KING LAUNCHES ECONOMIC AND EDUCATION INITIATIVES

C O N F I D E N T I A L RIYADH 005114

SIPDIS

SIPDIS

DEPT FOR NEA/ARPI(BSHUKAN),DRL, DRL/IRF

E.O. 12958: DECL: 06/26/2016
TAGS: ECON PGOV PREL PHUM KIRF SA
SUBJECT: KING LAUNCHES ECONOMIC AND EDUCATION INITIATIVES
DURING FIRST NATIONAL TOUR

REF: A) RIYADH 4724 B) 05JEDDAH 5021 C) RIYADH 5084

Classified By: Deputy Chief of Mission Michael Gfoeller for
reasons 1.4 (b) and (d).


1. (C) Summary: King Abdullah recently completed his first
national tour since becoming King. Traveling with his
Cabinet, the King visited the Ha'il, Al Qassim, Medina and
Eastern provinces promoting government support for economic,
industrial, health and educational development of the regions
and the welfare of their people. The King launched numerous
economic development initiatives, inaugurated the first
university in the northern region, granted prisoners amnesty,
and redistributed government land for public housing. He also
gave speeches promoting tolerance and acceptance of all
Muslims. In recent discussions with visiting USG officials,
the King expressed satisfaction with the reception accorded
him during his tour of the Kingdom (septel). End Summary

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First Trip to Eastern Province
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2. (U) King Abdullah recently completed a six-leg national
tour of the Kingdom visiting the Ha'il, Al Qassim, Medina and
Eastern provinces. It is his first national tour since
becoming King in August 2005. The King began his tour in the
Eastern Province, traveling to the cities of Jubail, Al-Ahsa,
Qatif, and Al-Khobar (ref A). During his visit to the
industrial city of Jubail, King Abdullah announced the first
phase of Jubail-II, a project that is expected to create
55,000 jobs and generate investment projects worth USD58.7
billion. Designated a new industrial city by the SAG in
1975, Jubail has experienced significant economic expansion,
and consists largely of petrochemical and iron works. It
also is the home port of the Royal Saudi Navy. The
centerpiece of Jubail expansion will be a new USD1.4 billion
oil export refinery, a joint venture between Saudi ARAMCO and
the French firm Total, that will produce 400,000 bld of
refined products. The King also inaugurated 20 new
industrial projects valued at USD21.9 billion. The SAG
expects these new projects will attract significant foreign
investment interest.

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King Grants Prisoners Amnesty
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3. (U) While in the Eastern Province, the King issued a
royal decree granting amnesty to prisoners, including
expatriates, who had committed minor crimes and had served
their jail terms and/or paid fines, but were still
incarcerated because they are unable to pay the debt or blood
money to the families of their victims. The decree excluded
prisoners who have committed more egregious crimes. Saudi
news reports stated that many expatriates remain in jail
despite having served their sentences or paid a fine, because
their iqamas (residence permits) have expired, and their
sponsors do not want them to renew them. The decree is
expected to grant amnesty to nearly 4,000 prisoners.

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King Launches Educational Initiatives in Al-Ahsa
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4. (U) In Al-Ahsa, the King launched a number of
educational initiatives including four technical colleges, 17
vocational training institutes for boys, and two higher
technical institutes for girls. The projects will cost an
estimated USD320 million. He also approved establishing a
literary club and instructed that funds be allocated to build
its headquarters.

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King Designates Ha'il as Second Mega Economic City
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5. (U) The King next traveled to the northern region of
Ha'il where he laid the foundation stone for the new Ha'il
University, in addition to launching new water, health and
infrastructure projects worth more than USD534 million. The
new university, which will cost USD172 million, will include
colleges of engineering, computer science, medicine, science
and community, as well as a university hospital, and brings
the total number of government universities to 17 in the
Kingdom. The King also announced the construction of the
Ha'il-Medina Expressway and the 340 kilometer long Ha'il-Al
Jawf Expressway, which will connect Ha'il and the capital of

the Al Jawf province in the northern part of the Kingdom.


