Iranian Student With $750 Turns Billionaire — Made by Islamic Art

April 1, 2010 by · 1 Comment 

By William Green, Bloomberg

stoneHead_plate March 30 (Bloomberg) — Nasser David Khalili stands in an exhibition hall in St. Petersburg’s Winter Palace, gazing at an 18th-century painted enamel of flowers that’s one of 25,000 works of art he owns. “I’d have paid anything for it,” he says, appraising this miniature by Frenchman Philippe Parpette. “There’s no way I’d have let anybody else buy it.”

Khalili, 64, an Iranian-born billionaire who lives in London, has come to Russia to unveil his fifth art collection: On this overcast December afternoon, 320 of his 1,200 enamel treasures will go on display at the State Hermitage Museum, home to the collection of Catherine the Great, Bloomberg Markets magazine reports in its May issue.

Having flown in on a chartered plane, Khalili is relishing a private preview, peering through tinted eyeglasses at such possessions as a gilded clock with matching candelabras that once adorned the home of U.S. railroad tycoon William Vanderbilt. Khalili, who says he has a photographic memory, recalls paying $16,500 for these three pieces 34 years ago. He estimates that they’d now cost $600,000.

In all, Khalili says the enamels he has lent the museum are insured for more than 100 million pounds ($150 million). Even so, they are a trifle compared with the obsession that’s consumed him for four decades: his 20,000 pieces of Islamic art. “His collection is certainly the best in private hands,” says Edward Gibbs, Sotheby’s London-based head of Middle Eastern art. “He is the man who has everything. He’s come to define the market.”

Khalili is revealing his latest collection just as the $43 billion global art market is showing signs of reviving — with an Alberto Giacometti sculpture selling for a record 65 million pounds in February to a buyer later identified by dealers as London-based billionaire Lily Safra. In the Islamic art world, prices for the best pieces have been buoyed by a new generation of Middle Eastern buyers, including museums in Qatar and Abu Dhabi.

“There’s fierce competition for anything unique, rare, beautiful or important,” Gibbs says, noting that an Islamic textile Sotheby’s estimated would fetch $250,000 to $350,000 in a March 2009 auction went to Qatar’s Museum of Islamic Art for $3.4 million.

The limited supply in this niche within the art market has made Khalili’s collection all the more precious, says Claire Penhallurick, an Islamic art consultant for Bonhams auction house. She says it’s impossible to guess what his entire collection is worth.

“How could you value something that’s unique and irreplaceable?” Penhallurick says. “If you had all the money in the world, you couldn’t assemble his collection now.”

When an exhibition of 471 of Khalili’s Islamic pieces opened at the Institut du Monde Arabe in Paris in October, they alone were insured for almost 600 million pounds.

The story behind how Khalili built his fortune has long been shrouded in secrets. As a property developer, he shunned publicity and didn’t slap his name on buildings or the company that is his main investment vehicle. He has also operated under the radar when buying art.

“During the collecting, I don’t say anything,” Khalili says. “When it’s done, then I speak.”

His elusiveness has fueled much speculation, often revolving around how he financed his collecting. Khalili, who left Iran in 1967 with $750, says he’s since spent $650 million on art. London’s Sunday Times, which estimated his fortune at 5.8 billion pounds in 2007, gave up guessing his worth the following year and removed him from its annual rich list.

Khalili, whose works are held in a family trust, says he used subterfuge to amass his Islamic collection, pretending for several years to be an art dealer so he could acquire pieces at wholesale prices. While his stealth has often obscured the scale of his buying, the magazine ARTnews says Khalili is one of Britain’s top collectors, along with Safra and private museum owner Charles Saatchi.

The Iranian says he’s aware of whispers within the art trade that he grew rich buying Islamic works for Brunei’s Sultan Hassanal Bolkiah. Sitting in his office in London’s Mayfair neighborhood, where the treasures on display include an 8th- century bronze camel and a 7,000-year-old stone sculpture, Khalili beats his chest with his hand when asked about the rumors.

