Identifier
Created
Classification
Origin
04ABUDHABI2171
2004-06-30 11:23:00
CONFIDENTIAL
Embassy Abu Dhabi
how-tonull Diana T Fritz 02/06/2007 05:31:26 PM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM June 30, 2004 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 2171 - ROUTINE) TAGS: ECON, PGOV, PREL Captions: None Subject: UAE: TALK ABOUT TOWN Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 02171 SIPDIS Laser1: INFO: FCS CXABU: ACTION: ECON INFO: P/M AMB DCM POL DISSEMINATION: ECON CHARGE: PROG APPROVED: CDA: RALBRIGHT DRAFTED: ECON: NALLOO CLEARED: ECON: CCRUMPLER; FCS: MOBRIEN; CBD: MCARVER VZCZCADI799 RR RUEHC RUEHZM RUCPDOC RHEBAAA RUEAIIA RHEFDIA RUCJACC DE RUEHAD #2171/01 1821123 ZNY CCCCC ZZH R 301123Z JUN 04 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 4925 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUCPDOC/USDOC WASHDC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RUCJACC/USCINCCENT MACDILL AFB FL
C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 002171
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS OBURN, ALSO CALIENDO
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/30/09
TAGS: ECON PGOV PREL TC
SUBJECT: UAE: TALK ABOUT TOWN
REF: ABU DHABI 1016
C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 002171
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS OBURN, ALSO CALIENDO
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/30/09
TAGS: ECON PGOV PREL TC
SUBJECT: UAE: TALK ABOUT TOWN
REF: ABU DHABI 1016
1. (U) Classified by Charge d'Affaires, a.i. Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (U) The "Talk About Town" series by the U.S. Mission in
the UAE -- Embassy Abu Dhabi and Consulate General Dubai --
is provided on a periodic basis, and intended to report on
local business atmospherics and commercial developments in
the UAE. Although uncorroborated by UAE officialdom and
anecdotal in nature, the cables provide Washington
audiences with the information we hear frequently in the
majlises and living rooms throughout the UAE.
--------------
A Palace Fit for Kings
--------------
3. (SBU) Local sources confirmed with Econoff that the name
of the government-owned Bani Yas Palace, currently under
construction along the Corniche in Abu Dhabi, has been
changed to the "Emirates Palace" to portray the diverse
tribal backgrounds of the Emirates. Although the Bani Yas
is the most prominent tribe in Abu Dhabi (by virtue of its
most famous tribal son, President Zayed),it does not
encompass the heritage of all nationals. The extravagant
Emirates Palace, costing $1.2 billion to build, will serve
as a seven star hotel and convention center. It is being
erected especially to host the GCC Summit that will be held
in Abu Dhabi in December. On a related note, rumor has it
that Abu Dhabi Crown Prince Shaykh Khalifa ordered the
removal of two massive roundabouts leading to the Emirates
Palace (including the local-favorite "Falcon Roundabout" in
front of the Intercontinental Hotel) to create a clear line
of sight as one approaches the Palace. Other sources claim
that the roundabouts are in actuality being removed for
safety reasons.
--------------
Dangerous Liaisons
--------------
4. (U) UAE English-language newspaper Gulf News reported
that the UAEG officially denied stories by Israeli media
claiming extensive talks with Israel were underway about
opening a liaison office in Abu Dhabi. Israeli army radio
and the Israeli Haaretz newspaper had reported that
negotiations regarding the liaison office were already at
an advanced stage and lawyers were now concentrating on
issues such as security and location. However, UAE Defense
Minister and Dubai Crown Prince Shaykh Mohammed bin Rashid
Al Maktoum refuted the allegation as baseless, stating to
the press June 26 that "the UAE has no intention nor a plan
to normalize ties with Israel until the Palestinian issue
is totally resolved in a just and comprehensive way, which
will return to Arabs all their rights." Gulf News reported
that another government source dismissed the rumor as
"Israeli propaganda," claiming "Israel is trying to gain
some assets for the so-called Gaza separation plan."
--------------
More Shopping?