6. (U) He also unveiled plans for the establishment of a
USD8 billion mega economic city in Ha'il, which will host
agricultural and mineral industries as well as house an
education zone and 30,000 residential units. The Prince Abdul
Aziz bin Musaed Economic City, named after the first governor
of Ha'il, will include an airport, railway service and a dry
dock. It is expected to create 30,000 jobs over the next ten
years, and is the second of such cities planned by the Saudi
Arabian General Investment Authority (SAGIA). The first, the
King Abdullah City located in Rabigh 200 kilometers north of
Jeddah, was announced in December, and, according to Saudi
news reports, is expected to attract USD26.6 billion in
investment (ref B). As with the King Abdullah City, the SAG
is looking to private investors for the bulk of the funding
for their mega city with the Saudi government funding only
"common access" components of the projects - constructing
highways, expanded sewage and water infrastructure, and
limited electricity facilities. Most of the investment for
the King Abdullah City is coming from UAE real estate
developers and investment firms. The King also announced his
intention to redistribute land belonging to the Ministry of
Defense and Aviation for housing units for 15,000 families.
The residential area will include 80 schools, 100 mosques,
and a number of commercial centers.

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King Warns Against Labeling Others
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7. (U) Continuing to promote the themes of regional
development and national unity, the King next traveled to the
Qassim region in the central part of the Kingdom, where he
launched a series of economic and educational projects valued
at over USD1.4 billion, including the second phase of the
USD320 million Qassim University project which will construct
buildings to house a number of the university's colleges, a
conference center, a 400-bed university hospital, housing for
teachers and sport facilities. Additionally, the King
announced plans for 324 education projects valued at USD427
million.


8. (C) The King also delivered a speech on tolerance to
70,000 people in the sports stadium in the capital Buraidah.
King Abdullah warned Saudis against creating division in the
country by labeling others as secularists, liberals,
extremists, Islamists, or hypocrites, saying such
classifications were against the teachings of Islam and would
weaken the country's unity. During a recent USG delegation
visit, the King told our visitors that he "had gone into the
lion's den", referring to Qassim's reputation as a hotbed of
religious conservatism, but was "surprised how well his
message was received." (septel)

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King Designates Medina as Third Mega Economic City
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9. (U) Concluding his tour in Medina, the King announced
another round of projects valued at USD2.4 billion, including
the expansion of the Prophet's Mosque, the second holiest
mosque in Islam, to accommodate 270,000 additional
worshippers and construction of three new hospitals and a new
university campus. He also designated Medina as the third
mega economic city, stating that the USD6.7 billion project
will generate 20,000 new jobs and attract significant
investment, as well as host 4,000 stores and 30,000
residential units that will house 200,000 inhabitants. To
accommodate increasing business traffic and numbers of
pilgrims, the King ordered that the Medina Airport be
upgraded to an international airport. Commenting on the
King's decision to upgrade the airport in the Saudi press,
the Crown Prince stated that Medina International Airport
would reduce the pressure on Jeddah's King Abdul Aziz
International Airport, which is the main gateway for pilgrims
traveling to the Kingdom for Hajj and Umrah.

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King Increases SAGIA's Powers
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10. (U) During his tour, the King presented a seven-point
economic strategic plan that promotes "better investment of
the Kingdom's resources and using its returns for the
betterment of the nation and its people." The plan also
increases the scope of SAGIA's authority to supervise
economic cities and set out state policies for developing

domestic and foreign investment (ref C).

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Comment
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11. (C) The King's national tour was a landmark event and
the first such regal progress made by a Saudi ruler in many
years. The King brought major development projects with him
to every location he visited. While maintaining the state's
traditional role as infrastructure developer, the King also
emphasized the role of the private sector in economic growth.
In all his speeches, King Abdullah repeatedly called for
religious tolerance to ensure national unity. Additionally,
the focus of educational initiatives introduced by the King
was on vocational training as opposed to religious education.



12. (C) The King recently told a visting USG delegation that
he was pleased with the reception and level of public support
he received during his trip (septel). He appears to have
succeeded in getting across his messages that new oil
revenues will be generously distributed kingdom-wide, and
that attacks on fellow Muslims weaken the nation. The tour
enhanced King Abdullah's already considerable popularity.
End Comment.
OBERWETTER