“I didn’t buy anything for anybody. Nobody, right?” he says. “I bought for myself. This is all bulls—, all right?”

The questions surrounding Khalili stem in part from his emergence in the 1980s as a trailblazer in Islamic collecting.

“There was this sudden transformation,” says William Robinson, director of Islamic art at Christie’s International. “In the late 1980s he was the No. 1 buyer.” Robinson and others thought he was buying as the exclusive agent for a powerful client. “It was assumed that the Sultan of Brunei was behind it,” Robinson says. “I really don’t know.”

Brunei’s Ministry of Foreign Affairs didn’t respond to requests for comment.

Britain’s press also fueled speculation about the source of Khalili’s riches. “He spends on a scale no art collector has done before,” London’s Independent wrote in 1994. “Yet no one knows where his money comes from. … (Khalili) vehemently denies the suggestion that he has been secretly investing the sultan’s money rather than his own.”

Khalili says he met the Sultan of Brunei around 1984, after the U.K.’s Foreign Office asked him to advise the monarch on creating an Islamic gallery at the Brunei Museum.

“He had about 10,000 pieces,” Khalili says. “I chose about 1,000 pieces and said, ‘Throw the rest away. They’re junk.’”

As a favor, he says, he selected several items for the Sultan to buy at auction and the Khalili family trust sold him a dozen pieces from its Islamic collection, including Qurans, metalwork and textiles, for about 4 million pounds.

Khalili dismisses rumors that he sold art to the Sultan at inflated prices, pointing out that he later convinced him to donate 10 million pounds to the University of London for an Islamic gallery.

“If you rip somebody off, would they turn around and give you 10 million pounds to build a gallery?” he asks.

It’s now obvious he was buying for himself, Khalili says, since his Islamic collection is cataloged in 19 books written by an army of scholars he has hired to document its provenance and authenticity.

Khalili, who has also built collections of Japanese Meiji art, Spanish metalwork and Swedish textiles since 1975, says the value of his artworks is irrelevant, because he will never sell them.

“All five collections are priceless: 2 billion pounds, 3 billion pounds, 4 billion pounds, it doesn’t make any difference,” he says. “These collections cannot be replaced.”

His Islamic treasures include a 14th-century Iranian world history by Rashid al-Din Fadlallah, which he says cost him 12 million pounds in 1990. “It’s one of the greatest illustrated manuscripts in the world,” says Tim Stanley, senior curator for the Middle East at London’s Victoria & Albert Museum.

Khalili, who holds both U.S. and U.K. passports, offered to lend his Islamic collection to the British nation in 1992 if the government provided a museum to house it. Khalili says he stipulated that the loan would become a gift after 15 years if the collection was exhibited to his satisfaction; if not, he could take it back.

Outsider in London

“The offer to the British government was a really terrible one,” says Anna Somers Cocks, editor-in-chief of the London- based monthly Art Newspaper, because of this risk. After months with no response, Khalili abandoned the plan. Still lacking a permanent home, most of his artworks are stored in warehouses in London and Geneva.

Michael Franses, a U.K.-based retired dealer in rare carpets who’s known Khalili since the 1970s, says this rebuff reflected Khalili’s outsider status in his adopted country.

“The British establishment was very closed,” Franses says. “I don’t think people trusted him because he was Iranian and strange and different.”

That setback is a distant memory as Khalili strides through the Hermitage, musing on how far he’s come since leaving Iran. His artworks have been showcased by 40 museums, including the Victoria & Albert and New York’s Metropolitan Museum of Art.

Khalili also prides himself on the honors he has won for his philanthropy. An observant Jew who says he avoids discussions of politics, Khalili co-founded the Maimonides Foundation in 1995 to foster dialogue between Jews and Muslims through sports, cultural events and education. He also endowed a research center for Middle Eastern culture at the University of Oxford.

