KUDOS TO DUBAI AND ABU DHABI FOR EXCELLENT

UNCLAS STATE 130560 SENSITIVE SIPDIS FOR AMBASSADOR OLSON FROM EEB ASSISTANT SECRETARY JOSE W. FERNANDEZ NEA/ARP FOR BRIDGET MCGOVERN E.O. 12958: N/A TAGS: ECON EFIN EINV ETRD PREL AE SUBJECT: KUDOS TO DUBAI AND ABU DHABI FOR EXCELLENT REPORTING REF: A. DUBAI 52 ¶B. ABU DHABI 189 ¶C. DUBAI 111 ¶D. ABU DHABI 464 ¶E. DUBAI 253 ¶F. DUBAI 275 ¶G. DUBAI 392 ¶H. DUBAI 491 ¶I. ABU DHABI 1114 ¶J. DUBAI 516 ¶K. DUBAI 533 ¶L. ABU DHABI 1149 ¶1. (SBU) EEB appreciates Embassy Abu Dhabi's and Congen Dubai's timely, consistent, and astute reporting on the recent Dubai World debt crisis and related financial events. These cables have been extremely helpful in laying out the broader political and economic policy challenges posed by the debt crisis. The Posts have leveraged their broad-based and often high-level contacts to provide context and insight not available from external sources. Individual officers have also been very responsive in answering follow-on queries. ¶2. (SBU) Reftels comprise a valuable stream of reporting that flagged nearly a year ago how Dubai World's subsidiary Nakheel was experiencing problems meeting its debt obligations -- long before the story was widely covered in the media. The candor provided to Post about the oversight of state-owned firms (like Dubai World) was insightful and suggests excellent cultivation of sources in the field. A full two months prior to Dubai World's "default" announcement, the Posts had effectively highlighted and framed the issue for Washington: whether Dubai's government and state-owned entities would face the music and resolve their debt problems, or rely on a bailout from Abu Dhabi. ¶3. (U) Many thanks to the reporting team; please keep up the great work. CLINTON