By George Salem
July 2, 2011</em
Question & Answer Some people check out online universities in the search for dialogues with one another to fully
understand these issues. We need to understand the underlying causes of the issues in order to move toward solutions.
Filed under Uncategorized
Filed under Uncategorized
by Mehrunisa Qayyum, Political Economy Analyst of MENA Region
As the European Union battles the falling Euro and grapples with the Greek financial crisis, neighboring Turkey is literally seeing greener pastures on its side. Turkey’s Prime Minister, Recep Tayyip Erdogan, has overseen a 9 percent growth in Turkey’s GDP since 2010. At the same time, Islamic banking institutions and investments have experienced popularity and expanded within Turkey and abroad. As such, on July 2nd, the 3rd Annual Turkish Symposium partnered with the Islamic Society of North America and held a seminar entitled “Turkey’s Zero Problem Foreign Policy under the Leadership of Recep Tayyip & Its Impact”. Specifically, the discussion reviewed how Islamic banking enterprises successfully have engaged Turkey’s 70 million—and growing—population and developed American and Middle Eastern ties as Turkey secures its political and regional place as a leader.
According to the UK Telegraph, Turkey demonstrated “China style growth” within a year. Similar to US presidential elections, economic health acts as a strong determinant of who is reelected, and who is ousted. Remember how the Democratic party won the presidential and numerous congressional races to take the majority in 2008? It was the economy’s poor health, silly. Perhaps, it is no surprise that the Islamic party Justice & Development, AKP, defended its third consecutive win.
The foreign policy oriented panel could not separate Turkey’s political and economic successes, since these have occurred hand in hand. Panelists included: Fatih Yildiz, Consul General of the Republic of Turkey in Chicago; Mahinur Ozdemir, first Muslim Member of Parliament of Belgium—and part of the Christian Democrat party; Kemal Bozkurt, Lawrence Library’s Reference Librarian; and Cemal Demir, Journalist, Haber7.com. (Mehmet Kemal Ozdemir moderated.)
The panel used WISE Capital Fund (WISEX) as an example of how Muslim Americans are putting faith in Turkey’s financial growth and strong prospects in political stability. Azzad Asset Management highlighted how WISE Capital Fund has banking partnerships with Turkiye Finans, for instance. (See www.azzad.net ) According to the MEMRI Economic blog,“Following the introduction of the Banking Act 2007, the country’s four participation (Islamic) banks – Albaraka Turk, Kuveyt Turk, Turkiye Finans, and Asya Finans Participation Banks – were brought under the same provisions of the above act, which meant that the regulatory regime was exactly the same as for the conventional banks.” Earlier this year, Turkey launched the ISE Participation Index KATLM on January 6, 2011. The index reflects an initiative to promote ethical funds and “Socially Responsible Investments”, SRI. (See “Islamic Finance in Turkey–Looking Ahead With Confidence”, 2007, by Peter Wouters.)
Turkey is one case study that invites more optimism if not just keen interest in their economic progress via banking. As noted in the Turkish Symposium, as the Arab Spring occupies its neighbors, more opportunities will emerge for Turkey to serve as a bastion of not only political stability, but as a hub for financial stability. Morever, the idea of “Socially Responsible Investing” prompts further discussion—especially considering how the trend mirrors certain Islamic Banking principles. This will be covered in next week’s post—so stay tuned and be ready to rebut the arguments for Islamic Banking!
This was first posted on Peace X Peace, an NGO focusing on 1) raising women’s voices, and 2) building cultures of peace. Visit their site to learn more about their interconnected work at: http://www.peacexpeace.org
From Tiananmen Square to Tahrir Square, the Goddess of Democracy Award officially catapults the grassroots efforts of a struggle into globally recognized emblem of history. Inspired from the Goddess of Liberty statue in Tiananmen Square, the US based National Endowment for Democracy (NED) recognizes activists by awarding its miniaturized version. This year, Zahraa Said and Jamel Battaieb both received the honor on behalf of its people. Zahraa Said raised not only women’s voices, but raised men’s voices too as millions of Egyptians protested peacefully from January 25th to February 11th.
