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.