SAUDI INVESTOR DEVELOPING HARAMOUS REGION

C O N F I D E N T I A L DJIBOUTI 000492

SIPDIS

E.O. 12958: DECL: 04/05/2014
TAGS: PREL PGOV AMGT ABLD ECON ETRD EINV DJ SA
SUBJECT: SAUDI INVESTOR DEVELOPING HARAMOUS REGION

REF: DJIBOUTI 340

Classified By: Pol/Econ Erinn C. Reed for reasons 1.4 (b) and (d)


1. (U) PolOff, Econ/Comm Assistant and OBO
representative met April 4 with Mohammed M. Ali Yamani,
Managing Director of Maya Trading Company in Jeddah and
Fahmi Ahmed Al-Hag, President Guelleh's Advisor on
Investment. Yamani recently signed a contract with the
Government of Djibouti, including full land ownership
rights, to develop the Haramous region of Djibouti city.
(See Reftel) Embassy met with Yamani to discuss the
impact the Haramous Village development would have on
possible sites for a New Embassy Compound. All three
possible sites are located within the Haramous Village
area.


2. (U) Al-Hag led off discussions reminding Embassy
representatives that the U.S. had not made any formal
requests for sites to the government and a decision
would have to be made quickly due to the high demand
for land in the last residential zoned sector of the
city. Al-Hag explained that the amount of land
designated for the Haramous Village project is 840,000
square meters, which was increased from the initial
number cited in reftel. Al-Hag also explained that
though this region has been undeveloped up to this
point, there are twenty landowners in the Haramous
area that would be re-imbursed for the relinquishment
of their holdings.


3. (U) Yamani's attitude was very cordial and eager,
commenting that the Embassy would be a client and any
special considerations would be accommodated. Yamani
showed Embassy representatives a detailed plan of
Haramous Village and discussed the time frame and
process of construction. Haramous Village is intended
to be a new high-end residential area, with an average
villa cost of $250,000-350,000. The village will have
260 total new villas, as well as a housing complex with
apartments to rent. These apartments will be available
to rent for short periods of time for businessmen
traveling through Djibouti for longer amounts of time.
Haramous Village will have Mosques, reception halls, a
recreation center, police and fire stations, a clinic,
commercial center and a luxury hotel on the water.
The project will have all the most modern technological
infrastructure and will be equipped with piping for
eventual sewage disposal systems that would accompany a
waste water treatment plant if Djibouti were to convert
from its current septic tank system. Yamani emphasized
that the project was at an early stage and all requests
could be accommodated and plans adapted before
construction began. Yamani indicated a willingness to
work with whichever site the U.S. picked for a new
Embassy.


3. (C) COMMENT: Post information reveals that Yamani
has influential ties with the President's brother,
Said Omar Guelleh. Post has also heard rumors
that bribes may have been passed to expedite the
acquisition and processing of permits for the Haramous
development project. Post does not have credible
evidence of these bribes, or that any money exchanged
went beyond the standard favors that grease the wheels
of business in Djibouti. However, Post's impression
of Yamani was that of a very honest, genial, and
professional businessman willing to do the job right
the first time and adapt to meet the needs of a
potential client. Any information Embassy Riyadh or
Consulate Jeddah can shed on Yamani would be greatly
appreciated. End Comment.
RAGSDALE