NEW UAE FEDERAL CABINET ANNOUNCED

C O N F I D E N T I A L SECTION 01 OF 06 ABU DHABI 000453 SIPDIS NOFORN SIPDIS STATE FOR NEA/ARPI AND INR/B STATE PASS TO USTR FOR AUSTR DONNELLY, DOUG BELL NSC FOR NIK RAMCHAND E.O. 12958: DECL: 02/09/2016 TAGS: PINR PGOV ETRD KISL KDEM AE SUBJECT: NEW UAE FEDERAL CABINET ANNOUNCED REF: A. ABU DHABI 430 ¶B. 05 ABU DHABI 4905 ¶C. 04 ABU DHABI 3955 Classified By: Classified by Ambassador Michele J. Sison, reasons 1.4 ( b) and (d). ¶1. (C) Summary: The UAE leadership announced a ministerial reshuffle late February 9. The reshuffle preserves key U.S. Mission interlocutors, especially Sheikh Abdullah bin Zayed al-Nahyan (AbZ),who becomes Minister of Foreign Affairs. The UAE's new Prime Minister, Sheikh Mohammed bin Rashid al-Maktoum (MbR),retains the defense portfolio, although the real decision-maker on military issues continues to be Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, Sheikh Mohammed bin Zayed al-Nahyan (MbZ). Holdovers also include the UAE co-chairs at our FTA negotiations, Economy Minister Sheikha Lubna al-Qassimi and Minister of State for Financial Affairs Mohammed Khalfan bin Kharbash; Labor Minister Ali bin Abdullah al-Ka'abi, who has worked with us on labor issues of concern; Interior Minister Sheikh Saif bin Zayed, an important interlocutor on security related matters; and Higher Education Minister Sheikh Nahyan bin Mubarak al-Nahyan, well-known for his educational reform initiatives. Educational reform also gets a boost with the selection of Dr. Hanif Hassan Ali, the Vice Chancellor of the all-women's Zayed University, as Education Minister. The decision to split up the Ministry of Justice, Islamic Affairs, and Endowments is a signal that the UAE leadership wants to devote more resources to ensuring that moderate Islam is preached and taught in mosques and schools. The creation of a Ministry of Federal National Council (FNC) affairs under the reform-oriented Dubayyan Anwar Gargash should ensure that President Khalifa's announcement of limited elections for half the consultative body is implemented. ¶2. (C) Summary continued: In the reshuffle, Dubai and the Northern Emirates pick up more portfolios than before. We will watch to see to how the strong and ambitious MbR manages the Cabinet and whether that may encourage rule by institutions rather than personality. All told, the 23-member Cabinet includes eight new members, including the second female minister. Five portfolios are new (government sector development, Federal National Council affairs, social affairs, environment and water, and culture, youth and social development),and four have been abolished (information, communications, agriculture and fisheries, and supreme council and GCC affairs.) The Cabinet is scheduled to be sworn in on February 11. End Summary. ¶3. (C) The first Cabinet of Ministers under already named Prime Minister Sheikh Mohammed bin Rashid includes eight new faces, additional technocrats, two women, and a relatively better balance of representatives from the different emirates. Abu Dhabi emirate's ruling al-Nahyan family still holds many of the important portfolios (deputy prime minister, foreign affairs, interior, presidential affairs, higher education, public works). The newly constituted Cabinet preserves most of our principal interlocutors, with the exception of Sheikh Hamdan bin Zayed al-Nahyan (HbZ),who sheds the title of MinState for Foreign Affairs and will concentrate on his role as a deputy prime minister. However, the al-Nahyans will be very much present on the international scene with HbZ's younger brother, Sheikh Abdullah, taking over the reins of the foreign ministry. AbZ's appointment comes as no surprise to us (ref A). He has handled several of the tough issues, including Syria/Lebanon, Palestinians, and more recently, the UN, and has been the UAE's principal interlocutor at many of our bilateral meetings during the past three years. He is favorably regarded in Washington circles and, unlike HbZ, speaks fluent English. Al-Sha'ali, HbZ's successor as MinState for Foreign Affairs, should also be an excellent interlocutor in the future, having served as the UAE's Ambassador to both Washington (1992-1999),the UN and UNSC (1986-1987),and UN-Geneva. -------------- The new Cabinet lineup -------------- ¶4. (C/NF) The following is a description of the newly ABU DHABI 00000453 002 OF 006 reconstituted Cabinet of Ministers, including brief profiles of each Minister: Prime Minister/Minister of Defense -------------- UAE Vice President Sheikh Mohammed bin Rashid al-Maktoum is the Ruler of Dubai, the second most powerful emirate in the UAE. A dynamic and pro-business leader, MbR inherited the title of Ruler of Dubai upon the death, January 3, of his older brother, UAE Vice President and Prime Minister Sheikh Maktoum. The Supreme Council of rulers selected him to succeed Maktoum as Vice President and Prime Minister. One of our most important contacts, MbR is expected to work closely with Abu Dhabi emirate's al-Nahyan ruling family, and HbZ in particular, to strengthen