DEVELOPMENT AID TO ABU DHABI'S WESTERN REGION

C O N F I D E N T I A L ABU DHABI 003546 SIPDIS E.O. 12958: DECL: 08/16/2015 TAGS: ECON PGOV EPET TC SUBJECT: DEVELOPMENT AID TO ABU DHABI'S WESTERN REGION REF: A. ABU DHABI 3241 ¶B. ABU DHABI 1317 Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d). ¶1. (C) Summary: Abu Dhabi Executive Council members told Econchief that the Emirate of Abu Dhabi's western region was relatively underdeveloped and poorly served, especially in the areas of health care and education. They were working on a plan to improve services and infrastructure in the western region, the population of which is largely Emirati. Their stated view was that, given high oil prices, this was an appropriate time to address the concerns of western region residents. End Summary ¶2. (C) During President Khalifa's July 21 to 23 visit to the Emirate of Abu Dhabi's western region, he publicly stated his intention to improve the infrastructure in the region. Econchief met, separately, with Executive Council member Khaldoon Al-Mubarak and Executive Council member and U/S of the Abu Dhabi Department of Finance Hamad Al-Suwaidi to discuss the needs of western region residents and the Emirate of Abu Dhabi's plans to address these needs. Both explained that the western region is largely underdeveloped and lacks access to government services. The education and health care systems are poor and there are few job opportunities for residents. Al-Suwaidi noted that there are no full-service hospitals in the western region, and that aside from a teachers college, no institutions of higher education. Al-Mubarak explained that western region residents needed to travel to Abu Dhabi to pay fines, or to renew licenses or passports. Al-Suwaidi noted that women were especially disadvantaged in that there were few jobs available to them in the western region, and implied that their ability to travel to the city of Abu Dhabi was limited by family and social pressures. The goal, therefore, was to improve access to services and economic opportunities for the residents. ¶3. (C) Both stressed the political and moral imperative to address western region concerns. Although the overall population is small (around 100,000 according to Al-Mubarak), Al-Suwaidi noted that it is largely composed of UAE nationals. Al-Mubarak stressed that President Khalifa is committed to helping his people, and added that, with oil at over $60 a barrel, the timing was right. He also commented that if the emirate failed to act when it had the funds, the situation could "blow-up" in the future. (Note: Al-Mubarak appeared more concerned about large scale visible disparities of wealth breeding resentment than about any imminent security risk. The western region contains Abu Dhabi's main onshore oil fields and export terminal and borders Saudi Arabia.) ¶4. (C) Al-Mubarak, who is in charge of directing Abu Dhabi's plan for developing the western region, said that it involved several factors. Abu Dhabi would create a municipality for the western region, which would be more responsive to the needs of the residents. He added that Abu Dhabi would also set up branches of federal ministries to ensure that services (such as passport renewals) would be more easily available. In addition, the emirate government would build roads, a hospital, build and improve schools, and look at ways to increase industrial investment in the area. ¶5. (C) Al-Mubarak emphasized that the plan was still in the preliminary stages and he did not have budget estimates for the projects yet. Al-Suwaidi (as the money man) said that he did not think the projects would be that expensive, or that it would be difficult finding funds. ¶6. (C) Comment: President Khalifa is also the ruler of the Emirate of Abu Dhabi. As he settles into his job, he is meeting with citizens and trying to address their concerns. His highly visible development proposals also help ensure that some of the oil windfall makes it to the UAE's poorer rural areas, minimizing any grounds for resentment. End Comment. SISON