DUBAI PORTS WORLD VISIT

C O N F I D E N T I A L SECTION 01 OF 02 BASRAH 000083 SIPDIS E.O. 12958: DECL: 10/26/2018 TAGS: ECON EINV EWWT IZ SUBJECT: DUBAI PORTS WORLD VISIT BASRAH 00000083 001.2 OF 002 CLASSIFIED BY: Won Lee, Acting Director, Regional Embassy Office Basrah, Department of State. REASON: 1.4 (b),(d) ¶1. (SBU) SUMMARY: Representatives of the Dubai World (DW) Holding Company visited Basra on 6 October, to look at potential infrastructure projects in the province. Dubai World's visit was facilitated by the Basra Inward Investment Advisor and included tours of Basra city, the port facilities of Umm Qasr and meetings during which the guests had the opportunity to discuss Basra's investment potential with Iraqi counterparts. This was DW's first opportunity to visit Basra and advance its interest in major strategic and infrastructure investment projects. The visit was a step forward for Basra, resulting in a note signed by Iraqi officials from Basra airport and ports supporting DW officials in making a successful visit to Baghdad at the end of this month. This cable is based on reports of the visit from the British Deputy Consul General and Brian Green. End Summary. ¶2. (SBU) The delegation included Dubai Ports (a DW subsidiary) World Vice President Hassan Hadi, Istithmar World CEO Tom Ronell, the Development Manager of Limitless, Ahmed Al Shareif and DPW Project Manager Ranjith Powell, as well as Dubai Port World's contracted security and risk advisor. The delegation met Chairman of the Basra Investment Commission Dr Haider Ali, DG of Ports, Basra Development Commissioner Captain Saleh, and Director of Basra International Airport (BIA) Mr Abd Al-Amir Ghanim. The group attended a presentation on the investment climate in Basra which highlighted the establishment of the Basra Investment Commission, the role of the Basra Economic Development Strategy, and the availability of financial and technical advice from the UK PRT. The facilities visited reflected their potential investment interest - ports, the airport, construction, real estate, hotels, tourist development. Part of the delegation visited Umm Qasr Port, North and South, as well as the Al Faw peninsula and the Shatt Al Arab. The remainder visited the city centre, including the Corniche, Basra Port, the Sheraton Shatt Al Arab Hotel and potential housing development sites. Both groups then rejoined for a tour of BIA. ¶3. (SBU) At a reception at the airport, attended by Governor Wa'ili, the visitors optimistically expressed surprise at the investment potential of Basra. Al Shareif made the flattering suggestion that Basra could surpass Dubai in the future. The visitors noted that the security situation had clearly improved and the presentation of Basra in the media did not reflect the reality - a far more pleasant environment for investors than they are led to expect. One member of the visiting teams said he would "send out the photographs of myself walking in Basra to all my contacts" to show this. The DW officials reported that the visit had exceeded their expectations and invited Major General Salmon, Commander of MND(SE) to Dubai to give a security briefing to senior members of DW to reinforce the message. MG Salmon agreed to schedule the visit. ¶4. (SBU) British counterparts report a range of projects were discussed in separate afternoon discussions and the wrap-up session, including residential development (10,000 villas in two projects); hotel and leisure (interest in the Basra Palace , as well as other property in Basra); airport services and associated hotel development; a first class hotel in Basra; possible interest to be discussed in the Grand Port in Al Faw, Umm Qasr, and in Basra Port, and other projects. The visitors made the point that if they engaged in Basra other projects by smaller companies could be conceived and flow from that. Prior to the visit the company had not formed fixed ideas other than an interest in Umm Qasr. ¶5. (SBU) The Iraqi officials present which included the Governor, PC Chairman and several DGs supported DW's planned visit to Baghdad at the end of this month; they signed a note to that effect, reflecting the key conclusions of the visit, and accepted invitations for a reciprocal visit to Dubai. ¶6. (SBU) British Inward Investment Advisor for Iraq Adrian Green shared with the REO his conclusion that aspects of the visit demonstrate that: - Basra appeals to a range of potential investment interests; - current media presentation remains unhelpful to the point of discouraging investors; - the local airport management continue to develop their capabilities and are now acting as a team; - the expert military assistance in visits is crucial and highly valued by the investors; - Dr Haider Ali and other local dignitaries, including the Governor, are clearly developing their capacity to respond to investment visits; BASRAH 00000083 002.2 OF 002 ¶7. (SBU) In a subsequent meeting on the same day, the GOC and the Senior RAF officer reported on the success of the visit to the outgoing US Transportation Attache and his incoming replacement, David DeCarme, in person. DPW requested and the officials present agreed to provide information related to Umm Qasr port financial and operational performance. ¶8. (CON) Comment: This was a very encouraging visit for the British PRT and for Basra: the size and scope of potential investments discussed could significantly improve the economy of Basra. It would be premature to speculate on how much Dubai World might one day invest in Iraq, but the visitors did state that were they to invest in Basra it would be at a major strategic level, from which could flow a multitude of smaller initiatives. To quote Mr. Green, `If this all gets off the ground, we really will be able to say, "Basra means business"'. Embassy Baghdad may want to follow up separately on the planned Baghdad visit. End comment. LEE