CG'S DISCUSSION WITH ALIREZA BUSINESSMEN

C O N F I D E N T I A L SECTION 01 OF 02 JEDDAH 000227 SIPDIS SIPDIS RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARPI; PARIS FOR ZEYA; LONDON FOR TSOU E.O. 12958: DECL: 03/13/2015 TAGS: KISL KWMN PREL SA SUBJECT: CG'S DISCUSSION WITH ALIREZA BUSINESSMEN REF: A. 05 JEDDAH 3997 B. JEDDAH 128 Classified By: Consul General Tatiana Gfoeller, for reasons 1.4 (b) and (d). ¶1. (C) On March 13, Consul General and Pol/Econ Chief met at Xenel Industries with Executive Director Sheikh Khaled Alireza, his son and Managing Director, Aamer and General Manager and American citizen David Joury. Khaled Alireza told CG that Xenel is producing a television public service announcement condemning extremism and terrorism. Alireza also described Xenel Industries efforts to promote women-owned small businesses and women artisans. Xenel is preparing to issue a company sexual harassment policy. XENEL INDUSTRIES AND THE ALIREZA FAMILY ¶2. (C) On March 13, Consul General and Pol/Econ Chief visited the headquarters of Xenel Industries. Xenel is the corporate successor of one of the oldest trading houses in the Middle East. The Alireza's are unusual among Arab merchant families because of their Iranian origin. The family became established in Jeddah in the mid-19th century when Xenel Alireza formed a trading company in Jeddah. Through successful ventures and partnerships the company prospered and incorporated as Xenel Industries in 1973. Today, the corporation consists of a number of companies operating in Saudi Arabia, Pakistan, Singapore, and the United States. Its businesses include radar systems, air traffic control installations, cable networking systems, import and export of bulk materials, health care, electrical power generation, construction, oil and gas exploration, and real estate development. They are major partners in the King Abdullah Economic City (KAEC) project. Marwan Alireza manages the U.S. based sister-company. Mohammed Alireza is the Chairman. Another member of the family, Abdullah Zainal Alireza is Minister of State and a senior adviser to King Abdullah. The family is linked by marriage to the Zahid and Bin Laden Families. Many of the family were educated in the United States, including no less than 14 who attended the University of California, Berkeley. XENAL'S PUBLICITY CAMPAIGN CONDEMNING TERRORISM ¶3. (C) Alireza informed the CG that Xenel is producing a public service announcement condemning terrorism and religious extremism that will be televised in coming weeks. Immediately after the terrorist attacks in 2001, Xenel was the first Saudi company to place announcements in newspapers denouncing the attacks. Alireza believes that in controversial times, it is important to repeat the message against extremism. They hope that this television message will have wider reach. XENEL INSTRUCTS ALL EMPLOYEES IN PROPER BEHAVIOR BETWEEN SEXES ¶4. (C) In other portions of the conversation relating to women and economic development, Alireza described some of the activities Xenel sponsors to prepare and support women in business. He reminisced that at one time, Xenel employed more than 12,000 women in its health care and medical facilities until it was forced to dismiss them, because religious authorities objected to the interaction of the sexes. However, Xenel once again employs a substantial number of women in its administrative operations. The CG was introduced to a number of them, who are employed in the headquarters building. Unlike many large businesses employing women, Xenel does not segregate women from men. General Manager David Joury informed the CG that this week Xenel would release a written company-wide policy covering sexual harassment. This is apparently a first for a Saudi company and a very important step in smoothing work-place relationships between the sexes. As noted in earlier cables (reftels) and media reports, since men and women are separated from childhood, the sexes simply do not know how to deal with each other. XENEL PROMOTING WOMEN'S BUSINESSES ¶5. (C) The Alirezas continued by describing some of their efforts to foster women owned Small and Medium-Sized Businesses (SME's) outside the company. Khaled Alireza observed it was important, not only for the Saudi economy, JEDDAH 00000227 002 OF 002 but for his company to encourage the development of small businesses. It is from these SME's that his company hires experienced, capable employees, thus furthering Saudization. Xenel provides seed-money and financing to groups and individuals, including women, who present an attractive business idea. Alireza stressed that the company makes a particular effort to encourage women artisans to start businesses. He also cited the example of a women university-graduate whom they sent to England for business training. This woman now runs a prosperous public relations firm in Jeddah. Gfoeller