IslamicFinance.de

Thousands of people attended the first day of an auction of vehicles owned by indebted Saudi Arabian tycoon Maan al-Sanea. Officials say the sale will go towards repaying about 18 billion riyals (US$4.8 billion) owed to creditors. The businessman was detained by authorities last year for unpaid debt dating back to 2009 when his company, Saad Group, defaulted on payments. The first phase of the auction was launched this week, with around 900 vehicles including lorries, buses, diggers, forklift trucks and golf carts. Later stages of the process will include property, as well as machinery, ceramics and furniture. Prospective buyers were mainly businessmen from local construction companies and other contractors. Money raised from the first phase of the auction will go towards repaying creditors. Priority for the repayment will first go to repaying unpaid workers, vendors and other companies owed money will be given next priority, with banks at a later stage.

Saudi authorities are preparing to auction billions of dollars of real estate and cars belonging to billionaire Maan al-Sanea. This is the latest signal that Saudi Arabia is serious about holding its elites to account. In an anti-corruption crackdown last November, authorities detained several senior officials on charges of alleged graft. The al-Sanea case is separate from the main anti-graft campaign. The businessman was detained for unpaid debt dating back to 2009 when his company, Saad Group, defaulted on debts. Creditors have spent the past nine years pursuing Saad for debt that some estimate to be between 40 billion riyals ($10.67 billion) and 60 billion riyals. Al-Sanea's real estate in Khobar was valued at around 4.4 billion riyals. Authorities are preparing an auction to sell his vehicles, equipment, a large quantity of building materials and some property before the month of Ramadan.

Saudi billionaire Maan Al-Sanea is accused in the English courts of a $650m (£495m) fraud that has triggered a battle between hedge funds and the French bank BNP Paribas. He was arrested by Saudi authorities in October on charges of evading justice and owing large sums of money to creditors. Maan’s Saad Group collapsed in 2009, triggering a long battle to recover billions he had shipped offshore to the Cayman Islands. The High Court trial concerns the arrangement of a $650m sukuk, which was paid to Mr Maan personally to lease land he owned. Judgment in a separate claim brought by the hedge funds against him is due on Thursday. Subsequent arrests of prominent Saudi businessmen sparked debate over whether the moves represent consolidation of power or a genuine crackdown on corruption.