the federal government,s role. MbR retains the defense portfolio, but the real decision-maker in the military will continue to be Sheikh Mohammed bin Zayed. Deputy Prime Minister -------------- Sheikh Sultan bin Zayed al-Nahyan continues in this role. He is the second eldest son of the President. Sultan has a history of alcohol and chemical dependency and has spent some time in psychiatric institutions. The appointment of his younger half-brother MbZ as Deputy Crown Prince of Abu Dhabi in November 2003, effectively took him out of the running to be Ruler of Abu Dhabi. In the past few years, his official duty in chairing the Council of Ministers in the absence of the late Prime Minister Maktoum has been largely titular. Deputy Prime Minister -------------- Sheikh Hamdan bin Zayed al-Nahyan continues in this role. HbZ is a son of the late President Sheikh Zayed and Sheikha Fatima. He was the de facto Foreign Minister since 1990 and one of the USG's primary interlocutors. Since his appointment as Deputy Prime Minister in fall 2003, HbZ has played a critical role in coordinating policy among the seven emirates and exerting discipline in the Cabinet. It remains to be seen whether Sheikh Hamdan will carry on as a key interlocutor with former Iraqi Prime Minister Iyad Allawi and on the UAE-Saudi border issue. Minister of Finance and Industry -------------- Dubai Deputy Ruler Sheikh Hamdan bin Rashid al-Maktoum continues in the role of titular Finance Minister, though Minister of State for Finance Kharbash (a fellow Dubayyan) actually fills most aspects of the Finance Minister role for the UAE. Hamdan concentrates on municipal and financial affairs of Dubai emirate. Minister of Interior -------------- Major General Sheikh Saif bin Zayed al-Nahyan continues in this same role. He is a graduate of UAE University in al-Ain, and he studied English in the UK where he also attended a training program for police at Scotland Yard. He is a good friend of the U.S. and pay close attention to Embassy security. Sources inside his ministry and Abu Dhabi police speculate that he would be replaced over a disagreement with MbZ over a security communications contract. Minister for Presidential Affairs -------------- Sheikh Mansour bin Zayed al-Nahyan continues in his role as Minister. He is one of the six sons of Sheikh Zayed and Sheikha Fatima. He is Deputy Chairman of the Sheikh Zayed Charitable Foundation, and Chairman of the International Petroleum Investment Corporation. Mansour was an English student at Santa Barbara Community College in 1989. He speaks English well, but his academic record was poor. Minister of Foreign Affairs -------------- ABU DHABI 00000453 003 OF 006 Sheikh Abdullah bin Zayed al-Nahyan replaces Rashid Abdullah al-Noaimi, a figurehead whose role was largely confined to representing the UAE in international fora and ceremonial gatherings. (Al-Noaimi's son, Abdullah Rashid, is the under secretary and a key interlocutor of ours.) AbZ is the SIPDIS youngest of the sons of Sheikh Zayed and Sheikha Fatima. AbZ was being groomed for his new portfolio in recent years, capped last fall by his attendance at the UNGA where he gave the UAE's plenary speech. AbZ also has led UAE diplomatic efforts in Syria, Lebanon, and the Palestinian territories. He will have the task of coordinating the UAE's positions on difficult issues )- such as natural resources -) in the ongoing FTA negotiations with the U.S., and possibly the contentious UAE-Saudi border issue. As Minister of Information and Culture from 1997, he had a moderating influence on UAE media and expanded free press in the UAE. Now that the Information Ministry has been abolished, the functions of the foreign media will be handled by MFA, and the Cabinet will soon decide to set up a Supreme Council for Media, which will be responsible for setting and developing media policies. With the abolition of the Information Ministry AbZ has been a reformer by nature. He has chaired the bilateral Strategic Partnership meetings, has many contacts in the U.S., and speaks English fluently. Minister of Higher Education and Scientific Research -------------- -------------- Sheikh Nahyan bin Mubarak al-Nahyan held this title prior to the Cabinet reshuffle that took place in November 2004. He oversaw the merger of the Education and Higher Education portfolios during the past 16 months. He is the Chancellor of all the public universities in the UAE. He is a leading advocate of education reform in the UAE who is sometimes attacked by religious conservatives for his emphasis on women,s education and refusal to limit access to the Internet. Minister of Public Works -------------- Sheikh Hamdan bin Mubarak al-Nahyan continues in this role. He is a younger brother of the Minister of Higher Education. Minister of Economy -------------- Sheikha Lubna al-Qassimi continues in her role as Minister, although she will no longer have the Planning portfolio. The Cabinet apparently will establish a Supreme Council for Planning. She was the first female Minister appointed to the UAE Cabinet in November 2004. She is an excellent contact of the U.S. Embassy and Consulate General. She was previously Chief Executive Officer of Tejari.com, an online marketplace. Educated at California State University at Chico, she is a dynamic and highly intelligent leader who has cultivated close ties with many U.S. officials and business leaders. She is a true believe in open economies and free trade, and has played an important role in U.S.