UAE PRESIDENT KHALIFA GIVES RARE INTERVIEW -- MINIMIZES UAE

UNCLAS ABU DHABI 000761

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV KDEM AE
SUBJECT: UAE PRESIDENT KHALIFA GIVES RARE INTERVIEW -- MINIMIZES UAE
SECURITY THREAT


1. (SBU) SUMMARY. President Sheikh Khalifa bin Zayed Al Nahyan, who
rarely addresses the press, gave an interview with Lebanese
newspaper Al Nahar June 28, touching on UAE security, Lebanon, UAE
policy toward Iran, sovereign wealth funds, Arab labor in the UAE,
nuclear cooperation, and the proposed new UAE embassy in Iraq. All
UAE papers emphasized Khalifa's refutation of recent U.S. and U.K.
security cautions. End summary.


2. (SBU) REFUTING SECURITY WARNINGS. In an interview published June
28 in the Lebanese "Al Nahar" newspaper, President Khalifa said the
UAE is safe and secure: not only because of effective security
measures, but also due to a high standard of living for residents of
the UAE. He said warnings circulated by "some foreign diplomatic
missions in the UAE" reflect the custom of reacting to "any piece of
information or rumor that reaches them, regardless of its validity."
(Comment: The President was clearly referring to the security
warnings from the U.S. and U.K. missions issued in mid-June. The
following day, local papers published testimonies of local experts
who explained that the embassies were "crying wolf." One paper even
reported that the U.K. based its warning solely on a conversation
overheard from two drunk men talking about a hypothetical terror
attack. Such reporting may be part of a coordinated campaign to
discredit the security warnings. End comment.) The headlines of
all four English-language newspapers June 29 focused on Khalifa's
minimizing security concerns: e.g. "Terror warnings 'normal practice
to deal with rumors'" and "UAE is secure and stable: Khalifa."


3. (U) LEBANON. Khalifa welcomed the new Lebanese president to
visit the UAE and expressed his own desire to visit Lebanon to
congratulate the new leader. Khalifa praised the Emir of Qatar for
his mediation in the Doha agreement. He said the UAE never ceased
support to Lebanon, not only out of self-interest but in performing
its responsibility as an Arab sister country. When asked if the UAE
encourages private sector investment in Lebanon, Khalifa said the
government does not influence choices of the private sector, and
that the main factor in investment is security and stability -- when
these factors are present, Arab and foreign countries will be ready
to invest.


4. (SBU) SOVEREIGN WEALTH FUNDS. When asked about Abu Dhabi's
sovereign wealth funds -- estimated at over US$800 billion --
Khalifa said the total value of the fund was exaggerated. Regarding
the establishment of new funds to help Arab countries, Khalifa said
there are already national and regional funds worth billions of
dollars throughout the Middle East, and that investment depends on
political and administrative improvement in recipient countries.


5. (SBU) IRAN. Regarding Iran's potential nuclear weapons program,
Khalifa said the UAE is concerned about nuclear weapons in the
region; however, it is the right of all states to use nuclear power
for peaceful purposes. (Comment: While noting concerns about Iran's
nuclear ambitions, the UAE is planning an internationally supported
peaceful nuclear energy program with careful mechanisms to avoid
allegations of proliferation. End comment.) When asked how the UAE
would respond if Iran were to use UAE banking channels in violation
of financial sanctions, Khalifa said the UAE will cooperate with
international rulings, as the UAE did in the case of Saddam
Hussein.


6. (U) ARAB LABOR. Khalifa denied any policy to exclude Arab labor
from the UAE, explaining that foreign (non-Arab) labor is cheaper
and therefore more utilized at present. Khalifa noted that many
managers and skilled workers in the UAE are Arab, and hoped the
growing economy would provide more jobs for them in the future.


7. (SBU) UAE EMBASSY IN IRAQ. The press also noted Khalifa's
comments on Iraq. Acknowledging the UAE's decision to reopen an
embassy in Baghdad, Khalifa noted that the UAE's relationship with
Iraq "never stopped" even when the embassy was closed, and urged
greater Arab involvement in Iraq to "undermine efforts to isolate
Iraq from its Arab neighbors" (a clear reference to countering
Iranian influence).


8. (SBU) Comment. The rationale for granting this interview is not
clear, as it is fairly rare for Khalifa to speak directly (and at
length) with the press. If chosen headlines are any indication, one
impetus may have been the opportunity to assuage security concerns
in light of the U.S. and U.K. warnings. End comment.

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