On Wednesday, June 22nd, 2011 Egyptian activist, Zahraa Said, made history again: it was the first time President Obama received Arab Democracy activists as award recipients since the Arab Spring. Ms. Zahraa Said and Tunisian activist/professor Jamel Bettaieb visited the White House after receiving the NED’s prestigious award.
In 2010, Zahraa immediately took action after two police officers, in the Sidi Gaber district of Alexandria, brutally beat her brother, Khalid Said, to death because of Khalid’s photos exposing police corruption. The Facebook page, “We Are All Khalid Said”, signified Zahraa’s grassroots interconnectedness as she enlisted thousands to go beyond sympathizing for the young businessman’s death to empathizing for a cause. As a result, Zahra’s efforts contributed directly to the January 25 revolution in Egypt and, ultimately, led to toppling ex President Hosni Mubarak’s regime.
Founded in 1983, the National Endowment for Democracy (NED) operates as a private NGO and receives funding from the US Congress. NED established a tradition of recognizing freedom and democracy leaders across the globe by awarding the Goddess of Liberty statue. Aside from awarding this honor, NED also holds a roundtable to reflect on the lessons learned that had led up to the awardees’ success. NED’s Director of Middle East region, Laith Kubba moderated the roundtable, which canvassed Arab countries participating in the Arab Spring: Bahrain, Egypt, Libya, Syria, Tunisia, and Yemen.
Two other female leading activists joined to comprise a gender balanced dialogue at the NED panel held at the US Capitol’s Rayburn building: (1) Sahar F. Aziz, an Egyptian-American civil rights attorney, reflected on Egypt’s judicial reform; and (2) Atiaf Zaid Alwazir, an independent Yemeni researcher and blogger, epitomized how social networking technologies affect even lesser developed countries. Ms. Alwazir’s blog, http://womanfromyemen.blogspot.com, captures live accounts as well as provides analysis. Ms. Alwazir received her M.A. in International Affairs. This fall, Ms. Aziz will be teaching law at Texas Wesleyan University School of Law.
Husain Abdulla Aly Ramadan Abouzaakouk, and Dr. Radwan Ziadeh, provided perspectives on Bahrain, Libya, and Syria. Concluding the two part event, State Department Under Secretary for Political Affairs, William J. Burns, highlighted NED’s enthusiasm for continued success in supporting activists on the democracy front.
Next year, NED will select awardees for advocating for democracy and freedom. Based on the efforts of women to lead both physically on the public square, as well as virtually master the newer communication mediums, the Goddess of Democracy will probably be embraced by another woman—regardless of her regional influence because she will inspire globally.
Recognizing Previous Awardees
Previous National Endowment for Democracy Awardees for Goddess of Democracy include the following women—whom also raised women’s voices and/or built communities of peace—from the Middle East & North Africa as well as the Muslim world:
• Sakena Yacoobi, Afghanistan-2005
-NED selected Ms. Yacoobi for founding the Afghan Institute for Learning, which propels computer education as a vocation for Afghani women.
-Specifically, Yakoubi’s institute has trained hundreds of Afghan women in bookkeeping, management and accounting.
• Nadjet Bouda, Algeria-2002
-From the age of 16, Nadjet Bouda joined the Rally for Youth Action while raising awareness about the number and plight of “disappeared” Algerians during its Civil War.
-According to the NED, Ms. Bouda’s efforts reflect “the importance of youth in the effort to spread democratic values throughout the Muslim world.”
• Mehrangiz Kar, Iran-2002
-Ms. Mehrangiz Kar continues her work as an outspoken Iranian attorney, writer, and activist who has constructively critiqued discrimination against women and non-Muslims in the Islamic Republic of Iran.
-She is married to prominent journalist, Siamak Pourzand, who is a political prisoner in Tehran.
• Mariam Hussein Mohamed, Somalia-2002
-Dr. Mariam Hussein Mohamed founded Somalia’s leading human rights group, the Dr. Ismail Jumale Human Rights Organization (DIJHRO), which objectively documents human rights violations committed by all groups in Somalia.
-NED selected Dr. Mohamed because she expanded her human rights crusade that envelops twenty-four Somali civil society organizations under the umbrella: Peace and Human Rights Network (PHRN).
