Bloomberg Billionaires Index

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#222 Mohamed Al Jaber $7.19B

Random fact: Sponsors scholarships for graduate students from the Middle East.

Overview

Al Jaber founded MBI International Holding Group, a London-based hotel, food and real estate company. His JJW Hotels & Resorts owns and manages more than 50 properties in the U.K., France, Egypt, Austria, and Portugal. He also controls oil and gas services company, Continentoil and food processing group, Ajwa.

As of April 25, 2018:
Last change -$70.0k (0%)
YTD change -$37.0M (-0.5%)
Industry Retail
Biggest asset Jadawel International
Citizenship Saudi Arabia
Age 59
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Mohamed Al Jaber's net worth of $7.19B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Al Jaber's fortune is tied to hotel properties he owns in Europe, through his London-based holding company, MBI International Holdings. He owns and manages 56 mid-range and five-star hotels in France, Austria, Portugal and Egypt through JJW Hotels & Resorts and the Scotsman Group, which is incorporated under JJW. The hotels are valued based on their total net asset value as of December 2016, according to MBI's audited 2016 financial statements. He also owns two residential compounds in Saudi Arabia through Jadawel International. They're valued based on a discounted cash-flow analysis conducted by MBI using the properties' annual rental income and a 7.25 percent discount rate.

The valuation was updated on March 16, 2018 to reflect audited financial statements for MBI. Certain assets were previously valued on a non-consolidated basis and this change led to reduction in the net worth calculation from $8.1 billion. The valuation was updated again on April 4, 2018 to include certain asset that had been previously omitted due to a lack of detailed financial information. This led to an increase in the calculation to $7.2 billion.

Through MBI, he also owns Continentoil, a closely-held, London-based oil and gas services provider. The company is valued at $1.05 billion, according to MBI's financial statements.

The billionaire said he also owns office and residential properties in the U.K., France, Portugal, Egypt, the United States and Saudi Arabia. They're valued at their acquisition cost, less depreciation, according to MBI's financial statements. Any leverage attached to these assets -- which are debt free, according to Al Jaber -- is held by MBI. He declined to provide details on the location or size of the properties.

According to Al Jaber's auditor, Ernst & Young, MBI had $261 million in total debt, excluding payment advances, as of Dec. 31, 2016.

Biography

Birthdate: 1/17/1959
Family: Married, 3 children

Al Jaber was born in Jeddah, Saudi Arabia, in 1959. His first major business endeavor was Jadawel International, a construction and development group he founded in 1982. Seeing the need for high-quality housing for the growing number of western expatriates working in Saudi Arabia, he built two residential compound developments, one in Riyadh and one in Al Khobar.

In 1987, Al Jaber diversified into hotels, buying a 370-acre plot of land in the Algarve region of Portugal, intending to develop a golf resort. Two years later, he founded JJW Hotels and Resorts and put together a management team with the aim of acquiring more properties throughout Europe. He bought four hotel sites in France while also building the Portuguese property, Pinheiros Altos, into a golf resort and residential development.

He began buying operating hotels, starting with a chain of ten French budget hotels and the Amarante in Vienna in 1992. By 2000, JJW's portfolio included more than two dozen hotels in France, as well as properties in Turkey, Egypt, Austria, Portugal, and an equity stake in Prince Alwaleed's Kingdom Hotel Investments. In 2006, before the company listed on the Saudi stock exchange, Al Jaber resigned from the board after declining to sign a mandatory lock-up agreement and sold his stake back to Kingdom.

JJW's purchases soon skewed upscale. He bought Scotsman Group, a U.K. luxury boutique hotel chain, in 2006, and a year later, the Eton Collection, a similar chain. Eton's five hotels went into administration during the 2008 credit crisis and were sold to U.S.-based Westmont Hospitality in December 2010.

Sheikh Mohamed, as he is called by his staff, has a history of lawsuit entanglements over late or failed payments. In March 2009, JJW entered an agreement with private equity firm Starwood Capital to buy 12 French hotels, including the Hotel de Crillon in Paris. The deal fell apart and both sides sued for breach of contract after JJW refused to pay 100 million euros ($137 million) of an initial deposit Starwood claimed it was owed. The Paris Commercial Court sided with Starwood in April 2010 and demanded JJW make the payments owed. The Paris Court of Appeals dismissed JJW's payment obligation in February 2011.

JJW was sued by a contractor for failing to pay for construction work at the Berners Hotel in London. The suit was later settled. The hotel went into administration in the summer of 2010 and was later bought by Marriott. In October 2011, Standard Bank sued Al Jaber for $150 million in a London court, saying loans made to MBI companies weren't repaid. The billionaire countersued, accusing the lender of making unauthorized trades from his personal account. In court, he said he'd lost more than $1.6 billion due to a court-imposed freeze of his assets. The judge lifted the order after Al Jaber and the bank settled out of court. The settlement terms weren't disclosed.

Milestones
  • 1959 Mohamed bin Issa Al Jaber is born in Jeddah, Saudi Arabia.
  • 1982 Founds property group and developer, Jadawel, in Riyadh.
  • 1987 Expands into hotels, buys development site in Portugal.
  • 1989 Starts JJW Hotels & Resorts, aims to buy more European hotels.
  • 1992 Acquires chain of ten French hotels and the Amarante Vienna.
  • 2002 Founds MBI Al Jaber Foundation.
  • 2003 Al Qaeda bombing attack targets a Jadawel compound in Riyadh.
  • 2006 Purchases U.K. hotel collection, Scotsman Group for $112 million.
  • 2011 Standard Bank sues Al Jaber for $150 million over unpaid loans.
  • 2011 Settles lawsuit with Standard Bank on undisclosed terms.