Identifier
Created
Classification
Origin
09RIYADH893
2009-07-07 10:44:00
CONFIDENTIAL
Embassy Riyadh
Cable title:
PRINCE WALEED BIN TALAL ON BUSINESS AND SOCIAL
how-toVZCZCXRO1743 PP RUEHDE RUEHDH RUEHDIR DE RUEHRH #0893/01 1881044 ZNY CCCCC ZZH P 071044Z JUL 09 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC PRIORITY 1123 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 000893
SENSITIVE
SIPDIS
DEPT FOR NEA/ARP (HARRIS)
E.O. 12958: DECL: 07/07/2017
TAGS: ECON EFIN PGOV SA
SUBJECT: PRINCE WALEED BIN TALAL ON BUSINESS AND SOCIAL
REFORMS
Classified By: DCM David Rundell for reasons 1.4 (d) and (e).
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 000893
SENSITIVE
SIPDIS
DEPT FOR NEA/ARP (HARRIS)
E.O. 12958: DECL: 07/07/2017
TAGS: ECON EFIN PGOV SA
SUBJECT: PRINCE WALEED BIN TALAL ON BUSINESS AND SOCIAL
REFORMS
Classified By: DCM David Rundell for reasons 1.4 (d) and (e).
1. (C) Summary: In a tour d'horizon with Congressman Alan
Grayson (D-FL) on June 28, Prince Al-Waleed Bin Talal
expounded on his business philosophy and belief in social
reform in the Kingdom. Al-Waleed believes in investing for
the long-term. He claimed his royal lineage is more a
handicap than an advantage in his business affairs. He has
faith in the U.S. economy, but worries whether President
Obama is taking on too many demanding tasks at the same time.
He said King Abdullah supports his efforts to loosen the
conservative strictures that affect women and social
interaction in the Kingdom. End summary.
2. (C) Congressman Alan Grayson met with Saudi
multi-billionaire HRH Prince Al-Waleed Bin Talal Bin Abdul
Aziz on June 28 in the Prince's office in Kingdom Tower (NB:
A 99-story skyscraper he built in the center of Riyadh that
is the country's tallest building). Scheduled for one hour,
the meeting turned into a two-hour tour d'horizon with
Al-Waleed recounting with relish and in detail his business
philosophy, encounters with various heads of state, and
efforts to introduce social reforms into the Kingdom.
NO SILVER SPOON
--------------
3. (C) The Prince asserted that his royal lineage is more a
hindrance than an advantage. Some bankers are loath to lend
to Saudi royals and their businesses, because they fear they
would never prevail in court in case of a default. His every
action is scrutinized by the press and the conservative
religious establishment. He went bankrupt twice early in his
business career. He described how the only financial
assistance he received from his father was the gift of a
house worth $2 million, which he quickly mortgaged to fund
his third and successful attempt to launch a business
enterprise. Al-Waleed has two children. He said they will
not carry on the business when he retires.
LONG-TERM, BLUE CHIP INVESTMENTS
--------------
4. (C) Al-Waleed said his business strategy consists of
investing in blue chip global companies for the long-term.
He likened his business philosophy to that of Warren Buffet,
who happens to be a close friend. This approach to business
fits well with the Saudi Government's strong preference for
cautious economic policies. He warned fellow Saudis of the
impending collapse of the Saudi stock market in 2006, but few
heeded him. Al-Waleed stressed that he rejects out of hand
the predilection of some investors to dismantle firms they
acquire for short-term, immediate profits. He seemed
particularly proud of his investments in NewsCorps, the Four
Seasons, and "strategic hotels" like International Plaza in
New York, and the George V in Paris. Al-Waleed said his
investments average yearly returns ranging between 20-30
percent and that his debt to asset ratio will drop from 30%
to 18% by 2013.
U.S. ECONOMY
--------------
5. (C) The Prince expressed faith in the dollar while
acknowledging that the Saudi riyal - U.S. dollar peg (3.75
SAR per USD since 1986) might have to be adjusted. The U.S.
debt to GDP ratio might rise to as high as 85 percent, but
the U.S. economy is more "resilient" than the economies of
Japan or Europe. Al-Waleed greatly admires President Obama
but wondered whether the president might be taking on too
many issues at the same time.
KING'S ALTER EGO?
--------------
6. (C) Al-Waleed relished relating his run-ins with the
Kingdom's religious conservatives. He was involved with the
first public showings of films in the Kingdom in many years.
His wife has openly requested that women be allowed to drive.
