Identifier
Created
Classification
Origin
05RIYADH9434
2005-12-21 09:24:00
CONFIDENTIAL
Embassy Riyadh
Cable title:  

EP TRIBAL FAMILY FLEXES ITS POLITICAL AND ECONOMIC

Tags:  PGOV ECON KDEM SA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 009434 

SIPDIS

SIPDIS

DHAHRAN SENDS
PARIS FOR ZEYA, LONDON FOR TSOU

E.O. 12958: DECL: 12/20/2015
TAGS: PGOV ECON KDEM SA
SUBJECT: EP TRIBAL FAMILY FLEXES ITS POLITICAL AND ECONOMIC
MUSCLE

REF: RIYADH 6859

Classified by Consul General John Kincannon for reasons 1.4
(b) and (d).

-------
Summary
-------

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 009434

SIPDIS

SIPDIS

DHAHRAN SENDS
PARIS FOR ZEYA, LONDON FOR TSOU

E.O. 12958: DECL: 12/20/2015
TAGS: PGOV ECON KDEM SA
SUBJECT: EP TRIBAL FAMILY FLEXES ITS POLITICAL AND ECONOMIC
MUSCLE

REF: RIYADH 6859

Classified by Consul General John Kincannon for reasons 1.4
(b) and (d).

--------------
Summary
--------------


1. (C) Four brothers from the Al-Dossari family outlined to
the CG and Consulate staff their family's business and
political enterprises. Yousef, Khalifa, Khalid, and Mohammed
Al-Dossari, together with two other brothers, run a company
that has expanded from supplying auto parts to managing
international investment and real-estate holding companies
from their Eastern Province (EP) base. Their foray into
politics began earlier this year, when Khalifa received the
most votes of any candidate for the metropolitan Dammam
municipal council. Yousef, the eldest brother, is organizing
a group to challenge the slate of powerful current head of
the EP Chamber of Commerce & Industry (EPCCI),Abdul Rahman
Al-Rashed, in the February elections to the EPCCI. The
brothers appear to be activists: "we need to engage the
government," said Yousef. Western-educated, with ample
financial resources, formidable campaign skills, and strong
relationships with EP tribal groups, the Dossaris are a force
to be reckoned with in the EP. End summary.

--------------
From Car Parts to Financial Services
--------------


2. (C) CG and PolOff met with Yousef, Khalifa, Khalid, and
Mohammed Al-Dossari on December 19 at their offices on the
outskirts of Dammam. The Dossari brothers own Yousef Ahmed
Rashid Al-Dossari & Brothers Company and Al Dammam
Development. Yousef Al-Dossari & Brothers Company began in
the auto parts and service business (primarily dealing in
General Motors products) but has since evolved to focus on
investments, particularly in the financial services sector,
while Al Dammam Development focuses on real estate. Khalid
and Mohammed, who have primary operational responsibility for
the companies, outlined some of their holdings, all owned in
partnership with other investors and companies: three
companies in Bahrain, including a bank and the first mortgage
company; a USD 600 million joint venture with a Kuwaiti

partner in consumer finance; a mortgage company and bank in
Riyadh; etc.


3. (C) The company is investing in the Saudi stock market
but hedging its bets through holdings in real estate and in
investments outside of Saudi Arabia, including the Gulf
countries (except for Qatar, which "doesn't like the Saudis")
and China. "We consider the Gulf as one large market
dependent on the price of oil," Khalid explained, "so we see
investing in China as a way of diversifying out of the Gulf."
The brothers believe that investment banking will provide
excellent opportunities for companies that enter the market
quickly. They are looking for an American partner for a USD
1 billion investment in the sector but say that U.S.
companies are reluctant because of concerns with "procedures
and regulations." Citigroup and HSBC are said to be looking
to enter the investment banking sector directly, the brothers
said, whereas BNP Paribas and a Japanese bank were looking to
enter with local partners.

