Identifier
Created
Classification
Origin
09RIYADH914
2009-07-13 10:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Riyadh
Cable title:
EX-IM BANK DISCUSSES $2 BILLION ARAMCO FACILITY, U.S.
how-toVZCZCXRO5653 PP RUEHDE RUEHDH RUEHDIR DE RUEHRH #0914 1941003 ZNR UUUUU ZZH P 131003Z JUL 09 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC PRIORITY 1180 RUEHZM/GCC COLLECTIVE
UNCLAS RIYADH 000914
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (HARRIS)
DEPT PASS TO EXPORT-IMPORT BANK (BIJAN KIAN)
E.O.12958: N/A
TAGS: ECON EPET SOCI SA
SUBJECT: EX-IM BANK DISCUSSES $2 BILLION ARAMCO FACILITY, U.S.
EXPORTS TO THE EASTERN PROVINCE
UNCLAS RIYADH 000914
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (HARRIS)
DEPT PASS TO EXPORT-IMPORT BANK (BIJAN KIAN)
E.O.12958: N/A
TAGS: ECON EPET SOCI SA
SUBJECT: EX-IM BANK DISCUSSES $2 BILLION ARAMCO FACILITY, U.S.
EXPORTS TO THE EASTERN PROVINCE
1. (SBU) Summary: U.S. Export-Import Bank Director Bijan Kian
visited Dhahran June 25-28 to meet with business leaders in the
Eastern Province. Kian discussed next steps towards signing a $2
billion facility with Saudi Aramco and explored other export
opportunities for U.S. goods and services in the Eastern Province.
End summary.
Meetings with Aramco
--------------
2. (SBU) Saudi Aramco President and CEO, Mr. Khalid al-Falih, hosted
Kian for a lunch which included the Consul General, General Counsel,
Treasurer, Vice President of Saudi Aramco Affairs, and General
Manager of Corporate Finance Project Development. Al-Falih said he
was pleased about the possibility of the $2 billion Ex-Im Bank
facility, and he inquired about a potential facility for the King
Abdullah University of Science and Technology (KAUST). Kian
expressed interest in the opportunity, and Al-Falih extended an
invitation to Kian for the KAUST opening on September 23.
3. (SBU) Saudi Aramco's Treasurer, Mr. Motassim A. Al-Maashouq, told
Kian that Aramco is interested in signing an MOU on a facility with
the Export-Import Bank. Kian explained the structure of the
facility, including reach back, tenure, and pricing options.
Al-Maashouq concluded that Aramco would continue to look at the MOU,
and hold more detailed discussions on the facility, possibly in
Washington, DC. Al-Maashouq noted the MOU was a "paradigm shift"
for the company, and said drawing on facilities was not a core part
of their liquidity management. "They need to better understand how
it would fit into Aramco's financing structure and planning," he
said.
Meeting with al-Mana Hospitals
--------------
4. (SBU) In his meeting with Mr. Ebrahim al-Mana, Board Chairman of
al-Mana Hospitals Group, Kian learned about the Group's expansion
plans. Though the Group is not in need of financial assistance, he
said, they are talking with advisors (a U.S. company) about
eventually going public. The group has four hospitals with 200 beds
in each, with plans to expand to 1,000 beds total. He said they
have 400 doctors and 1,200 registered nurses on staff. Fifty of the
doctors specialize in orthopedic surgery, and the group uses
prosthetic limbs from the U.S. company Zimmer. Al-Mana said the
company needs to expand outside of the Eastern Province.
5. (SBU) When asked about intravenous fluid supplies in Saudi
Arabia, al-Mana said there is one supplier in Jeddah and one in the
UAE. Demand for IV fluid in the region is high, and he claimed IV
fluid is not currently available in ambulances in the Kingdom (NB:
Our Health Unit says some ambulances in Riyadh do carry IV fluid).
The al-Mana Group manufactures small amounts of IV fluid, in
addition to radiology equipment. Their small manufacturing facility
has 100 employees, 40 of whom are Saudi. Kian noted other
opportunities for U.S. exporters in the Kingdom, including small
health care consulting firms and incinerator producers. Al-Mana
said he had invested in a water treatment and oil field chemicals
production plant in the Eastern Province with Nalco, a U.S. company
based outside Chicago.
