INTERNATIONAL COMPACT FOR IRAQ -- NO UAE DEBT

C O N F I D E N T I A L ABU DHABI 000718 SIPDIS C O R R E C T E D C O P Y - EDITED SUBJECT LINE SIPDIS DEPT FOR NEA/ARP, NEA/I, EEB/IFD/ODF TREASURY FOR DEP SEC KIMMITT AND DAS SAEED E.O. 12958: DECL: 05/01/2017 TAGS: EAID EFIN ECON PREL IZ AE SUBJECT: INTERNATIONAL COMPACT FOR IRAQ -- NO UAE DEBT RELIEF ANNOUNCEMENT Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d). ¶1. (C) Summary: The UAE will be represented by Minister for Governmental Sector Development Sultan Al-Mansouri at the ICI signing ceremony. He will not have authorization to make any public commitment to Iraqi debt relief. However, the UAE is not asking Iraq to service its debt, nor is interest accruing. Arab Monetary Fund Director General Jassim Al-Mannai will attend the ICI signing ceremony. End Summary. ¶2. (C) Post has continued our strong efforts to persuade the UAEG to send a cabinet level representative to the Sharm El-Sheikh ICI signing ceremony and to reaffirm its decision to forgive Iraqi debt. The UAE's position on Iraq, however, has hardened visibly, with an impact on ICI attendance and on debt forgiveness. The UAE's representative to the ICI signing ceremony will not be MinState Finance Dr. Mohammed Khalfan bin Kharbash, as we were previously informed by the UAEG, but Sultan bin Saeed Al-Mansouri, the Minister of Governmental Sector Development. Al-Mansouri will not have a mandate to discuss debt relief, Foreign Minister Abdullah bin Zayed (AbZ) told Ambassador on April 30. ¶3. (C) AbZ added that that the UAE supported the goals articulated at the September 2006 Abu Dhabi-hosted ICI preparatory event. However, no instructions had been issued regarding debt forgiveness, and there would be no announcement in Sharm Al-Sheikh. He reiterated that the UAE was not asking Iraq to repay the debt and that there was no interest accruing. Ambassador reminded AbZ that he had told her less than two weeks ago that the UAE was ready to meet its debt relief commitment. Abdullah asked rhetorically: "Why should we give Al-Maliki the chance to claim credit for this?" Ambassador responded that debt forgiveness was critical in order to improve Iraq,s credit-worthiness. A public statement on debt write-off would help Iraq access the markets to fund reconstruction efforts. AbZ stated that the UAEG would not be making a statement in Sharm al Sheikh. ¶4. (SBU) Arab Monetary Fund Director General Jassim Al-Mannai will attend the ICI signing ceremony. He will be accompanied by Dr. Mustapha Kara, Director of the Economic and Technical Department. ¶5. (C) Post provides the following biographical data on Al-Mansouri: --(U) Significance: Sultan bin Saeed Al-Mansouri is the Minister of Governmental Sector Development. --(C) Politics: Al-Mansouri appears to be an ally of Minister of State for Financial and Industrial Affairs, Dr. Mohammed Khalfan bin Kharbash. His ministry also covers civil aviation. As a prominent Dubai businessman, he took an active and keen interest in the U.S./UAE FTA negotiations. --(U) Career and Education: Al-Mansouri is chairman of the Dubai Islamic Insurance and Reinsurance Company(AMAN) and a Vice-Chairman of Dubai Islamic Bank. Since 1998, he has been a managing partner of Al-Nabooda Group, the family business of the Dubai-based merchant family, Al-Nabooda, which is involved in contracting, travel, car dealerships, and other ventures. He is a member of the Dubai Economic Affairs Council, an advisory body of prominent businessmen and government officials which makes recommendations about economic and business policies to the Dubai government. He previously served as deputy chairman of the Dubai Chamber of Commerce and Industry from 1994 to 1996 and helped set up Dubai Cargo Village at the Dubai Airport. Al-Mansouri is an Arizona State graduate. SISON