In recognition of Khalili’s interfaith work, Pope Benedict XVI anointed him last year as a Knight Commander of the Pontifical Equestrian Order of St. Sylvester.
“I’m self-made. I’ve done it all on my own,” says Khalili, whose 14-page resume is headlined: “Scholar, Benefactor and Collector.”

Khalili sees no contradiction in being Jewish and owning an Islamic collection.

“I fell in love with it because it was the most beautiful and diverse art,” he says.

In 2005, at the launch party for Khalili’s book The Timeline History of Islamic Art and Architecture, Iran’s then- ambassador to London, Seyed Mohammad Hossein Adeli, hailed him as “an ambassador for the culture of Islam.”

First Treasure

Khalili’s journey to the top of the art world began in Iran on Dec. 18, 1945. The fourth of five children, he grew up in Tehran. His mother counseled divorced women. His father — like his father before him — visited homes to acquire artworks he could sell for a few dollars profit.

As a child, Khalili tagged along when his father traded art, once joining him at the home of a former education minister with a collection of pen boxes. The 12-year-old yeshiva student was enraptured by a lacquer pen box painted with 800 men and horses, each one different. Khalili recalls that when he rhapsodized about the box, the owner’s eyes filled with tears.

“He turned round to my dad and said, ‘I’m not selling this to you. I’m giving this to your son,’” Khalili says. He still has the pen box in his Islamic collection. “So the first piece I didn’t buy; I was given,” he says.

Art Mentor

After high school, Khalili did national service, training as an army medic. At 22, he left Iran for New York, where he worked at a Howard Johnson’s restaurant while studying at Queens College, part of New York’s public education system. One evening, as Khalili sipped cream to soothe an ulcer, the restaurant manager scolded him for taking it without permission. Khalili threw his waiter’s jacket at his boss and decided he’d trade art to pay his school fees.

At an auction of Russian enamels months later, Khalili noticed the main bidder was Alan Hartman, whose family ran a Manhattan antiques store. Khalili borrowed several enamels from Hartman on consignment. He says he sold them that evening for a $26,000 profit to Iranian collectors he knew on Long Island, where many wealthy Iranians were settling. (Khalili’s four siblings have since moved there.)

Hartman, now 80, says he wanted to help because Khalili was a Jewish immigrant struggling to build a new life. “We felt sorry for him,” he says.

“Alan and I did a hell of a lot after that,” Khalili says. “In two years, I was a millionaire.”

Friends say it was typical of Khalili that he’d launched himself by charming a stranger into lending him art.

“He has a way of winning people over,” says Sotheby’s Gibbs.

Tactile Billionaire

In person, Khalili exudes warmth: Meeting someone for the first time, he’s liable to introduce himself with a hug. He stands close to people, resting his hand on their arm, shoulder or back.

Before graduating from Queens in 1974 with a bachelor’s degree in computer sciences, Khalili was already amassing his own collection.

“I used to buy a group of objects — let’s say, 10 objects for $100,000 — keep 3 or 4 of the best aside and sell the rest for $250,000,” he says. “I used my knowledge to create money to finance my dream.”

In 1978, Khalili married Marion Easton, an Englishwoman he’d met while buying jewelry from her in a London antique store, and they settled in the U.K. capital. They have three sons: Daniel, 28, a jewelry designer, and twins Benjamin and Raphael, 25, who invest family money in startups such as PlayPit Games Ltd., an online entertainment company.

Decoy Shop

In addition to dealing art, Khalili says he began in the late 1970s to buy commercial properties in the U.K., France, Portugal and Spain.

“As he made money with property, he put it into art,” says Franses, the retired carpet dealer. “He was only ever interested in the art.”

Khalili approached him whenever he had cash to spare, buying such rarities as two 16th-century rugs that Franses says would now cost 2 million pounds each.

Khalili deployed misdirection to his advantage when he opened an Islamic art store in London in 1978. For three years, Khalili says he used the shop as a ruse to obtain dealers’ prices.

“I never sold anything there; I used that place as a decoy and bought unbelievable stuff,” he says.

