FOUR SEASONS INAUGURATION SPEECH PROVIDES POSITIVE

C O N F I D E N T I A L DAMASCUS 001393

SIPDIS

SIPDIS

NEA/ELA
NSC - EABRAMS/MSINGH
TREASURY FOR GLASER/LEBENSON
EB/ESC/TFS FOR SALOOM

E.O. 12958: DECL: 03/27/2016
TAGS: ECON ETRD EINV SY
SUBJECT: FOUR SEASONS INAUGURATION SPEECH PROVIDES POSITIVE
ENDORSEMENT OF ASAD REGIME


Classified By: CDA Stephen Seche, reasons 1.4 b/d


1. (C) During the March 22 inauguration of the $100 million
Four Seasons Hotel in Damascus, primary investor Saudi Prince
al-Walid bin Talal used the occasion to praise Syria as a
"defender of Arabism and Islam," as well as the strength of
the Syrian-Saudi bilateral relationship. Chairman of Western
Union Mazen Tabbaa stated that al-Walid's speech placed Saudi
Arabia's relationship with Syria on par with its relationship
with the United States, and that al-Walid asserted that Syria
should continue to defend Arab dignity in the face of undue
international pressure. Contacts who attended the opening
say that al-Walid, who addressed a select crowd of Syrian
businessmen and investors, provided what they described as a
ringing endorsement of Bashar al-Asad and the path down which
he is leading the country.


2. (C) Syrian and regional press reported widely on the
inauguration, with front-page coverage highlighting
al-Walid's speech, which contacts say was a welcome tonic for
the spirits of businessmen who have felt disheartened over
Syrian economic prospects for the immediate future.
Al-Walid's comments come in the context of an increased
number of Gulf tourists to Syria in the past year, as well as
high levels of Gulf foreign direct investment (reftel).
Several Syrian business contacts interpreted al-Walid's
comments as another sign that Syria is not economically
isolated. Haythem Joud, a prominent Sunni businessman,
stated that al-Walid glowingly endorsed the Syrian economy,
characterizing it as stable and a promising locale in which
to do business. Joud pointed to al-Walid's willingness to
expand his investments to Aleppo and Lattakia as evidence
that al-Walid supports Syria's economic path. Ammar Sabbagh,
who has partnered with a Jordanian company to construct a
four-star hotel complex in Aleppo, told us that al-Walid's
challenge to businessmen to commit to Syria and its future
has encouraged him to begin exploring similar investment
possibilities in Damascus.


3. (SBU) Comment: Whether intentional or not, al-Walid's
optimistic commentary during the Four Seasons inaugural
events has resulted in prominent members of the Syrian
businss community rallying around the Asad regime and Syria's
economic future at a time when many were beginning to
question their long-held belief that Asad was Syria's best
choice for leadership . How long this resurgence of support
lasts in the absence of real economic reform is anybody's
guess, although we suspect the harsh realities of the
marketplace quickly willl trump al-Walid's upbeat assessment.
SECHE