He supports French President Sarkozy's campaign against
women wearing coverings hiding their faces. Brandishing a
heavily marked copy of a book in Arabic entitled "The Hijab
of the Muslim Woman," he argued forcefully that the full
hijab was a tribal, not a Muslim custom, which he deemed
demeaning. Since he is the greatest philanthropist and
mosque builder in the Kingdom, religious conservatives have
little basis to stigmatize him as irreligious. Al-Waleed
asserted that his efforts to loosen social restrictions enjoy
the full, if only tacit, support of the King.
RIYADH 00000893 002 OF 002
7. (U) Congressman Grayon did not have the opportunity to
clear this message.
ERDMAN
SENSITIVE
SIPDIS
DEPT FOR NEA/ARP (HARRIS)
E.O. 12958: DECL: 07/07/2017
TAGS: ECON EFIN PGOV SA
SUBJECT: PRINCE WALEED BIN TALAL ON BUSINESS AND SOCIAL
REFORMS
Classified By: DCM David Rundell for reasons 1.4 (d) and (e).
1. (C) Summary: In a tour d'horizon with Congressman Alan
Grayson (D-FL) on June 28, Prince Al-Waleed Bin Talal
expounded on his business philosophy and belief in social
reform in the Kingdom. Al-Waleed believes in investing for
the long-term. He claimed his royal lineage is more a
handicap than an advantage in his business affairs. He has
faith in the U.S. economy, but worries whether President
Obama is taking on too many demanding tasks at the same time.
He said King Abdullah supports his efforts to loosen the
conservative strictures that affect women and social
interaction in the Kingdom. End summary.
2. (C) Congressman Alan Grayson met with Saudi
multi-billionaire HRH Prince Al-Waleed Bin Talal Bin Abdul
Aziz on June 28 in the Prince's office in Kingdom Tower (NB:
A 99-story skyscraper he built in the center of Riyadh that
is the country's tallest building). Scheduled for one hour,
the meeting turned into a two-hour tour d'horizon with
Al-Waleed recounting with relish and in detail his business
philosophy, encounters with various heads of state, and
efforts to introduce social reforms into the Kingdom.
NO SILVER SPOON
--------------
3. (C) The Prince asserted that his royal lineage is more a
hindrance than an advantage. Some bankers are loath to lend
to Saudi royals and their businesses, because they fear they
would never prevail in court in case of a default. His every
action is scrutinized by the press and the conservative
religious establishment. He went bankrupt twice early in his
business career. He described how the only financial
assistance he received from his father was the gift of a
house worth $2 million, which he quickly mortgaged to fund
his third and successful attempt to launch a business
enterprise. Al-Waleed has two children. He said they will
not carry on the business when he retires.
LONG-TERM, BLUE CHIP INVESTMENTS
--------------
4. (C) Al-Waleed said his business strategy consists of
investing in blue chip global companies for the long-term.
He likened his business philosophy to that of Warren Buffet,
who happens to be a close friend. This approach to business
fits well with the Saudi Government's strong preference for
cautious economic policies. He warned fellow Saudis of the
impending collapse of the Saudi stock market in 2006, but few
heeded him. Al-Waleed stressed that he rejects out of hand
the predilection of some investors to dismantle firms they
acquire for short-term, immediate profits. He seemed
particularly proud of his investments in NewsCorps, the Four
Seasons, and "strategic hotels" like International Plaza in
New York, and the George V in Paris. Al-Waleed said his
investments average yearly returns ranging between 20-30
percent and that his debt to asset ratio will drop from 30%
to 18% by 2013.
U.S. ECONOMY
--------------
5. (C) The Prince expressed faith in the dollar while
acknowledging that the Saudi riyal - U.S. dollar peg (3.75
SAR per USD since 1986) might have to be adjusted. The U.S.
debt to GDP ratio might rise to as high as 85 percent, but
the U.S. economy is more "resilient" than the economies of
Japan or Europe. Al-Waleed greatly admires President Obama
but wondered whether the president might be taking on too
many issues at the same time.
KING'S ALTER EGO?
--------------
6. (C) Al-Waleed relished relating his run-ins with the
Kingdom's religious conservatives. He was involved with the
first public showings of films in the Kingdom in many years.
His wife has openly requested that women be allowed to drive.
He supports French President Sarkozy's campaign against
women wearing coverings hiding their faces. Brandishing a
heavily marked copy of a book in Arabic entitled "The Hijab
of the Muslim Woman," he argued forcefully that the full
hijab was a tribal, not a Muslim custom, which he deemed
demeaning. Since he is the greatest philanthropist and
mosque builder in the Kingdom, religious conservatives have
little basis to stigmatize him as irreligious. Al-Waleed
asserted that his efforts to loosen social restrictions enjoy
the full, if only tacit, support of the King.
RIYADH 00000893 002 OF 002
7. (U) Congressman Grayon did not have the opportunity to
clear this message.
ERDMAN