-UAE FTA negotiations as UAE co-chair with Dr. Kharbash. A protege of MbR, Sheikha Lubna is actually a member of Sharjah emirate's ruling family. Minister of Justice -------------- Mohammed bin Nakhira al-Daheri has been Minister of Justice, Islamic Affairs, and Endowments since 1997. He left the military to become UAE Attorney General in 1992 and served in that position until he was promoted to his present position. The Ministry is being split up to guarantee that sufficient resources are devoted to ensuring that moderate Islam is preached and taught in UAE mosques and schools. Islamic Affairs and Endowments will become a separate organization, but without cabinet status. Minister of State for Financial and Industrial Affairs -------------- -------------- Dr. Mohammed Khalfan bin Kharbash, an important player in the U.S.-UAE FTA negotiations, continues in his role as the Minister of State (and de facto Minister of Finance). His departure had been rumored by more than one Embassy contact, ABU DHABI 00000453 004 OF 006 in part because of health problems. He is a well-regarded reformer who appears to have the support of both the Abu Dhabi and Dubai ruling families. He is also Chairman of the Dubai Islamic Bank. Minister of Energy -------------- Mohammed bin Dha'en al-Hamili continues in his role as Minister. A good interlocutor on oil issues, al-Hamili is from the Emirate of Abu Dhabi and was the director of Marketing and Refining for the Abu Dhabi National Oil Company (ADNOC) before his appointment to the Cabinet in November ¶2004. He was formerly the UAE governor to OPEC. He is a Harvard Business School graduate. Minister of Labor -------------- Dr. Ali bin Abdullah al-Ka'abi continues in his role as Minister. Prior to his Cabinet appointment in November 2004, he was a manager at the UAE Offsets Group. An excellent interlocutor on labor issues, he holds a PhD in engineering management, and software and information system management from George Washington University. He is also a graduate of Sandhurst University Military College. He has previously worked as an IT adviser with the UAE Armed Forces, an IT manager in the Washington office of the Abu Dhabi Investment Authority, and an IT manager in the office of the UAE military in Washington. In the past 16 months, al-Ka'abi has had to tackle the difficult labor issues facing the UAE, including stiffening regulations against unscrupulous employers. Minister of Governmental Sector Development -------------- Sultan bin Saeed al-Mansouri, appointed in November 2004 as Minister of Communications, sees his old Ministry dismantled and takes over a new Ministry. He is from Dubai and is Chairman of the Dubai Islamic Insurance and Reinsurance Co. and a Vice Chairman of Dubai Islamic Bank. From 1998 until his appointment to the Cabinet, he was a managing partner of al-Nabooda Group. He holds a degree in mechanical engineering from the University of Michigan. Minister of State for Cabinet Affairs -------------- Mohammed Abdullah al-Gergawi replaces Saif Khalfan al-Ghaith. He is MbR's closest adviser, especially on issues of governance and quality control. His appointment is a strong signal that MbR intends to play a very active role as Prime Minister. Born in 1963, he has held the positions of Secretary General of Dubai Executive Council, Executive SIPDIS Chairman of Dubai Holding, Chairman of Dubai Development and Investment Authority, and Managing Director at Dubai Media Corporation. He supervised the launch and implementation of many projects in Dubai, including Dubai Internet City, Dubai Media City, the Knowledge Village, Dubai Land, Dubai Medical City, and Dubai Press Club. He studied business management in Michigan. Minister of State for Foreign Affairs -------------- Mohammed Hussain al-Sha'ali succeeds HbZ, one of the USG's key interlocutors on foreign affairs the past decade. He is a thoughtful person who believes in increasing public participation in government. From Ajman emirate, al-Sha'ali holds a BA degree in administration and economy from the Arab University in Beirut. After completing his degree, he began work at the MFA, where he served as Director of Arab World Department (1982-1985),Ambassador to the UN and non-resident Ambassador to Canada (1986-1987) where he also acted as UAE's representative to the UNSC, Ambassador to Washington (1992-1999). He was then appointed as UAE Permanent Representative to the UN office in Geneva. In recent years, he has been serving as chairman of the Arabian Marine Industry Association and president of Gulf Craft, an Ajman-based company that manufactures boats and luxury yachts. He was born in 