When people in the West think of Iran, few truly understand how the country operates—politically or economically. A surprising fact for many is that Iran has a democratically elected president. The current president, Masoud Pezeshkian, was chosen through public elections. However, the real authority in the country lies with one man: the Supreme Leader, Ayatollah Ali Khamenei. Despite the presence of elected officials, Khamenei holds ultimate power over Iran’s political, military, and economic direction.
As the most powerful figure in Iran, the Supreme Leader doesn’t receive a formal salary for his role. Instead, his position is seen as a religious and national duty. But behind this image of selfless leadership lies a far more complex reality. According to U.S. intelligence and investigative reports, Khamenei allegedly oversees a massive business empire worth as much as $200 billion, hidden in plain sight through a little-known organization called Setad.
From Revolution to Supreme Power
Born in Mashhad on July 17, 1935, Ali Khamenei became Iran’s Supreme Leader in 1989, following the death of his mentor, Ayatollah Ruhollah Khomeini. Khomeini led the 1979 Islamic Revolution that overthrew the Western-backed Shah of Iran, Mohammad Reza Pahlavi, transforming the country into a conservative theocracy.
Before his downfall, the Shah had nearly total control over Iran’s oil profits and enjoyed immense wealth. In the 1960s, his monthly oil income reached the equivalent of $115 million in today’s money. By 1979, his personal fortune was estimated at $2 billion, with his relatives controlling another $2 billion globally. Critics accused the Shah of hoarding wealth through stakes in banks, manufacturing, insurance, hotels, and even foreign businesses like General Motors Iran.
The Birth of Setad
After the revolution, a large number of businesses, real estate assets, and bank accounts were abandoned by the Shah’s regime and its allies. Many of these properties were either seized or became subjects of legal disputes.
To deal with this chaos, Ayatollah Khomeini issued a brief decree in April 1989 establishing Setad—short for Setad Ejraiye Farmane Hazrate Emam, or the Headquarters for Executing the Order of the Imam. This organization was tasked with managing and resolving ownership issues of these properties. Khomeini reportedly planned for Setad to be temporary, lasting just two years.
However, just two months later, in June 1989, Khomeini died. His successor, Khamenei, not only preserved Setad but expanded its reach dramatically.
Setad’s Rise Under Khamenei
Instead of dismantling Setad as originally intended, Khamenei grew it into a vast, shadowy economic giant. Setad gradually gained control of companies in nearly every industry—banking, telecommunications, agriculture, pharmaceuticals, and more.
By the early 2000s, Setad had transformed into one of Iran’s most influential institutions. In 2021, its power became even more obvious when President Ebrahim Raisi named Mohammad Mokhber, Setad’s longtime director, as Iran’s First Vice President. Mokhber, under U.S. sanctions for helping Khamenei expand his financial control, symbolized the deep integration of Setad into both the economy and politics.
The “Off-the-Books” Billion-Dollar Empire
In 2013, a Reuters investigation revealed that Setad had quietly built a portfolio of assets worth at least $95 billion. This included businesses as diverse as cement factories, farming operations, contraceptive manufacturers, and luxury properties formerly owned by exiled Iranians.
The U.S. Embassy in Baghdad later claimed the figure might be closer to $200 billion. In 2018, U.S. Secretary of State Mike Pompeo referred to Setad as Khamenei’s personal “off-the-books hedge fund.”
Despite managing such immense wealth, there’s little evidence that Khamenei lives lavishly. He resides in a modest home within a secure compound in Tehran. According to reports, his lifestyle is simple, and he avoids the outward appearance of wealth.
Behind the Curtain: Seizures and Suppression
Setad’s acquisition methods have been widely criticized. What started as a solution to legal property disputes has allegedly become a vehicle for forced takeovers. For example, Parsian Bank—once Iran’s biggest non-government-owned bank—was seized after its executives clashed with Setad. The leadership was placed under house arrest, and the bank’s assets redirected to Setad-linked entities.
Another troubling case emerged in 2019 when an Iranian court ordered the confiscation of property owned by Baha’i families in Ivel village, labeling their faith as a “deviant sect.” The confiscated assets were handed to Setad, showcasing the regime’s use of property seizures to marginalize religious minorities.
Iranian expatriates in the U.S. have also come forward with documents proving Setad seized their properties decades ago. Those properties are now part of major corporations publicly traded in Iran, controlled by Setad. One couple estimated their former stake would be worth over $100 million today. They received no compensation.
Silencing Critics from Within
Even insiders have faced consequences for questioning Khamenei’s financial network. In 2016, former President Akbar Hashemi Rafsanjani made comments about the wealth tied to Khamenei’s family. Soon after, his son Mehdi was sentenced to ten years in prison for corruption—widely interpreted as a warning against speaking out.
Cracks in the Empire
Though Khamenei’s personal wealth remains officially denied, reports consistently suggest he benefits from the vast resources controlled by Setad. This access gives him enormous influence, allowing him to fund projects that support the regime’s survival.
In 2024, a leak exposed a $500 million oil smuggling operation tied to Setad. A broker was granted access to state-owned oil under the guise of bypassing international sanctions. Instead of the profits returning to Iran, they vanished—pointing to corruption even within this tightly controlled empire.
Official Denials Persist
Iranian authorities have repeatedly rejected these allegations, describing them as fabricated and politically motivated. Nevertheless, a growing body of evidence paints a picture of a hidden financial network tied to one of the world’s most powerful and least understood leaders.
