Ali Khamenei's Legacy: Corruption, Repression, and a $95 Billion Empire Built on Seized Properties

Iran's Supreme Leader Ali Khamenei left behind a legacy marred by corruption and repression after his death on February 28. Before his assassination, he ruled for 36 years and eight months, overseeing policies that included the suppression of women, the targeting of civilians, and funding for militant groups like Hamas and Hezbollah. But his most controversial actions involved building a $95 billion business empire through a covert system of property seizures.

The empire was managed by an organization called Setad, created by Ruhollah Khomeini in 1989. Its full name in Persian translates to 'Headquarters for Executing the Order of the Imam.' Setad operates as a state entity with the legal power to claim and sell properties it deems abandoned. A 2013 Reuters investigation found that Setad systematically used Iranian courts to seize homes and businesses, often without evidence that the properties were unclaimed. These actions allowed the organization to accumulate a vast real estate portfolio valued at $52 billion, alongside $43 billion in corporate stakes.

Under Khamenei's leadership, Setad expanded aggressively, acquiring shares in companies spanning oil, telecommunications, and even ostrich farming. The organization's secrecy made it difficult to track its full worth, but its influence reached every major sector of Iran's economy. While Khamenei himself did not directly profit from Setad's wealth, the organization gave him financial power that rivaled Iran's former monarchy, the Shah, who was overthrown in 1979. This financial clout allowed Khamenei to shape Iran's policies, including its controversial nuclear program, which drew international condemnation and military threats.

Khamenei's son, Mojtaba, also built a global wealth network worth billions. His assets include luxury properties in London and Dubai, as well as stakes in European hotels. Research by Bloomberg revealed that Mojtaba used a web of shell companies and intermediaries to hide his ownership of these assets. His network spans the UK, Switzerland, and the UAE, with properties like a mansion on London's 'Billionaires' Row' purchased for £33.7 million in 2014. In 2023, the UK sanctioned Mojtaba for allegedly financing Iran's Revolutionary Guards, a move that may force him to sell European holdings to avoid further penalties.

The wealth accumulated by the Khamenei family stands in stark contrast to the economic struggles of Iran's 93 million citizens. Over the past decade, Iran's economy has deteriorated due to sanctions, mismanagement, and the costs of subsidizing the regime's military and political ambitions. The seizure of properties by Setad has displaced thousands of Iranians, many of whom can no longer afford to reclaim their homes. Meanwhile, ordinary citizens face high inflation, currency devaluation, and shortages of basic goods like medicine and food.

Khamenei's regime also imposed strict social policies that further strained the economy. Harsh laws targeting women, LGBTQ+ individuals, and religious minorities reduced labor participation and drove talent and investment abroad. At the same time, Iran poured resources into funding militant allies like Hezbollah and the Houthi rebels, diverting funds from public services. This combination of economic mismanagement and repression has left millions of Iranians in poverty, while the Khamenei family and their associates continue to amass wealth through opaque legal channels and international networks.