Identifier
Created
Classification
Origin
06JEDDAH384
2006-05-23 12:55:00
UNCLASSIFIED
Consulate Jeddah
Cable title:  

TABUK SAUDI ARABIA: NORTHERN CHAMBER OF COMMERCE

Tags:  BTIO EAGR ECON EIND KISL PREL SA SCUL SENV 
pdf how-to read a cable
VZCZCXRO4395
PP RUEHDE
DE RUEHJI #0384/01 1431255
ZNR UUUUU ZZH
P 231255Z MAY 06 ZDK
FM AMCONSUL JEDDAH
TO RUEHC/SECSTATE WASHDC PRIORITY 9189
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 1396
RUEHFR/AMEMBASSY PARIS PRIORITY 1474
RUEHRH/AMEMBASSY RIYADH PRIORITY 6521
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY
UNCLAS SECTION 01 OF 03 JEDDAH 000384 

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP;
PARIS FOR ZEYA; LONDON FOR TSOU

E.O. 12958: N/A
TAGS: BTIO EAGR ECON EIND KISL PREL SA SCUL SENV
SUBJECT: TABUK SAUDI ARABIA: NORTHERN CHAMBER OF COMMERCE
EAGER TO PROMOTE TRADE AND DEVELOPMENT

REF: JEDDAH 221

JEDDAH 00000384 001.2 OF 003


UNCLAS SECTION 01 OF 03 JEDDAH 000384

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP;
PARIS FOR ZEYA; LONDON FOR TSOU

E.O. 12958: N/A
TAGS: BTIO EAGR ECON EIND KISL PREL SA SCUL SENV
SUBJECT: TABUK SAUDI ARABIA: NORTHERN CHAMBER OF COMMERCE
EAGER TO PROMOTE TRADE AND DEVELOPMENT

REF: JEDDAH 221

JEDDAH 00000384 001.2 OF 003



1. SUMMARY: On May 16, the CG and Pol/Econ Chief met with
the Board of Directors of the Tabuk Chamber of Commerce and
Industry and the Manager of the Supreme Commission for
Tourism (SCT). The Board enthusiastically promoted the
agricultural and industrial developments in the region and
expressed a desire to improve economic links with the United
States. The CG promised to assist in promoting economic
relations and recommended the Board establish a liaison with
the FCS Section in the Consulate General. The SCT
representative presented a detailed and well-reasoned plan
for promoting non-Muslim tourism in the region without
offending conservative sensibilities. The Board conveyed its
belief that the violent image of Saudi Arabia was not
justified and impaired economic relations. The CG explained
the practical basis for the Travel Warning, but also noted
that business could be pursued while observing reasonable
security precautions. The Board offered an ambiguous
assessment of the status of water resources in the region.
Observation suggested that means of transportation in the
area are limited.

TABUK CHAMBER OF COMMERCE AND INDUSTRY


2. On May 16, CG and Pol/Econ Chief met with the Chairman
and Board of Directors of the Tabuk Chamber of Commerce and
Industry in their Headquarters building in the city of Tabuk.
The discussion was led by Chairman Mohammed H. Al-Balawi,
Vice Chairman Hassan Ibn Homoud Mohamed Al-Shehri and Board
Member Jamal Al-Fakhri. About 15 other members of the Board
of the Chamber were present. Also in attendance was Fouad M.
Alghorayed, Executive Director of the Tabuk office of the
Supreme Commission for Tourism (SCT). The members of the
Chamber all exhibited pride in the economic progress their

region is making and a desire to promote greater development
with external partners. The Chamber expressed their great
pleasure at hosting a meeting with the CG. On her departure,
they presented the CG with a statement, an informal
translation of which follows:

To: U.S. Consul General in Saudi Arabia

Asalam Alaeikom,

On behalf of the members of Tabuk Chamber of Commerce, I
thank you for visiting us in Tabuk Region. Your honorable
visit will definitely flourish the bilateral relations
between our two countries. Saudi Arabia has always
maintained a clear policy towards stability and world peace.
The Saudi American relations go back to the late King
Abdulaziz and President Roosevelt in 1945.

Ever since that date, the Kingdom has worked hard to develop
its status as a solid industrial base. This industrial
development is witnessed by everyone. The Kingdom is
currently exporting its petrochemicals to 139 nations.

Finally, I would like to thank you for your visit and hope
that you will honor us with another visit soon.

End translation.

AGRICULTURE IN TABUK


3. With obvious pride, the members of the Chamber described
the economy of the region. Agriculture takes the preeminent
place. Tabuk is considered the breadbasket of the Kingdom,
being the center of wheat production. The Chamber members
spoke with special satisfaction about the cut flower
greenhouses that yearly produce more than 50 million blooms
for local, regional, and international flower markets. The
Chamber participants related that the complex, modern
irrigation and farming system in the region had been planned
with the aid of American universities and consultants. They
particularly emphasized the contribution made by the
University of Nebraska, with which they still maintain close
ties, as well as with other colleges and consultants in the
United States. Much of the irrigation and agricultural
equipment used in the region was supplied by American
manufacturers.


JEDDAH 00000384 002 OF 003


WATER PRIMARILY FROM AQUIFERS


4. Virtually all of the water for domestic, agricultural,
and industrial use comes from the large aquifer underlying
the region and extending into southern Jordan. In response
to the CG's queries about surveys to gauge the depletion rate
of the aquifer, the Chamber members responded with
contradictory statements. One replied that there was ample
water for far into the future, another said there had not
been a comprehensive survey, a third stated that there had
been no discernible drop in the water table. What they did
agree on when the question was raised about cooperation with
Jordan, which also has a claim on this vital resource, was a
shared, mild scorn for Jordanian operations. They insisted
that their operations were designed scientifically to use the
water efficiently and implied that there were controls to
prevent wasteful use of water in the region. In contrast,
they complained that the Jordanians were shipping the water
north to their cities and other agricultural areas, rather
than using it around its natural source.