• Muborak Tashpulatova, Uzbekistan-2002
-Ms. Tashpulatova received NED’s award for her role as the Director of the Tashkent Public Education Center (TPEC).
-The Center collaborated with Uzbekistan’s leading educators to (1) develop handbooks for teaching human rights, and (2) conduct “town hall” style civic forums for parents, youth, and government.
Malek Jandali Performance
Two weeks ago, the American Arab-Anti Discrimination Committee’s (ADC) decision to recall a performance invitation to Syrian pianist, Malek Jandali, at their 31st annual convention rippled through Facebook and Twitter channels as the controversy made national news. Jandali claimed that the ADC had invited him, objected to one of his songs (Watani Ana), and the then disinvited him when he insisted on performing the song. Ironically, the ADC held a panel, “Social Networking in a Changing Media”, used the Jandali controversy as a case study. As Will Youmans, Joyce C. York and Dean Obeidallah weighed in on the political, activist and public relations aspects, I considered the controversy from an artist’s platform.
While I knew that the ADC maintained relationships with several Arab authoritarian regimes, I seriously questioned the validity of these unprecedented reports. But, if they were true, how could I, a politically active musician myself, volunteer to sing the National Anthem, or any other song, on the same stage as those accused of artistic censorship.
I sought out answers. I reviewed the official ADC statement; it was vague and unrepentant. I listened to Jandali’s song:
“I am my homeland, and my homeland is me. The fire in my heart burns with love for you! Oh my homeland, when will I see you free? When the sun of virtue rises in your sky, when the pen writes of loyalty and love. When the land is watered with the blood of martyrs and the brave, and all people shout: Freedom to mankind! Freedom to mankind! Oh my homeland, cradle of humanity, we pray to the heavenly God, to lift calamities from my country, my people andall mankind!”
Awaiting Malek’s friendship on Facebook, I called people I knew in ADC. The best I got from a trusted source was that Malek was blowing the incident out of proportion. Then, I read the ADC press release again and caught something I didn’t notice the first time around:
“Mr. Jandali’s participation at the banquet was intended to be, in his professional capacity, as a musical performer. As for the expression of personal political views, ADC provides ample opportunity for discussion and debate throughout the convention.”
Clear as day, the ADC had made a unilateral decision that music and politics, or at least certain kinds of politics, would be very separate this year. According to this principle, I wondered if I should be singing the National Anthem with its ‘free people bursting bombs in the air.’ I felt awful: angry, disappointed, and worse, hopeless, like many who had been holding on to ADC, acknowledging its flaws and potential, as the center of Arab-American (or American Arab) national political action. How could I perform?
On Friday night I attended ADC’s evening events—including the New York Arabic Orchestra—and wondered if they struggled with the same questions. When I returned home, I thought about the people in Syria being shot dead by their own army. I listened to Wantani Ana and memorized my favorite three lines: I am my homeland, and my homeland is me. The fire in my heart burns with love for you! Oh my homeland, when will I see you free?
According to my moral compass, I had three options for singing the National Anthem.
1) I could not show:
2) I could make a statement before I sang; or
3) I could tack on my favorite three lines of Watani Ana at the end of the National Anthem.
I grappled with each option as new media and public relations developments unfolded during the convention. Will Youman’s article in Kabobfest inspired me resist boycotting because of the rich and proud part of ADC’s history and its relative institutional strength as a member-based organization. At lunch on Saturday, the ADC announced that it would play Wantani Ana at the evening Gala that night. Thus, singing part of the song might have resulted in unintended confusion. Most importantly, I decided not to make a statement because of the sweeping echoes of reform I heard throughout the convention’s halls on Saturday.
The ADC did not need another speaker at the podium; Arab-Americans do not need more organizations. We need to unite around one national organization and revitalize its grassroots nature (for those of us who accuse it of not being so). The ADC is that vehicle. I encourage anyone who experienced a similar mental and emotional exercise this convention, or is just ready for a serious national Arab-American political effort, to act upon a commitment to grassroots reform within the ADC. Political activism or artistic performance, they are both forms of grassroots expression.