“His timing was impeccable,” says Penhallurick. Islamic art was such a backwater that dedicated Islamic auctions didn’t begin until the 1970s. Khalili — whose main rivals at the time included the Kuwaiti royal family and the David Collection, owned by a Danish foundation — says many pieces he acquired then would now cost 10 to 50 times more.

Beautiful and Overlooked

“Anything that is beautiful and was overlooked, I bought,” says Khalili, who received a Ph.D. in Islamic lacquer at the University of London in 1988.

By the mid-1980s, Khalili says, his purchases were partly funded by venture capital investments that he declines to name. He says he made 30 times his money off shares he had bought in the late 1970s in a company developing technology to treat tumors. In 1987, he says he pocketed $15 million from the sale of a private company that made indigestion pills.

Khalili says he stopped trading art around 1980 and bankrolled his collecting primarily with profits from property. In a typical deal, he says, he paid 32.5 million pounds in 1992 for Cameron Toll, an Edinburgh shopping mall, selling it two years later for 55 million pounds as the market revived. Public records show Khalili has owned various private property companies.

Property Development

His main vehicle, Favermead Ltd., was incorporated in the U.K. in 1992 and sold 97 million pounds of property in 1995 alone, according to the company’s financial statements.

“Business is the least of my pride,” Khalili says. “Compared to collecting, it’s a piece of cake.”

Still, he currently owns a 60,000-square-foot (5,574- square-meter) business park in Exeter, England; a 32,000-square- foot building in Mayfair; and a site in central London where he plans to build a 320,000-square-foot, 13-story office tower when the real estate market recovers.

“If he starts building in the next 12 months, it’ll be very good timing as there’s very little available in the market,” says Gerald Ronson, CEO of London-based developer Heron International, which also bid for the central London site.

Mayfair Mansion

One personal property venture proved more problematic.

In 1993, Khalili began combining two buildings in Kensington that once housed the Russian and Egyptian embassies into a 55,000-square-foot home. Khalili says he spent 90 million pounds on the house, including 45 million pounds on the refurbishment. He employed 400 craftsmen for 4 years, installing 3,200 square meters of marble, a Turkish bath and underground parking for 20 cars. Marion Khalili says she refused to move in, deeming the house too palatial.

In 2001, Khalili unloaded the property for 50 million pounds to Formula One tycoon Bernie Ecclestone, who sold it to steel magnate Lakshmi Mittal for 57 million pounds in 2004, according to public records. Khalili now lives instead in a seven-story Edwardian mansion in Mayfair.

These days, Khalili says, his buying of Islamic art has slowed. With competition intensifying, he’s turned his attention elsewhere. One afternoon in late February, he reveals that he’s already begun his sixth collection. This time, Khalili says, he’s acquired an existing trove of nearly 200 pieces, to which he’ll add more treasures.

And the collection’s theme?

“I’m not telling you,” Khalili says with a smile. With that, he draws a veil on the next chapter in the improbable story of the Iranian yeshiva student who became the world’s leading private collector of Islamic art.

–Editors: David Ellis, Jonathan Neumann

Dubai Officials’ Confidence-Building Britain, US Trip

December 17, 2009 by · Leave a Comment 

By Amran Abocar and Steve Slater

2009-12-16T115052Z_26914839_GM1E5CG1J5P01_RTRMADP_3_DUBAI

An investor looks at stock information at the Dubai Financial Market December 16, 2009.   REUTERS/Mosab Omar

DUBAI/LONDON (Reuters) – Two top Dubai officials are visiting Britain and the United States over the coming days to rebuild investor confidence after neighboring Abu Dhabi helped bail out the emirate’s flagship company.

A source close to the government said the officials were already in London and would be in New York on Thursday and Washington on Friday to meet financial and political leaders.

“This is the next step in Dubai’s commitment to greater transparency,” said the source.

“They will spend the next few days meeting financial, economic and political leaders in London, New York and Washington, D.C. to discuss the actions taken this week to stabilize global markets.”