INDUSTRY IN TABUK


5. The Chamber members aggressively promoted their
industrial accomplishments, describing a substantial and
growing industrial sector. Much of it is based on the local
natural and mineral resources. The region supports
substantial brick-making and cement factories. It also
produces the raw-materials for glass, and then ships these
constituents to factories elsewhere. There also exist
relatively new, but growing industries in pharmaceuticals,
fertilizer, and plastics. Despite the disdain voiced by the
Chamber for Jordan transferring water out of the region, one
Board member volunteered that his business bottles water and
ships it throughout the kingdom and beyond.

INFRASTRUCTURE


6. Although the region exports a significant variety of
products to other areas of the kingdom and abroad,
transportation infrastructure will be a major obstacle to
growth. There is no rail service to the region. Products
produced near the coast may be sent by sea, but access to the
few small ports from inland is not easy. Consequently,
virtually all goods, even the heaviest such as cement and
bricks, must be transported by truck. The road network is
not extensive. Only a skeleton of roads twists through the
mountains and wadis to connect the population centers with
the coast and the rest of the Kingdom. The remarkable
exception is the flower market. Being a high-value,
time-sensitive product, flowers can economically be shipped
by air to neighboring countries and Europe.

TOURISM AN ATTRACTIVE MARKET


7. Like his colleague in Jeddah, Fouad M. Alghorayed, the
local manager of the SCT, has extensive plans to promote
tourism in the Tabuk region. The Chamber of Commerce fully
supports this effort. Their plans parallel those described
to Pol/Econ Chief by the SCT in Jeddah (reftel). Tabuk
possesses over 700 km of seacoast offering many potential
sites for diving and other forms of recreation.


8. There are many ancient and historical sites in the
region. Tabuk occupies the heart of the ancient Nabatean
civilization that extended from the world-renowned city of
Petra in Jordan to spectacular, but less well-known Midian
Salah located just south of the border of Tabuk Governate.
Previously averse to even acknowledging a pre-Islamic
existence, the new tourism and development officials now seem
to recognize the attraction of ancient civilizations and
display a determination to profit from them. There are
potential attractions from other eras as well. Remnants of
the celebrated Hejaz Railway, destroyed by the Arab Revolt
during World War I may be seen in many places, including the
very center of Tabuk, and Ottoman-era forts and watchtowers
dot the landscape along the historic caravan and pilgrimage
routes. The landscape itself is also an attraction, stark
mountains and precipitous ravines are interspersed with vast
tracts of desert and volcanic debris. Although forbidding,
it is also impressive, even majestic scenery, and there are
few places in the world where a person can more truly be

JEDDAH 00000384 003.4 OF 003


alone with nature.

FOREIGN TOURISTS WILL BE WELCOMED


9. The primary target market is domestic and religious
travelers, but, like his colleague in Jeddah, Alghorayed also
wants to exploit the non-Muslim market. Again he was
enthusiastically supported by the Board of the Chamber. The
SCT director said that he expected that within the week the
government would announce that it would issue Tourist Visas.


10. Acknowledging that the Tabuk Region is more conservative
socially than Jeddah, the group has given considerable
practical thought to fashioning plans that will allow
tourists to enjoy the attractions of the region without
unduly upsetting conservative elements in society.
Initially, at least, independent tourism will be kept to a
minimum. They envision tourists coming into the kingdom
being met by trained guides and shepherded to tourist resorts
that will maintain a freer environment than prevails in Saudi
communities. Demonstrating their pragmatic approach, they
intend to focus on the Gulf of Aqaba and the Red Sea coast,
where they can promote diving and maritime recreation and
house tourists in facilities relatively isolated from the
local population. The Gulf of Aqaba will be the first target
for tourist development. They foresee the Saudi coast of the
Gulf being integrated into tours coming from resorts in
Sinai, Israel and Jordan. They are even exploring the
possibility of bringing tourists from the Egyptian resorts
directly by sea to resorts on the Saudi side of the Gulf
without requiring visas for Saudi Arabia.

AMERICAN DEVELOPMENT ASSISTANCE DESIRED


11. In order to implement this scheme, the SCT and Chambr
said they wanted to contact American consultans and
organizations involved in tourism developmet and managemnt.
The CG recommended that they ontact the Consulate
Commercial attach, who has eceived a similar request from
SCT's Jeddah manaer. The Board members all expressed a
desire to expand trade and development with the United States.

SECURITY AND AMERICAN BUSINESS


12. In connection with the prospect for increasing travel
and trade, they expressed grave concern about the image of
Saudi Arabia in the United States and the role of the
Department's Travel Warning in shaping that image. They
strenuously argued that one is much safer in Saudi Arabia
then in virtually any major American city. They asked that
the Consulate modify its Travel Warning, recommend expatriate
families return to the Kingdom, and encourage American
business-people to come to the Kingdom.


13. The CG explained that the Consulate was obligated to
give a reasoned estimate of the danger to American citizens
and the Travel Warning reflected current conditions. The
preceding week's shooting at the Consulate was offered as
evidence that the situation may not yet be fully stabilized.
The CG also explained that although American cities possibly
presented a greater risk of violence, this was a random risk,
whereas the threat to Americans in Saudi Arabia was a
targeted risk. The CG concluded by noting that the warning
did not prohibit Americans from coming to Saudi Arabia.
Pol/Econ Chief amplified the CG's remarks by pointing out
that the Saudi economy is attracting attention in America and
their accession to WTO added to this growing attraction and
many American businesses are exploring ways to develop
business relations with Saudi Arabia.
Gfoeller