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