The emirate, famous for its man-made islands in the shape of palms and for other infrastructure projects, rocked global markets on November 25 with a request for a standstill agreement on $26 billion of debt linked to Dubai World and its two main property units, Nakheel and Limitless World.

The roadshow is being led by Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai’s Supreme Fiscal Committee and the uncle of Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum. Until recently he was best known as leader of the Emirates airline, but his public profile has risen since the debt crisis erupted.

Also on the trip is Mohammed al-Shaibani, deputy chairman of the same committee. He heads Sheikh Mohammed’s court and is chief executive of the Investment Corporation Dubai, which oversees the government’s investment portfolio.

‘Comprehensive Solution’

Earlier this week, Abu Dhabi, which produces 90 percent of the United Arab Emirates’ oil exports, provided $10 billion of financial aid to its fellow UAE member to meet the debt obligations of Dubai World until the end of April and to stave off a bond default by Nakheel.

Some $4.1 billion of the rescue funding helped Nakheel repay an Islamic bond, or sukuk, on Tuesday, a day after its due date.

The Abu Dhabi lifeline came in the form of bonds, at similar terms to a $10 billion bond issue to the UAE central bank in February, which carried a coupon of 4 percent per annum for the five-year, fixed-term issue.

Dubai also announced this week it would implement immediately an insolvency law modeled on U.S. and British practices in the event Dubai World needs to seek protection from its creditors. Meanwhile, Dubai’s ruler ordered the creation of a tribunal, headed by three international judges, to oversee any disputes between Dubai World and its creditors.

“They want to explain what happened this week,” said another source close to the government. “It’s very much the transparency message and to discuss the fact they presented a comprehensive solution.”

With the bond repayment out of the way, Dubai World must now agree a standstill with creditors, allowing it time to undergo a massive restructuring. It is slated to meet representatives from some 90 banks in Dubai on Monday.

(Editing by Andrew Callus and Kenneth Barry)

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Visitors Throng to Southeast Michigan Mosques

October 22, 2009 by · Leave a Comment 

By Adil James, MMNS

4 Warren–October 17–Seven local mosques opened their doors to welcome non-Muslim community members and TMO was present at one of the mosques, IONA on Ryan in Warren.

The mosque was incredibly beautiful, looking like a museum.  There were hand written copies of Qur`an, calligraphy, Islam-related videos playing, many items with Qur`an  engraved in them.

Perhaps 1000 square feet were cleared and in that space were tastefully separated displays, with enough space to walk between them and enough displays to take a visitor perhaps 45 minutes to take in everything  if they read everything.

There were several floor-stands chock full of calligraphy and explanations of Islam for the visitors, as well of course as tea and other refreshments.

“Many of the people asked us what Islam says about Jesus,” explained Waheed Rashid, one of the IONA volunteers/officials at the event.  They were very surprised, he said, to learn there is a chapter of Qur`an named after Sayyida Maryam.

The visitors included one sociology teacher and two local pastors.

“If just one person had come, it would have been worth it,” said Amin Varis, IONA’s outreach director.

An interesting idea was IONA’s giving of Sunnah-related foods on its table, with explanations of each of the ahadith about the items.  There was honey, black seed, and dates, as well of course as Middle Eastern refreshments like baklava, other sweets, and tea.

1 “Eat olive oil and anoint yourself with it since it is from a blessed tree.” 

“Honey is a remedy for every physical illness and Qur`an is a remedy for every spiritual illness.  Therefore I recommend to you both as remedies–Qur`an and honey.”

“Feed your pregnant wife with dates, she will surely give birth to a baby who is patient, well-behaved, and intelligent.”

“Use this black seed regularly, because it is a shifa for every disease except death.”

About 35 local people visited IONA during the course of the day, leaving behind their signatures in the welcome book. 

Amin Varis explained that the mosque had arranged for recent converts to welcome each of the visitors and guide them around, explaining the displays.  “People more like Americans, converts…  understand” the visitors better.