Petition pledging membership: http://www.petitionbuzz.com/petitions/adc
Lacy Barrow is a Masters of Arts Candidate in the Center for Contemporary Arab Studies program at Georgetown University. She is also a singer/actor from the Washington, DC area and has performed at Madam’s Organ, HR 57, and Playbill as well as several musicals. She continues to study acting and musical theatre at the Studio Theatre Conservatory.
Source: http://thenextweb.com/me/2011/06/13/15-middle-east-startups-you-should-know-about/
The startup landscape in the Middle East may be quieter than much of the rest of the world, but don’t let that deceive you. Behind the scenes, there are countless talented developers working on services, applications and websites, some of which not only cater to a Middle Eastern audience, but to the entire world. From sites built on the Groupon model, to video sharing sites, to browser extensions, there is no stone that has been left unturned.
That’s not to say that Middle Eastern startups aren’t working in the face of some pretty intimidating obstacles. The Middle East is still on the hunt for its Silicon Valley, and internet usage in the region is significantly lower in comparison to the rest of the world. But that number is slowly increasing, along with the number of awesome startups in the region.
There are a few startups that have been around for several years now, and they have demonstrated just how successful they can be. Maktoob was one of the first Middle Eastern success stories, bought by Yahoo to the tune of USD 80 million. Others such as Yamli, Bayt and many others have gained a strong following in the region over time.
We’ve put together a list, in no particular order, of 15 startups coming out of the Middle East which you should definitely keep an eye on.
Istikana
Jordanian based Istikana, an Arabic version of Hulu, offers full length video content in Arabic that is one hundred percent legal. As we’ve mentioned before, Istikana is not the first site of its kind catering to an Arabic viewership, but it sets itself apart by providing older content. With on-demand videos in a variety of genres from Cartoons and Theatre, to Comedy and Religion, take a trip down memory lane with some great Arabic classics or discover some shows you’re too young to remember.
The content has primarily come from Jordan, but from Egypt, Kuwait, Syria, Lebanon and Saudi Arabia is on its way. With 3 to 4 new titles released on a weekly basis, you can constantly come back to Istikana and get your fix of Arabic videos. Istikana can also be accessed on the go from your iOS or Android devices.
Cashbury
Still in private beta, Cashbury is definitely one Middle Eastern startup you have to keep an eye on. Loyalty cards are still a popular marketing method to create brand loyalty in the Middle East. The guys behind Cashbury have come up with an environmentally friendly alternative, which will also come in handy for those of us who tend to accumulate several loyalty cards, and never end up using them, because we forget them at home.
Cashbury provides a smartphone app that ensure that your loyalty card comes with you no matter where you go. Business owners who want to get in on the action will have to pay a monthly fee of $9, which is likely less than what is paid to print loyalty cards themselves.
Offerna
With Groupon leading the way in the group buying phenomenon, it’s no surprise that several Middle Eastern specific group buying websites have made their way to forefront of the region’s market. A few have stood out, one of which is Cairo-based Offerna, whose name literally means “Our Offers” in Arabized English. Originally slated to launch in January 2011, Offerna’s doors officially opened in March, offering deals in its home town, there are plans to expand throughout the Middle East.
The site has already met with resounding success in Egypt, with offers selling out in a matter of hours, despite the fact that e-commerce is a niche concept in the country. The success is atributed to knowing the Egyptian consumer and givng them what they want. Available in both Arabic and English, the site offers a daily deal, with purchases including restaurant, spa and workshop discounts.
Gonabit
The first company in the Middle East to cash in on the group buying craze, Gonabit started out in Dubai and has now expanded into several other cities across the region. Gonabit has several firsts to its name, including being the first to break into certain markets, including Kuwait, Lebanon and Jordan, as well as being the first site of its kind to offer an Arabic interface. Like Offerna, Gonabit offers a daily deal for each of the cities it caters to.
Nahel
E-commerce has finally come into its own in the Middle East with several major online retailers that have Middle Eastern consumers turning to the Web instead of the mall for their shopping needs, such as Souq.com and Otlob Mall. Nahel entered the e-commerce scene in 2009, and looks to be a true contender for Souq, offering a variety of products to online shoppers from electronics to books to health and beauty products. The sheer volume of brand names, including Apple and Blackberry, is bound to make Nahel a huge success in the region. The UAE based site caters to a local audience, while also offering international shipping on all products via Aramex.