--------------
5. (U) Local business people claim that Shaykha Fatima has
ordered construction of yet another mall in Abu Dhabi, to
be located near the Intercontinental Hotel. The mall will
compete with the existing Abu Dhabi and Marina Malls, as
well as the upcoming Khalidiya Mall, and will also include
residential living space. Adding to this shopping
extravaganza, Marina Mall will also be expanding its
capacity by 40 percent to include an ice-skating rink and a
tower-top restaurant. According to a marketing
representative at Marina Mall, the mall construction is
part of an initiative by the Tourism Board to lure tourists
to Abu Dhabi, who would otherwise go to Dubai.
--------------
Property for Sale, Laundry Included
--------------
6. (C) In a recent meeting with Dubai PolEconoff, MENA
Division Risk Manager at Citigroup Raj Dvivedi (please
protect),commented on Dubai's planned offshore banking
center, the Dubai International Financial Center (DIFC),on
money-laundering, and on the property market. First,
Dvivedi said Citi would probably set up shop in the DIFC,
moving 60 to 80 back office jobs from Bahrain to the DIFC.
Separately, Divendi said that he believed the "number one
risk in Dubai is money-laundering and property." Without
elaborating further, he added that there is a lot of
speculation in the property market, with many snapping up
multiple properties solely with the aim of "flipping" them
for a quick profit. Although Divendi's comments are
nebulous at best, many of our contacts note that Dubai is
over-building, and high property prices are not necessarily
indicative of genuine demand. Many here (including the
UAEG) recognize the emerging property market in Dubai as a
potential new vehicle for money laundering.
--------------
Begging: A Regional Profession
--------------
7. (U) According to press, UAE authorities are attempting
to crack down on a band of roughly 100 beggars that are
exploiting the sympathies of UAE residents. The beggars,
the majority of whom are Saudi and Omani nationals, have
taken permanent refuge in the UAE and claim to be
supporting families back home. Although begging is a banned
practice in the UAE, members of the group have demonstrated
no intention of halting their profitable operations. The
men's GCC nationality allows them to easily evade arrest or
shift location whenever questioned by UAE police for their
suspicious behavior, which includes taking refuge in
mosques and emerging during evenings to begin their begging
escapades. When asked why they have chosen the UAE as their
final destination, a Saudi member of the band responded
that it is due to the generosity of UAE people; donations
to the group are constant and plentiful. The phenomenon of
targeting generous UAE residents is not a new one. In
Ramadan, swoons of beggars from Sudan, Oman, and
surrounding countries flock to the UAE, eager to benefit
from the increased level of alms giving during the holy
month of fasting.
8. (U) This cable has been coordinated with ConGen Dubai.
Albright
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS OBURN, ALSO CALIENDO
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/30/09
TAGS: ECON PGOV PREL TC
SUBJECT: UAE: TALK ABOUT TOWN
REF: ABU DHABI 1016
1. (U) Classified by Charge d'Affaires, a.i. Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (U) The "Talk About Town" series by the U.S. Mission in
the UAE -- Embassy Abu Dhabi and Consulate General Dubai --
is provided on a periodic basis, and intended to report on
local business atmospherics and commercial developments in
the UAE. Although uncorroborated by UAE officialdom and
anecdotal in nature, the cables provide Washington
audiences with the information we hear frequently in the
majlises and living rooms throughout the UAE.
--------------
A Palace Fit for Kings
--------------
3. (SBU) Local sources confirmed with Econoff that the name
of the government-owned Bani Yas Palace, currently under
construction along the Corniche in Abu Dhabi, has been
changed to the "Emirates Palace" to portray the diverse
tribal backgrounds of the Emirates. Although the Bani Yas
is the most prominent tribe in Abu Dhabi (by virtue of its
most famous tribal son, President Zayed),it does not
encompass the heritage of all nationals. The extravagant
Emirates Palace, costing $1.2 billion to build, will serve
as a seven star hotel and convention center. It is being
erected especially to host the GCC Summit that will be held
in Abu Dhabi in December. On a related note, rumor has it
that Abu Dhabi Crown Prince Shaykh Khalifa ordered the
removal of two massive roundabouts leading to the Emirates
Palace (including the local-favorite "Falcon Roundabout" in
front of the Intercontinental Hotel) to create a clear line
of sight as one approaches the Palace. Other sources claim
that the roundabouts are in actuality being removed for
safety reasons.
