KUWAIT-HOSTED IRAQ RECONSTRUCTION EXPO AN

UNCLAS KUWAIT 001603 SIPDIS SENSITIVE SIPDIS FOR NEA/ARP E.O. 12958: N/A TAGS: EINV ETRD KU IZ SUBJECT: KUWAIT-HOSTED IRAQ RECONSTRUCTION EXPO AN UNDERWHELMING EVENT ¶1. (SBU) Under the patronage of Crown Prince Shaykh Nawaf Al-Ahmad Al-Jaber Al Sabah, the Kuwait International Fair hosted the second International Trade Exhibition for the Reconstruction of Iraq from 4-7 November. In addition to a number of European and African ambassadors (but no Arab Chiefs of Mission from what we could tell),CDA and A/DCM attended the opening of the event along with Kuwaiti Minister of Commerce and Industry Falah Al-Hajeri and Iraqi Minister of Construction and Housing Bayan Dazee, who wandered the exhibition floor trailed by a crew of journalists, staffers, and assorted hangers-on. Al-Hajeri said, "I hope the exhibition will bring positive results, especially through side meetings between representatives from the Iraqi Chamber of Commerce and Kuwaiti firms to agree on ways to cooperate to rebuild Iraq." He added, "The strategic position of Kuwait makes it the closest gateway into Iraq. Kuwait supports Iraq through the Kuwaiti companies which will contribute to the reconstruction of Iraq soon." For her part, Dazee said, "Political stability and security were issues before, but now the situation in Iraq is improving. Our goal from such exhibitions is to get Arab and foreign companies to contribute to rebuilding the infrastructure of Iraq, and I encourage all companies to enter the Iraqi market and help us to rebuild it." ¶2. (SBU) About 75 companies operated booths at the expo, including about 40 Kuwaiti companies, 9 Iranian companies, 7 Romanian companies, and other companies from Europe, the Gulf, and Australia. The products and services represented included logistics services, industrial supplies, personal protective equipment, generators, construction materials, and commodes. Prospective customer traffic through the expo seemed light both at the opening and during a follow-on visit by Econoff on day two of the event. In an informal poll of a small sample of the booths, Kuwaiti and European sales representatives told Econoff that despite local press announcements and flyers promoting the event, attendance had been disappointing and few potential sales contacts had been made. A sales rep from a Kuwaiti lube oil company told Econoff, "When most Kuwaitis hear the word Iraq they still think of a danger rather than a business opportunity." ********************************************* * For more reporting from Embassy Kuwait, visit: http://www.state.sgov.gov/p/nea/kuwait/?cable s Visit Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ********************************************* * MISENHEIMER