Marginize
Marginize is a browser extension that gives you a space to interact with other users who visit the same sites as you. Taking a page from location-based social networks, you can “check in” to a site, and leave a comment about it. Like FourSquare’s Mayor incentive program, the most active Marginize participant for each site becomes its ‘curator’.
In addition to Marginize user comments, you will also see what is being said about the site on Twitter. Based in the US, with a Lebanese developer at its helm, Marginize is one of the Middle Eastern startups which has gone beyond the region and has been met with resounding success throughout the world.
Genieo
Based in Israel, Genieo is a great news app that studies the stories that you read and generates a personalized website, or as they put it, newspaper, just for you. Genieo’s accuracy is impressive, and not only gives you an interesting way to keep up with your favourite sites, it also allows you to discover new sites you may have overlooked.
After downloading and using the browser extension for a while, you’ll find a wealth of articles and information waiting to be read, without having to lift a finger. Genieo is Windows and Mac compatible and works with Firefox, Internet Explorer, Chrome, Safari and Opera.
Edufina
Edufina is a Jordan-based bilingual hybrid site, providing a forum, news updates, and basic information on universities in the Middle East. The site aims to become the one-stop shop for all university-related information from the region, for students, parents and educators.
Prospective students can compare up to 3 different universities at a time when choosing the right college. The site, however, isn’t without its glitches. The search function doesn’t seem to be working, and the profiles of many of the listed universities are far from complete. If these kinks are worked out, the site could become an invaluable tool for students throughout the region.
Mimix
Still in its early stages of development, Mimix, the winner of the 2010 Global Startup Battle, is a Lebanese startup which, once launched, could aim to bridge a language barrier that we don’t often think of. A desktop application, Mimix translates both spoken and written words into international sign language. To begin with, Mimix is focusing on translating the English language into sign language, with the ambitious plan of expanding into translating other languages into various sign languages and dialects.
Nakhweh
Nakhweh is a community service website which makes it easy for volunteers to find an organisation to get involved with. NGOs and civil service societies can sign up for free, putting out a call for volunteers, telling people exactly what they’re looking for. So far, the Jordan based website only has listings from Jordanian organisations, but there is an amazing amount of potential in the site to really make a difference throughout the region. Nakhweh has also launched a blood drive in order to link blood donors with those in need.
Kngine
Kngine is an Egypt-based search engine which does things a little differently. Rather than yield search results based on rank, Kngine is a semantic search engine which tries to understand what you’re looking for by analyzing your search terms and how they relate to each other. Kngine has met with great success despite having some pretty stiff competition from other similar sites around the world, such as DuckDuckGo.
Shofha
One of Istikana’s main competitors in the market is Shofha, which was the first site of its kind to launch in the Middle East. The site, available both in English and Arabic, offers a variety of full length films, both old and new, with most if not all of them Egyptian in origin. However, unlike Istikana, you do have to pay to download or stream the films. You can buy, rent or stream movies on Shofha, but in order for the site to work, you have to have Microsoft Silverlight installed.
Mustalahatak
Mustalahatak is a recent addition to the Arabic web, and if it receives enough contributions, it has the potential to become the leading authority in Arabic tech terminology. Any Arabic speaker knows how English technology or Internet related terms are simply Arabized. Rather than twist an English word to suit an Arabic accent, Mustalahatak (which literally means ‘your expressions;), uses crowd sourcing to translate these words into Arabic.
While the interface certainly leaves something to be desired, this can be overlooked (for now) because of the site’s potential. To contribute your own translations, you can either sign up for a free account, or connect the site to your Facebook account.
MawalyMawaly is a site that any Arabic music buff should have bookmarked. The site is pretty much your one-stop shop for everything you need to know about your favourite Arab singers. With Mawaly, You can stream thousands of songs, watch music videos, and keep up with the latest industry gossip and news. Mawaly is 100% legal, but in order to take advantage of the site’s features, you will have to sign up for a free account.
Available only in Arabic, our hope is that they will eventually launch an English version of the site, so non-Arabic speakers can get a taste of the latest in what Arabic pop music has to offer.
