SALAH AL-ATTAR, KINGPIN OR KING PAWN?

C O N F I D E N T I A L SANAA 001826

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/26/2017
TAGS: ECON EINV PGOV PREL PINR YM
SUBJECT: SALAH AL-ATTAR, KINGPIN OR KING PAWN?

REF: SANAA 01245

Classified By: Ambassador Stephen Seche for reasons 1.4 (b) and (d)


1. (C) SUMMARY: The Ambassador's first meeting with new
General Investment Authority (GIA) Chairman Salah Al-Attar
revealed a western educated, energetic young man eager to
address Yemen's problems by narrowing the rich-poor gap,
thereby reducing the lure of extremism and making Yemen more
attractive to foreign investors. END SUMMARY.

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Son of Yemen, Man of the World
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2. (C) New General Investment Authority (GIA) Chairman Salah
Al-Attar is not well known to the Embassy. The son of Former
Prime Minister Mohammed Saeed Al-Attar, Salah Al-Attar was
born on October 16, 1975. Al-Attar spent most of his life
abroad in Lebanon, the US, Switzerland and the UK. He
received his BS in Political Science and International
relations from New York University in 1996. He has two MBA
degrees: one from the International School of Management in
Paris, France (1997) and one from the University of Sarasota,
Florida (1998). Al-Attar is married and has one son, Ryan.
Al-Attar served previously as the Head of Investment
Promotion at the GIA but left that position for a successful
career abroad in the private sector with multinational
British American Tobacco. He was appointed to his current
post at the GIA in February 2007. Al-Attar's father is a
friend of President Saleh and Al-Attar himself is a friend of
President Saleh's son, BG Ahmed Ali Abdullah Saleh. These
connections may have influenced his appointment.


3. (C) During their initial meeting on September 16, the
Ambassador commended Al-Attar on his decision to return to
Yemen and serve in the government, leaving behind private
sector success and opportunities in the international arena.
Al-Attar said that he believed that it was his duty to return
to Yemen to try to create "networks and opportunities for
business" in Yemen. He cited the influence of his western
education and said that he does not want Yemen to become a
country where conservatism is the "rule of the game."
Al-Attar and the Ambassador agreed on the importance of
narrowing the gap between rich and poor Yemenis and of
limiting the ability of extremism to take root in Yemen and
the region. He told the Ambassador the he hopes to make a
real difference for Yemen in the GIA. Comment: Perhaps in an
effort to highlight his distance from conservatism, when the
Ambassador wished Al-Attar Ramadan Karim (Happy Ramadan)
Al-Attar replied, "Thank you even though I do not fast." End
Comment.

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GIA, One Stop Shop for Investment
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4. (C) The GIA was established in March 1992 by Investment
Law No. 22 in 1991 as the sole competent ROYG authority in
charge of regulating and promoting investment in Yemen,
acting as a "One Stop Shop." All ROYG offices concerned with
investment have offices at the GIA Headquarters building and
are represented on its Board of Directors. Al-Attar
explained to the Ambassador that he reports directly to the
Prime Minister, who chairs the Board of Directors of the GIA.
The Board also includes the Deputy Prime Minister for
Economic Affairs, Minister of Industry and Trade, Minister of
Foreign Affairs, Minister of Oil and Mineral Resources,
Minister of Finance, Governor of the Central Bank of Yemen,
Chairman of the General Federation of Chambers of Commerce,
the Chairman of the GIA and a repertoire from the GIA. The
Board acts to formulate investment policy and approves the
plans, proposed draft laws, and programs formulated by the
GIA.


5. (C) Al-Attar told the Ambassador that he believes that
the ROYG is serious about the need for concrete action to
create economic opportunity in Yemen and understands that
attracting Foreign Direct Investment (FDI) requires reforms
to bring the country's commercial laws in line with
international best practice standards and to open up the
economy. Al-Attar opined that since the tragedy of 9/11,
investors from the GCC and China have been looking for places
outside of the US to invest. He hopes that, with adequate
reform and safeguards in place, Yemen will attract GCC and
Chinese FDI. Al-Attar also said that he would very much like
to see a Bilateral Investment Treaty (BIT) between Yemen and
the US. NOTE: Post will arrange an introductory meeting
between the GIA and USTR to explain to Al-Attar the
requirements and process involved in reaching a BIT. END
NOTE.

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Star Chamber, Yemen Style
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6. (C) During the Ambassador's earlier meeting (reftel) with
BG Ahmed Ali Abdullah Saleh (son of the president),Saleh
suggested that the Ambassador meet Al-Attar in the context of
discussing work that the BG performs as a member of a
recently established committee he called the National
Investment Authority, which Al-Attar chairs. NOTE: Post is
preparing a separate cable on this new committee. END NOTE.
The Ambassador asked Al-Attar about the committee. Al-Attar
called it the "Investment Advisory Council." He told the
Ambassador that President Saleh oversees the Committee and
that they hope to act as a think tank and whistle blower.
The Committee will review the legislative framework and
incentives to attract FDI in Yemen, acting as policy
advocates. Al-Attar said that so far the committee
membership consists of a small number of public sector
people. He said they had discussed including private sector
input, but had ultimately decided that inclusion of
representatives of the private sector on the committee would
reinforce the power of Yemen's perceived private sector
oligarchies. He said that the committee wants to be seen as
transparent. If the private sector was included, the
perception would be that the committee is looking out for the
interests of the private sector members. Ironically,
Al-Attar said that they would like to work "step by step"
with the Embassy Economic Section to shepherd a US company
through a major investment in Yemen to create a US-Yemen
private sector "success story." Comment: Post CommOff and
EconOff are familiar with this "we can protect US business"
rhetoric and will continue to push the message that economic
and trade-related reforms are the best avenue to create the
opportunity for US-Yemen private sector success stories. End
COMMENT.

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COMMENT
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7. (C) Al-Attar is a young, bright and energetic man with
international experience that should serve the ROYG well as
it moves toward greater reforms to attract foreign direct
investment. He seems genuinely excited by and up to the
challenges and opportunities of his new position. He sees
narrowing the gap between rich and poor as a means of
curtailing the lure of extremism and creating greater
stability in Yemen and the region. His candor about the new
committee he chairs is also encouraging. As post continues
to gather information on this new committee, we will pay
particular attention to how such an endeavor may affect the
Mission's goals of encouraging democratic participation,
transparency and representation in the public sector. END
COMMENT
SECHE