UAE AMBASSADOR: OUR PRESENCE BOOSTS IRAQI

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003530 SIPDIS E.O. 12958: DECL: 11/08/2018 TAGS: PREL PGOV ETRD EINV IZ AE SUBJECT: UAE AMBASSADOR: OUR PRESENCE BOOSTS IRAQI CONFIDENCE Classified By: Ambassador Ryan C. Crocker for reasons 1.4 (b) and (d). ¶1. (C) Summary: The growing presence of Arab Ambassadors in Baghdad is boosting Iraqi confidence that improved security will last and that Iraq's neighbors are committed to its future, according to the UAE Ambassador to Iraq. UAE engagement on the economic front is also expanding, with large Emirati business interests discussing a number of opportunities with Iraqi officials. On the Status of Forces Agreement (SOFA),Ambassador Abdullah Al-Shehhi agreed that Iraq should approve the agreement in order to ensure the continued presence of U.S. forces. He was, however, non-committal on whether the UAE itself would weigh in with key Iraqi interlocutors to encourage them to do so. End Summary. -------------- We're Here -- Others Should Be As Well -------------- ¶2. (C) In a cordial November 7 meeting with Ambassador Crocker, recently arrived UAE Ambassador to Iraq Al-Shehhi said "our presence here makes sense and others should be here as well." Strengthening UAE-Iraqi ties, he said, benefits the Iraqi people, UAE business interests, and stability in the region. Importantly, he noted, "we have to be here to counteract efforts by countries and groups that are hurting the Iraqi political system and the Iraqi people." ¶3. (C) Ambassador Crocker underlined that UAE leadership at the highest levels over the past several months has been instrumental in encouraging other Arab countries to step forward and engage. In that context, he noted that the U.S. supports Iraq having normal relations with Iran but that that relationship is out of balance. The return of Iraq's Arab neighbors is a critical element for restoring balance in Iraq's regional relations and for securing overall, long-term stability. While Iraq is a multi-ethnic state, he added, it is -- in its essence -- an Arab state. Iraqis -- both Sunni and Shia -- bristle at Iranian pressure. He agreed with Ambassador Al-Shehhi's observation that for Iraqis to see Arab Ambassadors here provides them important reassurance. Specific to the UAE, Ambassador Al-Shehhi noted that one of his immediate tasks is to help make arrangements for a meeting of the Iraq-UAE Joint Committee that, he said, will meet in the UAE later this month at the Foreign Minister level. (Note: The Iraqi Foreign Ministry confirmed that a meeting of the joint committee is planned but no date has yet been set. End Note.) -------------- Economic Opportunities -------------- ¶4. (C) Turning to economic issues, Ambassador Crocker said that Iraq offers tremendous opportunities for UAE companies. One area where Iraq could especially benefit from the UAE's expertise is in the construction and housing sector. Entire communities need to be built or rebuilt and the UAE has vast experience in this field. Ambassador Al-Shehhi agreed that this is an area with great potential: "We want to help Iraqis with housing, ports, airports. We have very experienced companies." He added that the UAEG is encouraging companies from Abu Dhabi, Dubai and Sharjah but many remained concerned about the security situation in Iraq. That said, he noted that several important UAE investors are already engaging. For example, representatives of Dubai World have visited the port of Umm Qasr and are close to signing a contract. Also, during his most recent time in Abu Dhabi, he met a surprising number of business people who said they had recently visited Baghdad without any assistance from the government. ¶5. (C) On a separate note, Ambassador Al-Shehhi said the UAE is waiting for a decision from the GOI to reopen the Sheikh Zayed Hospital in Baghdad, which ceased operations about a year ago. Ambassador Crocker said initiatives such as these are hugely important and the U.S. Embassy would be happy to convey our support to the Ministry of Health and other relevant GOI bodies, if that would be helpful. Ambassador Al-Shehhi noted that as UAE engagement deepens, Embassy assistance in sharing security information would be particularly appreciated. -------------- SOFA -------------- ¶6. (C) Turning more broadly to the issue of security, Ambassador Crocker said the U.S.-Iraq bilateral security agreement (SOFA) is close to conclusion and underlined that any encouragement Ambassador Al-Shehhi and his government can give to key Iraqis to convince them to approve it would be BAGHDAD 00003530 002 OF 002 extremely helpful. Without responding directly to this request, Al-Shehhi agreed that it is in Iraqi interests to sign the SOFA, as the Iraqis are still not at the stage where they can take care of all security requirements themselves. This is particularly the case in Baghdad, he added. -------------- UAE Embassy -- Old and New -------------- ¶7. (C) Regarding his own situation and that of the UAE Embassy, Al-Shehhi said that, in general, he feels secure and that he is not in a dangerous situation. He noted that he benefits from having a military background and also from his most recent posting as UAE Ambassador to India -- a country that, as recent events have shown, is not immune to violence. Al-Shehhi said he expected that in the coming six months, as the UAE and other embassies set up more permanent residence at their new embassy sites, other Arab countries will send Ambassadors. In an interesting aside, Al-Shehhi noted that the UAE still maintains its old embassy site in the Mansour district and continues to run its generators there, providing electricity to 200 households in the immediate vicinity. This has engendered good will from people in the neighborhood who, he said, have protected the property since its closure. CROCKER