Filed under Analysis, Interests, Technology
Ousted Tunisian President: Zine al-Abidine Ben Ali
Source: The Wall Street Journal
By DAVID GAUTHIER-VILLARS
TUNIS—Zine al-Abidine Ben Ali, Tunisia’s deposed president, goes on trial Monday on charges of abusing state funds and drug trafficking, providing the first public accounting of the practices of a ruler whose autocratic style first triggered the Arab Spring revolution that has swept the Middle East.
Agence France-Presse/Getty Images
Zine al-Abidine Ben Ali
Over his 23 years in power, Mr. Ben Ali—who is being tried in absentia—and his relatives amassed a fortune in banks, telecommunications firms, real-estate companies and other businesses, giving them control over as much as one-third of Tunisia’s $44 billion economy, according to anticorruption group Transparency International. The family displayed its wealth by throwing extravagant parties and jet-setting among several mansions in Tunisia and overseas.
An examination by The Wall Street Journal of Tunisian criminal court papers, as well as interviews with dozens of businessmen, Ben Ali family members and politicians, reveals fresh accusations that the Ben Ali clan—known as “The Family” here—squeezed out some business rivals by exerting political pressure to win lucrative state contracts.
Mr. Ben Ali “always acted in what he considered the Tunisian people’s best interest,” Jean-Yves Le Borgne, a French lawyer for the former president said in a statement.
The Ben Ali family “had the power and the law on their side,” says Moncef Mzabi, a Tunisian businessman who says he was forced in 2008 to sell his 3% stake in Tunisia’s largest bank to one of Mr. Ben Ali’s nephews. “A request amounted to an order,” he says.
Some Relatives of Tunisia’s President Saw Their Fortunes Rise. Marouane Mabrouk, left, controls national cellphone interests. Belhassen Trabelsi emerged as a deal-maker. Sakher El Materi bought and sold government businesses. The nephew, who is in exile in Canada, couldn’t be reached for comment. Stock-market filings show that, by late 2008, the nephew had amassed a more than 10% interest in the bank.
To stop an entrepreneur who wanted to open a new French car dealership in Tunisia, the Ben Ali government blocked some of his cars at customs for months and slapped him with 17 tax inspections, according to people familiar with the matter, including the entrepreneur, Bassem Loukil. Another businessman, Mohamed El Boussaïri Bouebdelli, says he wanted to build a new pharmacy university in Tunisia, but in a meeting at one of Mr. Ben Ali’s palaces, Mr. Ben Ali said that the proceeds should be shared “50-50” with him. Mr. Bouebdelli says he abandoned the project.
At the time he was deposed in January, Mr. Ben Ali was having a $250 million Airbus long-haul aircraft fitted out in France as an official state plane with lavish interiors, according to Tunisian government officials.
Bloody protests that broke out in Tunisia in December, after a 26-year-old street vendor immolated himself to defy Mr. Ben Ali’s regime, were the catalyst for the revolutionary wave across North Africa and the Middle East. Mr. Ben Ali’s term ended on Jan. 14 when he was hurried into a plane by his wife, according to a person present, and fled to Saudi Arabia.
Tunisia’s former president is the first deposed leader to face trial in the wake of the uprisings, but others are likely to follow. Former Egyptian President Hosni Mubarak is due to stand trial in August on charges of murder and corruption, which he denies.
Syrian Refugees in Turkish Camp Libya’s Rebels Run Out of Cash Fresh Call for Reform in Bahrain Rebels Try to Stave Off Gadhafi Forces The evidence that will be brought against Mr. Ben Ali during the trial includes stashes of cash, weapons and narcotics found at two of his mansions in Tunisia, according to officials at Tunisia’s justice ministry. In addition to abuse of state funds and drug trafficking, the former president will also face charges of illegal arms possession and illegal possession of precious artifacts, the officials said.
In his statement, Mr. Ben Ali’s lawyer in France, Mr. Le Borgne, didn’t address the specific allegations, and didn’t respond to emails seeking comment. In the statement, he said the trial is “a travesty of justice aimed only at creating a symbolic break with the past.”
Mr. Ben Ali’s trial will be presided over by judges from Tunis’s criminal courts and could take several months. Mr. Ben Ali, who remains in Saudi Arabia, won’t be present for the trial.