--------------
Dangerous Liaisons
--------------
4. (U) UAE English-language newspaper Gulf News reported
that the UAEG officially denied stories by Israeli media
claiming extensive talks with Israel were underway about
opening a liaison office in Abu Dhabi. Israeli army radio
and the Israeli Haaretz newspaper had reported that
negotiations regarding the liaison office were already at
an advanced stage and lawyers were now concentrating on
issues such as security and location. However, UAE Defense
Minister and Dubai Crown Prince Shaykh Mohammed bin Rashid
Al Maktoum refuted the allegation as baseless, stating to
the press June 26 that "the UAE has no intention nor a plan
to normalize ties with Israel until the Palestinian issue
is totally resolved in a just and comprehensive way, which
will return to Arabs all their rights." Gulf News reported
that another government source dismissed the rumor as
"Israeli propaganda," claiming "Israel is trying to gain
some assets for the so-called Gaza separation plan."
--------------
More Shopping?
--------------
5. (U) Local business people claim that Shaykha Fatima has
ordered construction of yet another mall in Abu Dhabi, to
be located near the Intercontinental Hotel. The mall will
compete with the existing Abu Dhabi and Marina Malls, as
well as the upcoming Khalidiya Mall, and will also include
residential living space. Adding to this shopping
extravaganza, Marina Mall will also be expanding its
capacity by 40 percent to include an ice-skating rink and a
tower-top restaurant. According to a marketing
representative at Marina Mall, the mall construction is
part of an initiative by the Tourism Board to lure tourists
to Abu Dhabi, who would otherwise go to Dubai.
--------------
Property for Sale, Laundry Included
--------------
6. (C) In a recent meeting with Dubai PolEconoff, MENA
Division Risk Manager at Citigroup Raj Dvivedi (please
protect),commented on Dubai's planned offshore banking
center, the Dubai International Financial Center (DIFC),on
money-laundering, and on the property market. First,
Dvivedi said Citi would probably set up shop in the DIFC,
moving 60 to 80 back office jobs from Bahrain to the DIFC.
Separately, Divendi said that he believed the "number one
risk in Dubai is money-laundering and property." Without
elaborating further, he added that there is a lot of
speculation in the property market, with many snapping up
multiple properties solely with the aim of "flipping" them
for a quick profit. Although Divendi's comments are
nebulous at best, many of our contacts note that Dubai is
over-building, and high property prices are not necessarily
indicative of genuine demand. Many here (including the
UAEG) recognize the emerging property market in Dubai as a
potential new vehicle for money laundering.
--------------
Begging: A Regional Profession
--------------
7. (U) According to press, UAE authorities are attempting
to crack down on a band of roughly 100 beggars that are
exploiting the sympathies of UAE residents. The beggars,
the majority of whom are Saudi and Omani nationals, have
taken permanent refuge in the UAE and claim to be
supporting families back home. Although begging is a banned
practice in the UAE, members of the group have demonstrated
no intention of halting their profitable operations. The
men's GCC nationality allows them to easily evade arrest or
shift location whenever questioned by UAE police for their
suspicious behavior, which includes taking refuge in
mosques and emerging during evenings to begin their begging
escapades. When asked why they have chosen the UAE as their
final destination, a Saudi member of the band responded
that it is due to the generosity of UAE people; donations
to the group are constant and plentiful. The phenomenon of
targeting generous UAE residents is not a new one. In
Ramadan, swoons of beggars from Sudan, Oman, and
surrounding countries flock to the UAE, eager to benefit
from the increased level of alms giving during the holy
month of fasting.
8. (U) This cable has been coordinated with ConGen Dubai.
Albright