OPPENHEIMER OPTIMISM ON OMANI TOURISM

UNCLAS MUSCAT 001191

SIPDIS

DEPT FOR EB/CBA, NEA/ARPI, AND NEA/PPD
DEPT PLEASE PASS USTR/VESPINEL AND JBUNTIN
USDOC FOR 4520/ITA/MAC/AMESA/OME/MTALAAT

E.O. 12958: N/A
TAGS: ETRD ECON EIND PGOV KMPI KPAO SCUL MU
SUBJECT: OPPENHEIMER OPTIMISM ON OMANI TOURISM

REF: MUSCAT 1077


1. (U) Summary: The Ambassador met with representatives of
Oppenheimer and Fitch Ratings on July 27 to discuss the
"Blue City" tourism project and other economic developments
in Oman. Potential linkages with Boston University and
Oppenheimer of North America also surfaced during the
meeting. End summary.

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The Business Of Oman Is Business
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2. (SBU) On July 27, the Ambassador met with Jerald
Belofsky, Chief Executive Officer of Oppenheimer of North
America LLC, Andrew Steel, Managing Director of Fitch
Ratings, and Oliver Kimche, Associate Director of Fitch
Ratings. The visitors were in Oman to assess and evaluate
the financial development of the "Blue City" tourism project
northwest of Muscat (septel).


3. (SBU) The three men asked the Ambassador's views on the
current investment climate in Oman; the Ambassador replied
that billions of U.S. dollars had already poured into Sohar
and other locations, and reassured the visitors that
companies such as Dow and Bechtel would not have committed
such significant financial resources to the Sultanate if
they were not convinced of its safety and stability.


4. (SBU) The Ambassador then asked the visitors for their
opinion of the Blue City project. Mr. Belofsky noted that a
concession agreement had been concluded with the Ministry of
Tourism, and that Bear Stearns officials were "incredibly
enthusiastic" about the project. Mr. Steel added that Blue
City is a "particularly large and ambitious project" - 35
square kilometers in size, according to the visitors - but
it had been well thought-out. Mr. Steel also observed that
the economic success of the project depends in part on
improving the accessibility and efficiency of air travel
into Muscat.

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Additional Linkages
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5. (U) Mr. Belofsky volunteered that Boston University is
interested in creating educational linkages with Oman,
possibly even opening a branch campus in Muscat. Omani
officials are scheduled to meet with BU representatives on
the margins of the UN General Assembly in September. In
addition, after being informed of MEPI's Business Internship
for Middle Eastern Women Program (BIP),Mr. Belofsky
expressed interest in having a qualified Omani candidate
serve an internship at Oppenheimer's headquarters in New
York.


6. Comment: We plan to reap the windfall that increased
U.S. investment appears to be bringing to our
education/exchange efforts (reftel),and will follow up on
both of these initiatives.

BALTIMORE