Tunisia’s Justice Ministry says it has sought Mr. Ben Ali’s extradition but hasn’t yet received a response. Officials in Saudi Arabia didn’t respond to requests for comment on extradition.
Officials from the Justice Ministry said Mr. Ben Ali will also face a future military trial for high treason, torture and murder, which can carry the death penalty in Tunisia, for having ordered police to shoot on protesters during the country’s recent uprisings. No date has been set for the military-court proceedings, and charges haven’t formally been brought.
View Full Image
Getty Images
Public fury and claims of corruption helped fire street protests and a revolution in Tunisia that ousted President Zine al-Abidine Ben Ali in January and later spread to neighboring states and the Middle East.
Mr. Ben Ali is also the target of a probe in France. Last week, Paris prosecutors said they had launched an investigation into alleged money laundering by the former president and would examine whether Mr. Ben Ali owned assets in France acquired with state funds.
Before the probe was launched, Mr. Ben Ali’s lawyer said his client “owns no real estate, no money in bank accounts in France or in any other foreign country.”
The former president’s trial is part of Tunisia’s halting attempt to create a modern democracy following a month of protests. Despite the fall of their leader, many Tunisians are still taking to the streets daily to push for better job opportunities and social benefits. One Tunisian interim prime minister has already resigned in the face of popular protest.
Administrators who are freezing assets of more than 100 Ben Ali family members say they are uncovering an economic network so vast that untangling it too quickly could disrupt Tunisia further. Instead of closing down businesses owned by Mr. Ben Ali’s relatives, for example, authorities are in most cases allowing them to operate under court-appointed managers.
“No crime will be left unpunished,” Tunisia’s new interim Prime Minister Béji Caïd Essebsi said in a recent television speech. “But Tunisians must be patient.”
When he took power in 1987 through a bloodless coup, Mr. Ben Ali, a graduate of the U.S. Army Intelligence School in Fort Holabird, Md., inherited a country where the state controlled much of the economy, from agriculture to tourism and textiles. Privatization of these formerly state-controlled businesses formed the base of Mr. Ben Ali’s and his relatives’ future wealth.
Among the examples: Marouane Mabrouk, one of Mr. Ben Ali’s son-in-laws, won a public auction in 2000 to acquire a controlling stake in Le Moteur, a state company that distributes Mercedes cars in Tunisia. He also won a government license to set up Tunisia’s first broadband-cellphone network.
Mr. Mabrouk’s assets have been frozen by Tunisia’s interim authorities, pending judicial investigation into their origin. A person familiar with Mr. Mabrouk’s situation said the businessman, who still lives in Tunisia, was confident he would prove that all his investments had been lawful and that there is “no such thing as a crime of being a relative.”
The Ben Ali family expanded when the Tunisian president, who had divorced from his first wife, in 1992 married his long-time mistress Leila Trabelsi, the daughter of a shopkeeper and an employee of a Turkish bath in Tunis’s medina. Ms. Trabelsi’s 10 siblings are also considered part of “The Family.”
Soon after the nuptials, Belhassen Trabelsi, one of the first lady’s brothers, emerged as a deal-maker. In particular, Mr. Trabelsi bought acres of previously state-owned land along the Mediterranean coast and later sold property to developers, according to relatives and Tunisian government officials. With the money, he invested in hotels and launched a charter airline called Karthago.
Three years ago, Mr. Trabelsi turned to the financial world. Banque de Tunisie, one of the country’s largest private-sector companies, had made a name for itself throughout the Maghreb for its rigorous lending policy and independence from the Tunisian government.
In March 2008, the bank’s then-chairman disclosed that he was terminally ill and that he was working on a long-term strategic plan aimed at keeping the bank independent after he had passed on. Before the plan materialized, however, the bank got a sudden change in management. Alia Abdallah, wife of Mr. Ben Ali’s then-foreign-affairs minister, came to the bank’s headquarters in central Tunis and informed staff that she was the new boss, according to several executives who were there.
The bank’s board had no say, and three members who voiced their opposition were sidelined. A new board was formed, and its members included Mr. Trabelsi and two of his business associates. “They took control of the bank and there was no possible resistance,” says Ilyès Jouini, a board member who says he was pushed out.