Commercial opportunities for U.S. companies abound
-------------- --------------
6. (SBU) Kian attended a dinner at the family majlis of the firm
al-Yousef al-Dossary & brothers, where participants discussed the
economic crisis, the banking sector in the Kingdom, and U.S.-Saudi
Arabia trade issues. Members of the powerful and influential
al-Dossary family expressed strong preferences for U.S. goods and
services and noted abundant business opportunities in the Eastern
Province for Saudi and U.S. firms. The al-Dossary present all
agreed there is a strong need for more trade expos and reverse trade
missions with U.S. exporters in the Eastern Province. Kian and the
Consul General discussed holding a workshop on Islamic banking to
increase mutual understanding on the subject.
ERDMAN
SENSITIVE
SIPDIS
STATE FOR NEA/ARP (HARRIS)
DEPT PASS TO EXPORT-IMPORT BANK (BIJAN KIAN)
E.O.12958: N/A
TAGS: ECON EPET SOCI SA
SUBJECT: EX-IM BANK DISCUSSES $2 BILLION ARAMCO FACILITY, U.S.
EXPORTS TO THE EASTERN PROVINCE
1. (SBU) Summary: U.S. Export-Import Bank Director Bijan Kian
visited Dhahran June 25-28 to meet with business leaders in the
Eastern Province. Kian discussed next steps towards signing a $2
billion facility with Saudi Aramco and explored other export
opportunities for U.S. goods and services in the Eastern Province.
End summary.
Meetings with Aramco
--------------
2. (SBU) Saudi Aramco President and CEO, Mr. Khalid al-Falih, hosted
Kian for a lunch which included the Consul General, General Counsel,
Treasurer, Vice President of Saudi Aramco Affairs, and General
Manager of Corporate Finance Project Development. Al-Falih said he
was pleased about the possibility of the $2 billion Ex-Im Bank
facility, and he inquired about a potential facility for the King
Abdullah University of Science and Technology (KAUST). Kian
expressed interest in the opportunity, and Al-Falih extended an
invitation to Kian for the KAUST opening on September 23.
3. (SBU) Saudi Aramco's Treasurer, Mr. Motassim A. Al-Maashouq, told
Kian that Aramco is interested in signing an MOU on a facility with
the Export-Import Bank. Kian explained the structure of the
facility, including reach back, tenure, and pricing options.
Al-Maashouq concluded that Aramco would continue to look at the MOU,
and hold more detailed discussions on the facility, possibly in
Washington, DC. Al-Maashouq noted the MOU was a "paradigm shift"
for the company, and said drawing on facilities was not a core part
of their liquidity management. "They need to better understand how
it would fit into Aramco's financing structure and planning," he
said.
Meeting with al-Mana Hospitals
--------------
4. (SBU) In his meeting with Mr. Ebrahim al-Mana, Board Chairman of
al-Mana Hospitals Group, Kian learned about the Group's expansion
plans. Though the Group is not in need of financial assistance, he
said, they are talking with advisors (a U.S. company) about
eventually going public. The group has four hospitals with 200 beds
in each, with plans to expand to 1,000 beds total. He said they
have 400 doctors and 1,200 registered nurses on staff. Fifty of the
doctors specialize in orthopedic surgery, and the group uses
prosthetic limbs from the U.S. company Zimmer. Al-Mana said the
company needs to expand outside of the Eastern Province.
5. (SBU) When asked about intravenous fluid supplies in Saudi
Arabia, al-Mana said there is one supplier in Jeddah and one in the
UAE. Demand for IV fluid in the region is high, and he claimed IV
fluid is not currently available in ambulances in the Kingdom (NB:
Our Health Unit says some ambulances in Riyadh do carry IV fluid).
The al-Mana Group manufactures small amounts of IV fluid, in
addition to radiology equipment. Their small manufacturing facility
has 100 employees, 40 of whom are Saudi. Kian noted other
opportunities for U.S. exporters in the Kingdom, including small
health care consulting firms and incinerator producers. Al-Mana
said he had invested in a water treatment and oil field chemicals
production plant in the Eastern Province with Nalco, a U.S. company
based outside Chicago.
Commercial opportunities for U.S. companies abound
-------------- --------------
6. (SBU) Kian attended a dinner at the family majlis of the firm
al-Yousef al-Dossary & brothers, where participants discussed the
economic crisis, the banking sector in the Kingdom, and U.S.-Saudi
Arabia trade issues. Members of the powerful and influential
al-Dossary family expressed strong preferences for U.S. goods and
services and noted abundant business opportunities in the Eastern
Province for Saudi and U.S. firms. The al-Dossary present all
agreed there is a strong need for more trade expos and reverse trade
missions with U.S. exporters in the Eastern Province. Kian and the
Consul General discussed holding a workshop on Islamic banking to
increase mutual understanding on the subject.
ERDMAN