NEW OMANI AMBASSADOR IS ALL BUSINESS

UNCLAS MUSCAT 001514

SIPDIS

SENSITIVE

FOR NEA/ARPI; ALSO PASS USTR FOR J. BUNTIN

E.O. 12958: N/A
TAGS: BEXP ECON PREL PINR MU
SUBJECT: NEW OMANI AMBASSADOR IS ALL BUSINESS

REF: A. MUSCAT 1501

B. MUSCAT 642


1. (U) Summary: In a meeting with U.S. and Omani business
executives, Oman's new ambassador-designate to the U.S.
Hunaina al-Mughairy expressed optimism over the bilateral
economic relationship and elicited the assistance of the
business community in identifying project opportunities --
and obstacles -- to conducting business in Oman. End
Summary.

--------------
UPBEAT ABOUT THE FTA
--------------


2. (SBU) On October 5, Ambassador-designate to the United
States Hunaina bint Sultan bin Ahmed al-Mughairy met with
members of the Muscat American Business Council (MABC) to
discuss the bilateral economic relationship. Mughairy, most
recently the New York representative of Oman's Center for
Investment Promotion and Export Development (OCIPED) as well
as the commercial attach to Oman's Mission to the UN (ref
B),stated that the recently concluded US-Oman Free Trade
Agreement (FTA) represented an excellent opportunity for Oman
to expand, in breadth and quantity, its exports to the U.S.
(Note: Mughairy revealed that Commerce and Industry Minister
Maqbool bin Ali Sultan intends to travel to the United States
when it is time to sign the agreement. End note.) Mughairy
stressed the importance of promoting the FTA by hosting
seminars and other events to explain its benefits to local
companies.


3. (U) Mughairy viewed the completion of the FTA as part of
Oman's effort to position itself for long-term economic
growth. She identified the development of the Sohar region's
industrial base and the promotion of its ports in Salalah and
Sohar as examples of Oman's commitment to diversify its
economy and create jobs for Oman's youth (ref A). In
particular, Mughairy cited Dow Chemical's partnership with
the government in forming the Oman Petrochemical Industries
Company and Bechtel's signing of an agreement to build an
aluminum smelter as signs of a robust economic relationship.

--------------
LOOKING FOR ASSISTANCE
--------------


4. (U) Given this backdrop, Mughairy asked for MABC member
assistance in identifying both project opportunities and
potential obstacles to business growth. Several attendees
suggested that the government could make it easier to do
business in Oman; provide training for U.S. executives
interested in working with Omani counterparts; and facilitate
U.S.-Omani business partnerships.


5. (U) Mughairy responded that the government currently is
working with the private sector to streamline business
development regulations, and is working on ways to improve
Oman's infrastructure. She also mentioned that OCIPED
produces informational brochures for U.S. companies
interested in Oman, and she pledged to make these more known
and readily available. Finally, Mughairy cited the
importance of creating awareness of Oman as essential to
developing U.S.-Omani partnerships. She cited a lack of
familiarity with Oman, for example, as one factor in a U.S.
company's last-minute decision in 2002 to withdraw from
developing the Salalah Free Trade Zone.


6. (U) Mughairy concluded the meeting by noting the challenge
she faces in promoting little-known Oman in the United
States. In this regard, she called on MABC members to remain
in touch regarding the identification of potential projects
and obstacles, and to aid her in talking up the Sultanate as
a safe and profitable place to invest and do business.

--------------
A Good Start
--------------


7. (SBU) Mughairy's willingness to accept the MABC's
invitation, as well as earlier spending over an hour in
consultations with Embassy section chiefs, reinforces our
impression that Mughairy stands to be an active and engaged
ambassador. She has a deep familiarity with the U.S., and
her background in trade and commerce makes her ideally suited
to facilitate eventual ratification of the FTA.
BALTIMORE