BACKGROUND ON SAUDI VISITOR TARIQ BIN LADEN AND

C O N F I D E N T I A L RIYADH 05215

E.O. 12356: DECL: OADR
TAGS: PREL UR SA ECON
SUBJECT: BACKGROUND ON SAUDI VISITOR TARIQ BIN LADEN AND
BIN LADEN COMPANIES

REF: MOSCOW 19452


1. (CONFIDENTIAL - ENTIRE TEXT).


2. POST THANKS MOSCOW FOR ITS INTERESTING REPORT
(REFTEL). TO PROVIDE A CONTEXT FOR THE "IZVESTIYA"
INTERVIEW WITH TARIQ BIN LADEN AND ITS IMPACT ON SAUDI
SOVIET TIES, POST PROVIDES FOLLOWING INFORMATION ON TARIQ
AND THE BIN LADEN BUSINESS COMPANIES IN GENERAL.


3. THE BIN LADEN COMPANIES ARE AMONG THE LARGEST
CONSTRUCTION FIRMS IN SAUDI ARABIA, WITH ESTIMATED
HOLDINGS OF SAUDI RIYALS 38 BILLION ($10 BILLION). BIN
LADEN HAS THUS FAR CONCENTRATED ON INVESTMENT WITHIN
SAUDI ARABIA, THOUGH THEY ARE INVOLVED IN NUMEROUS JOINT
VENTURES WITH EUROPEAN AND AMERICAN COMPANIES. THE
COMPANIES ARE ESSENTIALLY FAMILY-RUN: SEVEN OF THE BIN
LADEN BROTHERS FULLY CONTROL THE BOARD OF DIRECTORS.
THEIR BUSINESS REPUTATION IS CONSIDERED EXCELLENT.


4. THE RELATIONSHIP BETWEEN THE SAG AND THE BIN LADEN
COMPANIES IS A STRONG ONE, PRIMARILY DUE TO THE BIN
LADEN'S FAMILY TIES TO THE ROYAL FAMILY AND THE
COMPANIES' LEADING ROLE IN DEVELOPMENT OF THE KINGDOM'S
INFRASTRUCTURE. WHEN THE COMPANIES' FOUNDER, SHAYKH
MOHAMMED BIN LADEN DIED IN 1966, KING FAISAL SET UP A
SORT OF ROYAL CHARTER FOR THE COMPANY WHICH KEPT THE
COMPANY AFLOAT BY GUARANTEEING GOVERNMENT CONTRACTS AND
SETTING UP A SPECIAL BOARD OF DIRECTORS TO ADMINISTER THE
COMPANY UNTIL THE BIN LADEN SONS CAME OF AGE. THE
GOVERNMENT HAS ALSO ENTRUSTED BIN LADEN WITH A MAJOR
SHARE IN THE RENOVATION OF THE TWO HOLY MOSQUES IN MECCA
AND MADINAH. IT IS BELIEVED THAT THE FIRMS' NUMBER TWO
MAN, SHAYKH BAKR BIN LADEN, HAS DIRECT PERSONAL TIES WITH
KING FAHD.


5. TARIQ M. BIN LADEN IS NOT ON THE BOARD OF DIRECTORS
OF THE BIN LADEN COMPANIES, THOUGH HE DOES RUN A LARGE
SUBSIDIARY BRANCH. LIKE HIS BROTHERS, TARIQ MAINTAINS
CLOSE RELATIONS WITH MEMBERS OF THE ROYAL FAMILY. AT 43,
HE IS ONE OF THE ELDEST BROTHERS OF THE BIN LADEN CLAN.


6. COMMENT: BECAUSE OF TARIQ'S SENIOR POSITION AMONG
THE BIN LADEN ELITE AND HIS TIES TO THE ROYAL FAMILY, HIS
VISIT TO MOSCOW MAY BE MORE SIGNIFICANT THAN THAT OF A
SIMPLE BUSINESS VISIT. IT IS LIKELY THAT HE CONSULTED
WITH SAG OFFICIALS BEFORE LEAVING THE KINGDOM AND WILL
REPORT BACK TO THEM UPON HIS RETURN. TARIQ MAY ENVISION
A ROLE FOR HIMSELF IN FUTURE FINANCIAL COOPERATION
BETWEEN THE USSR AND THE ARAB BUSINESS COMMUNITY THROUGH
HIS CORPORATE TIES WITH THE SAUDI-CAIRO BANK.


7. A CLOSER CONNECTION BETWEEN THE SAG AND MOSCOW IS NOT
NECESSARILY A NEGATIVE DEVELOPMENT. AN INCREASED SAUDI
PRESENCE AMONG THE MUSLIM POPULATIONS THROUGH ECONOMIC
AND RELIGIOUS TIES COULD ACT AS A GUARD AGAINST IRANIAN
INFLUENCE.


8. NOTE: WE ARE ATTEMPTING TO OBTAIN A COPY OF TARIQ'S
SPEECH AND WILL SEND IT TO MOSCOW AS SOON AS POSSIBLE.


FREEMAN.