taxes, privatization 

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for all sectors to fulfill their tax obligations, days after the IMF concluded an unscheduled visit to Pakistan for discussions on economic policy and reform efforts.

The IMF’s visit last week was widely reported to have been prompted by, among other factors, a shortfall of nearly Rs190 billion ($685 million) in revenue collection during the first quarter of the current fiscal year. The period also saw an external financing gap of $2.5 billion, while Pakistan failed in its bid to sell its national airline, a major setback on the path to privatizing loss-making state-owned enterprises, required by the IMF.

The government wants to increase the tax-to-GDP ratio to 13 percent over the next three years. The ratio stood at 9 percent during 2023-24, according to the Federal Board of Revenue, the country’s main tax collection body. 

“Economic development is only possible when everyone fulfills their share of responsibility,” Sharif was quoted as saying in a statement released by his office after he chaired a meeting of his cabinet to review economic policies. “All sectors must pay taxes to contribute to national progress.”

Pakistan’s economy has faced significant challenges in recent years, including high inflation and fiscal deficits. In May last year, the CPI inflation rate hit a record high of 38 percent but has seen a downward trajectory in recent months, moving to 7.2 percent year-on-year in October.

Pakistan has struggled for decades with boom-and-bust economic cycles, prompting 23 IMF bailouts since 1958.

After wrapping up the visit last week, the IMF had said it was encouraged by Islamabad’s reaffirmed commitment to the economic reforms under the Extended Fund Facility its board had approved in September to reduce vulnerabilities. 

The external financing gap and failure to sell PIA has prompted fears that Pakistan might need to impose new taxes to bridge the shortfall. But Finance Minister Muhammad Aurangzeb has repeatedly said the shortfall will be met only with enforcement to get people to pay their taxes, implying there would not be any new revenue measures.


Dubai’s annual inflation rate slows to hit lowest level in 14 months

Updated 17 min 10 sec ago
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Dubai’s annual inflation rate slows to hit lowest level in 14 months

RIYADH: Dubai’s annual inflation rate slowed again in October, reaching its lowest level in 14 months, official figures showed.  

According to data released by the Dubai Statistics Center, the emirate’s inflation rate reached 2.4 percent in October, driven by a deeper deflation in transport prices, which fell by 10.6 percent compared to an 8 percent decline in September.  

Dubai’s inflation rate has been relatively low compared to other major cities in the region, reflecting the government’s proactive measures to manage price stability and sustain economic growth.   

Amid global inflationary pressures, the emirate’s economy has remained resilient, benefiting from diversified sectors such as tourism, real estate, and trade.  

In light of global and domestic factors, the UAE Central Bank projects inflation in the country as a whole for 2024 at 2.3 percent, compared to 1.6 percent in 2023, due to a moderate increase in commodity prices, wages, and rents. 

The data further indicated a deflation in the tobacco price category to 3.63 percent, similar to that recorded in September.  

The figures also showed slower deflation in the information and communication category, which saw an annual fall of 1.92 percent, compared to a decline of 2.05 percent in September.  

Recreation, sport, and culture prices witnessed a year-on-year drop of 1.74 percent in October, a smaller decrease than the 2.66 percent seen in the previous month.  

The data also revealed that the housing, water, electricity, gas, and other fuels sector witnessed a price increase, with a 7.16 percent surge, compared to 7.02 percent in September.  

The insurance and financial services sector also witnessed a rise in prices, with a 5.83 percent rise in October, compared to 5.20 percent in the previous month.  

Prices in education, health, and food and beverages also advanced in October. Education rose by 2.94 percent, health by 1.87 percent, and food and beverages by 1.85 percent.   

In comparison, September’s increases were 2.94 percent for education, 1.88 percent for health, and 1.81 percent for food and beverages.   

The personal care, social protection, and miscellaneous goods and services sector recorded a 1.67 percent jump in prices, while clothing and footwear was up 1.15 percent.  Both of these were lower rises than in September. 

In 2023, Dubai announced a plan aiming to boost foreign trade and investment in the UAE’s financial hub and “double the size” of its economy by 2033.