Identifier
Created
Classification
Origin
05ABUDHABI1170
2005-03-14 11:16:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:  

DUBAI BUSINESSMAN CRITICIZES DUBAI CROWN PRINCE

Tags:  PGOV ECON PREL PINR TC 
pdf how-to read a cable
null
Diana T Fritz 12/06/2006 03:10:12 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
C O N F I D E N T I A L ABU DHABI 01170

SIPDIS
CXABU:
 ACTION: POL
 INFO: RSO AMB DCM MEPI P/M ECON DAO

DISSEMINATION: POL
CHARGE: PROG

APPROVED: AMB:MJSISON
DRAFTED: ECON:OJOHN
CLEARED: DCM:RALBRIGHT, POL:JMAYBURY, CGD:JDAVIS

VZCZCADI537
PP RUEHC RUEHDE RHEHNSC
DE RUEHAD #1170 0731116
ZNY CCCCC ZZH
P 141116Z MAR 05
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 8699
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 4932
RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L ABU DHABI 001170 

SIPDIS

STATE FOR NEA/ARPI
NSC FOR NEA STAFF

E.O. 12958: DECL: 03/14/2015
TAGS: PGOV ECON PREL PINR TC
SUBJECT: DUBAI BUSINESSMAN CRITICIZES DUBAI CROWN PRINCE
AND COMMENTS ON PRESIDENT KHALIFA'S FINANCES


Classified By: Classified by Ambassador Michele J. Sison for reasons
C O N F I D E N T I A L ABU DHABI 001170

SIPDIS

STATE FOR NEA/ARPI
NSC FOR NEA STAFF

E.O. 12958: DECL: 03/14/2015
TAGS: PGOV ECON PREL PINR TC
SUBJECT: DUBAI BUSINESSMAN CRITICIZES DUBAI CROWN PRINCE
AND COMMENTS ON PRESIDENT KHALIFA'S FINANCES


Classified By: Classified by Ambassador Michele J. Sison for reasons 1.
4 (b & d).


1. (C) Summary: In a recent conversation with DCM, Dubai
developer and government official Mohammed Al-Abbar sharply
criticized Dubai Crown Prince Sheikh Mohammed bin Rashid
Al-Maktoum (MbR) for arrogance and for losing touch with the
people of Dubai. Al-Abbar told DCM that the only reason MbR
had approved a recently announced housing project for UAE
nationals in Dubai was to preempt an announcement that the
federal government would be undertaking a similar project.
Al-Abbar claimed that UAE President Sheikh Khalifa bin Zayed
Al-Nahyan had given away his personal inheritance to charity
and did not control fabulous personal wealth. End Summary.


2. (C) On February 20, Dubai developer, Chairman of Emaar
Properties (Dubai's largest publicly traded real estate
development company),and Director General of the Dubai
Department of Economic Development Mohammed Al-Abbar told DCM
that MbR had a huge ego and had lost touch with ordinary
Emiratis. He claimed MbR was increasingly isolated and
surrounded by a small coterie of close advisors and rarely
circulated with the people. He noted that MbR no longer let
people speak during his meetings. He also complained that
MbR was too tied in to "big business" (i.e., Dubai state
owned companies). An ordinary businessman, he said could not
compete with "Dubai Inc."


3. (C) Al-Abbar also complained that MbR was focusing on mega
projects to the detriment of affordable housing for ordinary
Emiratis. Al-Abbar said that he had recommended that Dubai
build affordable housing for Emiratis and given MbR a
proposal two years ago. According to Al-Abbar, MbR "sat" on
the proposal until he learned that the Federal Ministry of
Public Works had offered Emaar USD 100 million to build
affordable housing in the northern emirates. Only then, did
he announce that Dubai would be building 10,000 new homes.
Al-Abbar said that MbR had made the announcement to ensure
that the Ministry of Public Works wouldn't "beat him to the
punch."


4. (C) Al-Abbar asserted that Dubai was operating under a
permanent budget deficit, since its infrastructure costs were
high and government revenues were low, depending on dwindling
oil production and limited custom revenues. He confirmed
that the Emirate of Abu Dhabi had cut off subsidies to Dubai
two years ago. He described UAE president Sheikh Khalifa bin
Zayed Al-Nahyan's decision to increase sharply funding for
infrastructure projects in the four poorer northern emirates
as in keeping with Sheikh Khalifa's governing philosophy to
"weaken the Sheikhs, strengthen the people."


5. (C) Al-Abbar briefly discussed the state of Sheikh
Khalifa's personal finances, explaining that Emaar managed
some of Sheikh Khalifa's investments. According to Al-Abbar,
Sheikh Khalifa had given his inheritance to charity and did
not have great private wealth. However, he explained that
Sheikh Khalifa, as the sovereign, could borrow money on his
personal guarantee. Al-Abbar's company would invest such
funds and return the earnings to Khalifa. (Comment: Emboffs
have heard discussions about Sheikh Khalifa's -- relative --
poverty before, including allegations that former first lady
Sheikha Fatima had engineered that the bulk of Sheikh Zayed's
personal wealth go to her sons and not to the other sons of
former President Zayed. Sheikh Khalifa is not one of the
"sons of Fatima." End Comment.) Sheikh Khalifa still
controls Abu Dhabi's considerable oil revenues and has
not/not turned over control of the Supreme Petroleum Council
(the organization that controls Abu Dhabi's oil policy and is
a source of its wealth) to Crown Prince Sheikh Mohammed bin
Zayed, despite turning over the chairmanship of the Abu Dhabi
government to MbZ. Al-Abbar doubted Sheikh Khalifa would
turn over decisions regarding national resources to MbZ or
the rulers of the other Emirates. He commented that Khalifa
would prefer to vest budgetary authority in the Federal
National Council and predicted that Khalifa would institute
elections for this currently appointed body.


6. (C) Comment: While it is true that there is a good deal
of uneasiness among Dubai notables about the pace of
development, most of our Dubai interlocutors are sympathetic
to MbR's basic vision for Dubai's future. He is aggressively
pushing the emirate to grow and to diversify its economy away
from its --dwindling -- oil reserves. Following an Emaar
stock market debacle several years ago that cost many Dubai
businessmen many millions of dollars, Al-Abbar has fallen out
of favor, and it is possible that Al-Abbar is to some extent
reflecting his own sense of being "cut off" from MbR. End
Comment.
SISON