“We were really surprised,” he said, “some people were here for an hour–they showed lots of sincerity.”

Other mosques were also very successful in the outreach effort, with Canton’s MCWS mosque receiving over 100 visitors.

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Cricket Tour / Contest for DeLay’s Seat / Houston Local Cricket

April 27, 2006 by · Leave a Comment 

Never Forget the South Asian Quake, Says Pakistan Cricket Team

Islamic Relief Volunteers from the US, UK and Pakistan were already operating on the Azad Kashmir Line of Control when the huge earthquake struck the South Asian Region at 8:50 am Pakistan time, on October 8, 2005.
Many volunteers lost loved ones in the catastrophe, which was twenty times more damaging than Hurricane Katrina which had hit New Orleans just before, on August 25, 2005.
Former captains of the Pakistan Cricket Team, Rashid Latif and Moin Khan and record-holder, first-class c cricketer and coach Haris Ahmed Khan, joined hands with Islamic Relief and went deep into the Neelum Valley to work with their own bare hands to assist those in the region who have lost almost everything.
After what they saw, they determined it would take years to build the lives of the devastated people. Having witnessed many heart-wrenching and dreadful stories of poor people of the region, these three celebrities of Pakistan Cricket came for a long and tiring fundraising effort in North America, which took them to California, Illinois, Florida, Texas, New York, New Jersey, Michigan and Ontario Canada.
During their stay in Texas, they came to Dallas and Houston. In Dallas, they raised more than $200,000, while in an unscheduled last-minute Houston event they were able to raise more than $15,000.
Rashid, Moin and Haris all said that these people may have lost everything and may even have lost their natural emotions or grief, but all of them have the rest of the world to assist them. Many people promised to help—most of those promises were fulfilled. For years to come, the need is so immense that even if we have given to them, we still need to go back to our wallets and pockets and keep giving for another five to eight years.
The cricketers praised the efforts of Islamic Relief and the disciplined manner in which they have taken up this huge task, with just 6% overhead.
For more information on this fundraising humanitarian trip, and for information on ongoing humanitarian projects, call Anwar Khan of Islamic Relief at 1-818-216-9723.

Mayor of Sugarland Wants to take Tom DeLay’s Seat

The popular mayor, David G. Wallace, of Sugarland Texas, wants to take the seat of Tom DeLay, whenever he will decide to vacate.
Toward this end, he is meeting several people in the communities in Texas and also planning to travel to New York and other places to raise funds.
Recently he met, at Lassani Restaurant, a bipartisan group representing Texas communities of Muslims, Arabs, and South Asians.
He said that, having done his job to the best of his abilities at the local level, he now has aspirations to provide service to the people of America by being in the congress. He said although he is not well abreast about all foreign affairs issues, he is interacting with several communities to learn from them how they think about these problems of the world.
He said he is the advocate for low-interest rates to enhance the economy, and will work to build a better lifestyle for all Americans and to build fruitful measures for small businesses.

New Houston Pakistan/India Cricket Win-Loss Record: Tied at 4 and 4!

It was 1998 when the first annual Pakistan v. India Houston Players Cricket Match was played. Ever since then, every April third, these two traditional teams play against each other in a most disciplined, high-class and friendly manner.
The game has been played without a hitch except one year when it was cancelled for rain. Of the remaining years, the win-loss record is as follows: Pakistan has won four times and India three times; this year India won, making the record 4 and 4.
The match was played at the beautiful Harris County Tom-Bass Park. Pakistan scored 232, while India crossed the score when they had two wickets and few balls left to play.
Elegant left handed batsman Sushil made 115*, the first century of these traditional matches. Sushil was declared the Most Valuable Player of the Match. Majid of Pakistan was affirmed as the best bowler for his three quick wickets, which made the game even poised and most exciting at one stage. Captain Rafay of Pakistan for his 45 was given the best batsman award.
Those interested in playing cricket or wanting to know more about this game in Houston, please visit the website of the Houston Cricket League: http://www.houstoncricket. com/