Adnan Khashoggi
Adnan Khashoggi | |
|---|---|
| Born | 25 July 1935 Mecca, Saudi Arabia |
| Died | 6 June 2017 (aged 81) London, England |
| Occupation(s) | Entrepreneur, arms dealer |
| Known for | Arms brokerage, Triad International Holding Company, extravagant lifestyle |
Adnan Khashoggi (; 25 July 1935 – 6 June 2017) was a prominent Saudi entrepreneur and arms dealer recognized for his significant geopolitical sway and extravagant way of living, which earned him the moniker "The Great Gatsby of the Middle East." At the height of his career during the early 1980s, Khashoggi's net worth was approximated at $4 billion, largely amassed through his pivotal role as a liaison between Western defense manufacturers and the Saudi government.
He established Triad International Holding Company, a conglomerate with varied international holdings including luxury hotels, oil processing plants, and real estate ventures. Khashoggi gained notoriety for organizing opulent events that attracted celebrities and political figures alike, positioning him as a well-known media personality who left an imprint on popular culture, inspiring works such as songs by Queen and appearances on programs like Lifestyles of the Rich and Famous.
Early life and education
Born in Mecca, Khashoggi was the son of Muhammad Khashoggi, a Turkish-origin physician who served as the personal doctor to King Abdul Aziz Al Saud, and Samiha Ahmed, a Saudi woman with Syrian heritage. His sister, writer Samira Khashoggi, married businessman Mohamed Al-Fayed and was the mother of Dodi Fayed. Another sibling, Soheir Khashoggi, is an acclaimed Arab novelist. He had two brothers named Essam and Adil Khashoggi, whose names inspired the title of his Triad Corporation. Additionally, he was the paternal uncle of journalist Jamal Khashoggi.
Khashoggi attended Victoria College in Egypt before enrolling at California State University, Chico, Ohio State University, and Stanford University. However, he left his academic pursuits early to focus on building his business empire.
Personal life
In 1961, Khashoggi wed Sandra Daly, an Englishwoman who embraced Islam and adopted the name Soraya Khashoggi. Together they had one daughter (Nabila) and four sons before their divorce in 1974.
His second marriage was to Italian Laura Biancolini in 1978; she also converted to Islam and took the name Lamia Khashoggi. They had one son named Ali. At the time of his passing, he remained married to Lamia. His third official wife was Shahpari Azam Zanganeh (married from 1991 until 2014). Beyond these formal marriages, Khashoggi reportedly maintained a harem that included at least twelve "pleasure wives," among whom was Jill Dodd, a former model and fashion designer who later wrote a memoir detailing their relationship.
During the 1980s, the Khashoggi family owned the expansive Baraka estate located in Marbella, Spain, where they hosted extravagant gatherings attended by celebrities and political dignitaries such as former Canadian prime minister Pierre Trudeau. Celebrity journalist Robin Leach highlighted Khashoggi’s lavish lifestyle which encompassed numerous luxury properties including a New York Olympic Tower duplex valued at $25 million. At his peak, it is said he spent approximately $250,000 daily to sustain this opulence, reinforcing his reputation as the "Great Gatsby of the Middle East."
Another significant residence was his home within Kenya’s Ol Pejeta Conservancy (formerly Mount Kenya Safari Club), which has since been converted into a hotel managed by Serena Hotels.
Although he faced financial difficulties later in life—with estimates suggesting his net worth declined to roughly $8 million by 1990—Khashoggi continued to maintain an extravagant lifestyle.
He passed away on 6 June 2017 at age 81 while undergoing treatment for Parkinson's disease at St Thomas' Hospital in London.
Business career
Khashoggi's formative years, marked by interactions with prominent Saudi personalities and a solid educational background, set the stage for his entrepreneurial pursuits. While still a student, he showcased his aptitude for business by generating US$1,000 through brokering a towel import arrangement among his peers.
One of his initial significant enterprises involved leasing Kenworth trucks to a construction firm facing challenges with desert conditions. This venture yielded him US$250,000 and secured his position as Kenworth's representative in Saudi Arabia. Throughout the 1960s and 1970s, Khashoggi was instrumental in facilitating partnerships between Western corporations and the Saudi government, particularly in infrastructure and defense sectors. From 1970 to 1975, Lockheed disbursed $106 million to Khashoggi in commissions, which escalated from 2.5% to 15%, effectively positioning him as Lockheed’s global marketing intermediary.
He established businesses in Switzerland and Liechtenstein to handle commission payments and cultivated strategic alliances with notable individuals such as CIA operatives James H. Critchfield and Kim Roosevelt, along with businessman Bebe Rebozo, a close confidant of U.S. President Richard Nixon. His yacht, the Nabila, once the largest worldwide, appeared in the James Bond movie Never Say Never Again. Following financial setbacks, he sold the vessel, which later became part of a transaction involving Donald Trump and Prince Al-Waleed bin Talal.
Khashoggi expanded his political clout by channeling US$200 million into Nixon’s 1972 election campaign through an allied bank that bypassed U.S. regulations limiting corporate political donations. This approach was similarly employed to broaden his influence internationally.