Taoufik Baccar, head of Tunisia’s central bank at the time, says the decision to name Ms. Abdallah was Mr. Ben Ali’s. Mr. Trabelsi, who has fled to Canada where he has filed an asylum claim, couldn’t be reached. Ms. Abdallah couldn’t be reached for comment. Messages left on her husband’s cellphone and questions passed on to relatives, were unanswered.
The Ben Ali family widened again in 2004, when Nesrine Ben Ali, one of the presidential couple’s daughters, married Sakher El Materi.
Mr. El Materi, the son of a general who kept a tiger in his villa, saw his business wealth increase considerably after the nuptials. He first made money by investing in and reselling companies that were being privatized. In 2006, he used some of the proceeds to invest in the Tunisian unit of Swiss food group Nestlé SA, buying a 41% stake in the dairy company from state-controlled Banque Nationale Agricole SA for 3.6 million Tunisian dinars ($2.6 million at current rates), according to legal filings.
Nestlé says it didn’t get a say in the deal. “This transaction was conducted without our knowledge and in violation of our rights of first refusal,” said Nestlé spokesman Robin Tickle. A BNA official declined to comment. Mr. El Materi, who has left Tunisia, couldn’t be reached for comment.
About 18 months later, Mr. El Materi sold the Nestlé-Tunisie stake to Nestlé for 35 million Tunisian dinars, according to legal filings. Nestlé declined to comment on the purchase.
Since then, Mr. El Materi has founded a bank, bought a 25% stake in Tunisia’s second-largest telecom operator, started construction of a port for cruise ships, gotten elected to parliament and acquired a media group. “One may envy his status as son-in-law of the president, but no-one can denigrate him by implying that he only owes his success to his stepfather,” reads a biography of Mr. El Materi posted on his website.
In the mid-2000s, several changes were introduced in Tunisia’s constitution to allow Mr. Ben Ali to seek re-election and to grant him lifetime judicial immunity. Meanwhile, the wealth and influence of the Ben Ali family made it difficult for others do business in the country, according to a number of people who knew them.
In 2005 for example, Mr. Loukil, the car importer, began negotiating with French auto company PSA Peugeot Citroën SA to distribute cars in Tunisia. Mr. Loukil says Mr. Trabelsi wanted to join forces with him in the Citroën partnership, but Mr. Loukil refused. Shortly thereafter, Mr. Loukil says he faced 17 inspections from Tunisia’s tax authorities and his cars were blocked at customs for having 10 seats.
“There is no such thing as a ten-seat car,” Mr. Loukil said in a recent interview in Tunis.
Around the same time, Mr. Bouebdelli, head of a private foundation that runs several schools in Tunisia, went to the Carthage Palace to see Mr. Ben Ali and discuss his plans for a new pharmacy university. “Ok,” Mr. Ben Ali said, knocking on the table with the back of his hand, according to Mr. Bouebdelli. “But it’s 50-50.” Mr. Bouebdelli says he shelved the project.
Some of Mr. Ben Ali’s relatives got into trouble abroad. In 2007, a French investigating magistrate issued an international arrest warrant for Imed Trabelsi, one of Ms. Trabelsi’s nephews, on charges that he ordered the theft of a 54-foot yacht that belonged to a Lazard Frères investment banker.
Tunisia has denied the extradition to France of Mr Trabelsi, who has denied the charges. The case was dropped after Tunisian authorities returned the yacht to the banker.
“The yacht was in perfect shape,” the banker, Bruno Roger, said in an interview. “Only the dinghy was missing.”
In addition to Mr. Ben Ali’s coming trial, Tunisia’s interim government is now sifting through corruption accusations filed by Tunisians against Mr. Ben Ali and his relatives. Every weekday in central Tunis, hundreds of people queue in front of a bank building that hosts Tunisia’s special anticorruption committee. Among the recent complaints: a group of teachers claimed they had to pay bribes to get a job, and a group of shop owners claimed they had to pay commissions to get their goods through customs.
—Margaret Coker contributed to this article.
Write to David Gauthier-Villars at David.Gauthier-Villars@wsj.com
