US embassy cable - 04DJIBOUTI492

C O N F I D E N T I A L DJIBOUTI 000492 
 
SIPDIS 
 
E.O. 12958: DECL: 04/05/2014 
TAGS: PREL, PGOV, AMGT, ABLD, ECON, ETRD, EINV, DJ, SA 
SUBJECT: SAUDI INVESTOR DEVELOPING HARAMOUS REGION 
 
REF: DJIBOUTI 340 
 
Classified By: Pol/Econ Erinn C. Reed for reasons 1.4 (b) and (d) 
 
1. (U) PolOff, Econ/Comm Assistant and OBO 
representative met April 4 with Mohammed M. Ali Yamani, 
Managing Director of Maya Trading Company in Jeddah and 
Fahmi Ahmed Al-Hag, President Guelleh's Advisor on 
Investment.  Yamani recently signed a contract with the 
Government of Djibouti, including full land ownership 
rights, to develop the Haramous region of Djibouti city. 
(See Reftel)  Embassy met with Yamani to discuss the 
impact the Haramous Village development would have on 
possible sites for a New Embassy Compound.  All three 
possible sites are located within the Haramous Village 
area. 
 
2. (U) Al-Hag led off discussions reminding Embassy 
representatives that the U.S. had not made any formal 
requests for sites to the government and a decision 
would have to be made quickly due to the high demand 
for land in the last residential zoned sector of the 
city.  Al-Hag explained that the amount of land 
designated for the Haramous Village project is 840,000 
square meters, which was increased from the initial 
number cited in reftel.  Al-Hag also explained that 
though this region has been undeveloped up to this 
point, there are twenty landowners in the Haramous 
area that would be re-imbursed for the relinquishment 
of their holdings. 
 
3. (U) Yamani's attitude was very cordial and eager, 
commenting that the Embassy would be a client and any 
special considerations would be accommodated.  Yamani 
showed Embassy representatives a detailed plan of 
Haramous Village and discussed the time frame and 
process of construction.  Haramous Village is intended 
to be a new high-end residential area, with an average 
villa cost of $250,000-350,000.  The village will have 
260 total new villas, as well as a housing complex with 
apartments to rent.  These apartments will be available 
to rent for short periods of time for businessmen 
traveling through Djibouti for longer amounts of time. 
Haramous Village will have Mosques, reception halls, a 
recreation center, police and fire stations, a clinic, 
commercial center and a luxury hotel on the water. 
The project will have all the most modern technological 
infrastructure and will be equipped with piping for 
eventual sewage disposal systems that would accompany a 
waste water treatment plant if Djibouti were to convert 
from its current septic tank system.  Yamani emphasized 
that the project was at an early stage and all requests 
could be accommodated and plans adapted before 
construction began.  Yamani indicated a willingness to 
work with whichever site the U.S. picked for a new 
Embassy. 
 
3. (C) COMMENT: Post information reveals that Yamani 
has influential ties with the President's brother, 
Said Omar Guelleh.  Post has also heard rumors 
that bribes may have been passed to expedite the 
acquisition and processing of permits for the Haramous 
development project.  Post does not have credible 
evidence of these bribes, or that any money exchanged 
went beyond the standard favors that grease the wheels 
of business in Djibouti.  However, Post's impression 
of Yamani was that of a very honest, genial, and 
professional businessman willing to do the job right 
the first time and adapt to meet the needs of a 
potential client.  Any information Embassy Riyadh or 
Consulate Jeddah can shed on Yamani would be greatly 
appreciated.  End Comment. 
RAGSDALE