He served as head of Triad International Holding Company, responsible for developing the Triad Center in Salt Lake City before its eventual bankruptcy. Primarily recognized as an arms broker, Khashoggi facilitated agreements between U.S. defense firms—including Lockheed Corporation, Raytheon, Grumman, and Northrop Corporation—and Saudi authorities during the 1960s and 1970s. One of his early contracts reportedly involved delivering weaponry for a secret operation in Yemen amid the Aden Emergency in 1963.
Triad International
Owned by Khashoggi and named after him and his two brothers—Adnan, Essam, and Adil—Triad International was a global private investment enterprise. Its holdings spanned numerous sectors through subsidiaries such as Triad Management, Triad Properties, Triad Energy, Triad Technology, and Triad Financial Resources.
Founded in the early 1960s, Triad grew its presence across five continents with assets including hotels, retail centers, banking institutions, oil refineries, a computer manufacturing company, a gold mining operation, construction firms, automotive franchises, and ownership of the professional basketball team Utah Jazz. The company’s headquarters were located in Geneva, Switzerland, with branches operating in the United States, Canada, and Saudi Arabia.
Among its significant assets were the Mount Kenya Safari Club (Ol Pejeta Conservancy), San Francisco Town Center East (valued at US$250 million), Long Beach Edgington Oil refinery (generating US$250 million annually), ATV computer systems based in Arizona, Colorado Land & Cattle Company, Security National Bank in California, Barrick Gold Mine situated in Toronto, Saudi Arabian dealerships for Kenworth/Chrysler/Fiat vehicles, National Gypsum in Saudi Arabia, and Sahuaro Petroleum located in Phoenix.
The company’s financial interests also extended to Lloyd's of London; Manera company; Las Brisas Resort in Acapulco; Houston Galleria; National Car Rental; Pyramid Oasis in Cairo; Travel Lodge Australia; Pacific Harbor Hotel in Fiji; Beirut Riyadh Bank; and Bank of Contra Costa.
Triad’s real estate portfolio included private homes scattered across Beirut, Jeddah, Riyadh, Geneva, Cairo, Salt Lake City, Cone Ranch (Florida), Rome, Paris, Cannes, London, as well as a penthouse atop New York's Olympic Tower.
Through Triad International, Khashoggi possessed several private aircraft and luxury yachts. His aviation collection comprised a McDonnell Douglas DC-8 and DC-9 jets, three Boeing 727s alongside various smaller jets and helicopters. The three super-yachts—Nabila, Mohammadia, and Khalidia—were named in honor of his children.
Geopolitical involvement
Khashoggi was instrumental in orchestrating and financing the covert 1984 Operation Moses, which facilitated the evacuation of 14,000 Ethiopian Jews from Sudan to Israel amid a famine triggered by the Ethiopian Civil War.
He was connected to the Iran–Contra affair as an intermediary in the arms-for-hostages deal, collaborating with Iranian arms dealer Manucher Ghorbanifar. Khashoggi allegedly obtained loans for weapons acquisitions from the Bank of Credit and Commerce International (BCCI), an institution supported by Saudi and American interests. His participation became contentious when he contributed millions to the American University in Washington DC, enabling the construction of a sports complex named after him. He held a position on the university's board of trustees from 1983 until his fraud indictment in 1989. Additionally, Khashoggi acted as a "principal foreign agent" for the U.S., playing a role in founding the international intelligence alliance known as the Safari Club.
During this timeframe, Khashoggi maintained financial ties with financier and convicted sex offender Jeffrey Epstein.
In 1988, Swiss authorities detained Khashoggi for three months on charges related to hiding assets. He stopped contesting extradition after U.S. prosecutors lowered accusations to obstruction of justice and mail fraud, dismissing racketeering and conspiracy counts. By 1990, a federal jury in Manhattan found him and Imelda Marcos, widow of ousted Philippine President Ferdinand Marcos, not guilty of racketeering and fraud.
Khashoggi also provided funding for Genesis Intermedia, Inc. (formerly NASDAQ: GENI), a publicly traded American internet firm. In 2006, he faced a securities fraud lawsuit from the U.S. Securities and Exchange Commission, which was dismissed in 2008 without any admission or denial of guilt.
In January 2003, journalist Seymour Hersh disclosed that former U.S. Assistant Secretary of Defense Richard Perle met with Khashoggi in Marseille to engage him as an intermediary between Perle’s private equity firm, Trireme Partners, and the Saudi government. At that time, Perle chaired the Defense Policy Board Advisory Committee, granting him access to classified information and significant sway over defense strategies. Khashoggi recalled Perle commenting on the financial implications of a potential Iraq invasion: "If there is no war... why is there a need for security? If there is a war, billions of dollars will have to be spent."
Media
Khashoggi’s vast yacht served as inspiration for Queen’s song "Khashoggi's Ship".
In 1991, he appeared on the British television program After Dark, debating Middle Eastern topics alongside former Prime Minister Edward Heath and Lord Weidenfeld.
He was also featured on Lifestyles of the Rich and Famous in 1985, showcasing his opulent way of life.
At the height of his prominence, Khashoggi was a well-known media personality frequently profiled by leading publications such as Time and The Washington Post.