--------------
Dreams and Realities for a Council Member
--------------


4. (C) The conversation turned to Dammam's run-down
infrastructure and other regional development problems, and
PolOff suggested that Khalifa, recipient of the most votes in
the election for the municipal council of metropolitan
Dammam, was in a good position to tackle these problems. "It
turns out we are just editors," Khalifa replied ruefully,
referring to the council members and to their limited
authority to make non-binding recommendations to the mayor;
"I am beginning to wonder why I ran." His brother Yousef was
more optimistic: "If the council elects a good president,"
he said with a smile, nodding at Khalifa, "we will see what
they can do. We need to give the government confidence that
we will help develop the area in the best way, and we need to
speak up."


5. (C) Khalifa went on to share some of his visions for
Dammam: "I was thinking to build up a city like a Dubai or
Houston, from what we already have or even from reclaimed
land. We need to build a real downtown." Another part of
his vision involved developing a marina and waterfront area
for the city, modeled on successful projects he had seen in
the United States.

--------------
The Dossari Electoral Machine Gears Up Again
--------------


6. (C) The CG said he understood that Yousef was going to
run for the EPCCI elections in February. Yousef confirmed
that he was indeed leading a slate of candidates to challenge
the "Ta'awwun" slate of Abdul Rahman Al-Rashed, the powerful
current president of the EPCCI. "Don't get me wrong - Abdul
Rahman is a friend, and when this is all over he will still
be a friend. But the problem with him is that he is too
closed. He does not want to spend any money. He has too
many people sitting on the Board doing nothing. What have
they done in four years? It is time for a new generation
with vision." Launching with animation into his campaign
platform, he ticked off the major issues facing the EP
business community: "Saudization, the impact of the WTO
accession, labor, development, mergers." If elected as
president of the Board, Yousef said, he would devote himself
entirely to running the chamber as an activist, in contrast
to Al-Rashed, whom he described as devoting too little time
to the Chamber. If elected, Yousef said he would actively
lobby the government for changes that would improve the
business climate, especially for small and medium-sized
businesses.


7. (C) Asked by PolOff if any women were on his slate,
Yousef said no. "I began planning my slate eight months ago,
building a coalition and developing a platform" he said.
"The government should have announced that women could run
further in advance." He went on to outline his campaign
strategy, which includes extensive outreach throughout the
EP. "We will host a dinner here for 3,000 small businessmen
here this week, and we will do it everywhere in the province,
all the way to Hafr Al-Batn. Abdul Rahman will now know what
to do," he continued with a grin. "Remember, he does not
like to spend money." The Dossari brothers attributed
Khalifa's success in the municipal council elections to a
well-planned election campaign that included massive spending
("We don't tell people how much, but it was a lot," Mohammed
said),personal outreach, and the general popularity of the
Dossaris, perhaps the EP's largest tribe. "After Khalifa won
in the elections, we took out an ad in the paper inviting all
of his supporters to a dinner in Dammam," Yousef said.
"Seven thousand came. And even if they hadn't found dinner,
we were there to shake their hands."

--------------
Comment and Tribal Bio Note
--------------


8. (C) The Ahmed Rashid branch of the Dossari family is
clearly one to be reckoned with. We were impressed with the
business acumen of the four brothers we met, three of whom
were educated in the U.S. (as were the two other brothers we
did not meet). Their political skill is perhaps even more
impressive: they seem to have melded western-style campaign
tactics of planning, developing a platform, and managing a
media campaign with Saudi values of personal availability and
tribal hospitality. In the past, prominent local businessmen
seem to have contested election to the EPCCI board more for
the prestige of winning than for the chance to lead the
chamber (reftel). Yousef's slate may represent a positive
change to that trend. "In the last three years, can you name
one Saudi minister Abdul Rahman has brought down from
Riyadh?" Yousef asked. "We should be doing that all the
time."


9. (C) The Dossaris are a tribe originally from Wadi
Al-Dawaser, a relatively fertile area in the Najd. Several
centuries ago, in response to a severe drought, part of the
tribe moved east, settling on the Saudi coast and in
neighboring Gulf states, fortuitously and coincidentally in
oil-rich areas - many Dossaris now work at Aramco, including
Aramco CEO Abdullah Jumaa'. There is currently no recognized
leader to the Dossari tribe in the EP, although, according to
Yousef, the tribe would select a leader during a major
crisis. End comment and tribal bio note.

(APPROVED: KINCANNON)
GFOELLER