1950. ABU DHABI 00000453 005 OF 006 Minister of Social Affairs -------------- Mariam Mohammed Khalfan al-Roumi will be responsible for a new ministry charged with finding solutions to social problems and developing social security and social organizations. Al-Roumi was born in 1957 and holds a BA in English Literature from the UAE University. She has held many positions in the educational, academic, and social fields. She was on the board of directors for Dubai Health Care City. She has been serving as under secretary for the Ministry of Labor and Social Affairs since 1999. Minister of Education -------------- Dr. Hanif Hassan holds a BA in Islamic studies from the UAE University and a master's degree in Islamic Shari'a. In 1991 he earned a PhD from Umm al-Qura in Saudi Arabia and since September 2005 has been a member and Director General of the Abu Dhabi Education Council. He has served as Vice Chancellor of the all-women's college, Zayed University, and Chairman of the Committee for Degree Equivalency at the Ministry of Higher Education. He is a member of the board of trustees of the al-Maktoum Foundation, and a member of the UAE Emiratization Council. Minister of State for Federal National Council Affairs -------------- -------------- Dr. Anwar Mohammed Gargash will oversee implementation of steps leading toward the first limited election of FNC members in UAE history. President Khalifa announced in December 2005 that the UAE would hold indirect elections for half the FNC membership and continue to appoint the other half (ref B). Election details will be announced in the coming weeks. A good contact of the Embassy and Consulate General, he is very thoughtful and a strong believer in democratization and reform. He is very proud of his Persian heritage. Gargash was professor of political science at UAE University until 1995. He is a member of the Dubai Economic Council and a board member of Emirates Media Group. He has a BA in political science from George Washington University and a master,s degree and PhD from Cambridge University. Minister of Health -------------- Humaid Mohammed Obaid al-Qutami replaces Hamad al-Midfa. He was born in 1959 and holds a master's degree from Western Michigan University. He had held many positions, among them director general of the Emirates Institute for Banking and Financial Studies. He has played a role in the nationalization strategy of the UAE, and is a founder of the Accountants and Auditors Association, the Consumer Protection Society, and the Human Rights Society in the UAE. Minister of Environment and Water -------------- Dr. Mohammed Saeed al-Kindi will take over a Ministry that replaces the Ministry of Agriculture and Fisheries. Al-Kindi has a BA and master's degree in political science, and a PhD in public administration from the University of California. He joined the MFA in 1984 and was a member of the UAE,s permanent delegation to the UN from 1986 to 1995. Between 1995 and 1997 he was charge d'affaires in the UAE Embassy in Indonesia. He is a member of the consultative committee of the GCC's Supreme Council and has worked as the director of the office of the Ruler of Fujairah. He was born in 1955. Minister of Culture, Youth and Community Development -------------- -------------- Abdul Rahman Mohammed al-Owais graduated from the UAE University in 1989 with degrees in accounting and IT. Since 2001 he has been a member of the board of Emirates Media Corp. He is a member of the Sharjah Chamber of Commerce and Industry and a member of the Emirates Property Bank. He was born in Sharjah in 1967. Comment: ABU DHABI 00000453 006 OF 006 -------------- ¶5. (C) This reshuffle, the second in 16 months (ref C), strengthens the al-Nahyans' firm grip on the UAEG while also introducing several dynamic technocrats and MbR confidants from Dubai and the Northern Emirates, offering a real chance to improve the functioning of the UAE's loose federal system. Until now, UAEG Ministers have largely taken their marching orders from the UAE President in Abu Dhabi (who of course consulted broadly with other rulers and with his own family members). We will watch to see if there is a shift to a bipolar system, in which the Cabinet reports ultimately to the President but is managed by a strong Prime Minister. If that were to happen, it would require a good deal of adjustment for all involved. Over time it would be a positive change, one that might encourages rule by institutions rather than personality, and which leads to greater transparency and accountability. The appointment of AbZ as foreign minister, while not a surprise, is an excellent development for the USG. AbZ has already established strong contacts in our government and is fluent in English, something his older brother HbZ is not. AbZ's new role as Foreign Minister frees up Hamdan to devote his time to domestic issues, including inter-emirate relations, and further improvements to federal institutions. The appointment of Mariam al-Roumi is a further positive development in the UAE,s stated commitment to empower women. SISON