US embassy cable - 04ABUDHABI1016

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 001016 
 
SIPDIS 
 
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA 
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO 
USDOC FOR 1000/OC/ 
USDOC FOR 4520/ITA/IEP/ONE 
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI 
4500/ITA/MAC/DAS/WILLIAMSON 
3131/CS/OIO/ANESA 
 
E.O. 12958: DECL 04/06/09 
TAGS: EAIR, ECON, EPET, PGOV, PREL, SOCI, TC 
SUBJECT: UAE: TALK ABOUT TOWN 
 
REF: ABU DHABI 5076 
 
1.  (U) Classified by Deputy Chief of Mission Richard A. 
Albright, for reasons 1.5 (B) and (D). 
 
2.  (U) The "Talk About Town" series by the U.S. Mission in 
the UAE -- Embassy Abu Dhabi and Consulate General Dubai -- 
is provided on a periodic basis, and intended to report on 
local business atmospherics and commercial developments in 
the UAE.  Although uncorroborated by UAE officialdom and 
anecdotal in nature, the cables provide Washington 
audiences with the information we hear frequently in the 
majlises and living rooms throughout the UAE. 
 
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Shaykhly Shenanigans 
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3.  (C) The General Manager (please protect) of the UAEG- 
owned power plant at Shweihat told Econoff that he expects 
brownouts throughout the UAE this summer.  He says that the 
Abu Dhabi Water and Electric Authority (ADWEA) is 
pressuring his company, U.S.-based CMS Energy, to finish 
construction of the plant in spite of ADWEA's 
acknowledgment that it solely is to blame for the delay 
(see ref for details).  Despite the acute shortage of 
electricity in the UAE, the CMS executive understands that 
Shaykh Sultan bin Zayed Al-Nahyan reportedly has ordered 
the destruction of the 192 MW Mirfa power plant -- a 
facility commissioned in 1995 about 170 kilometers outside 
of Abu Dhabi city -- because it blocks the view of the sea 
from his nearby palace. 
 
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Mayhem In The Souk 
------------------ 
 
4.  (U) A recent squabble in the Abu Dhabi Old Souk turned 
into a full-blown mob fight that raged for more than half 
an hour before police intervened.  According to press 
reports, a customer bought a bottle of perfume from a souk 
dealer.  Another souk dealer selling a similar product 
questioned the customer about the price and quality of the 
perfume.  The two merchants began arguing when the second 
merchant told the customer she should return the perfume 
and demand a refund of her money.  The fight turned into a 
mob scene as other traders joined in; one participant was 
taken to the hospital with a broken arm.  Another combatant 
bumped into a jewelry store window, which triggered an 
alarm and notified the police.  The Ministry of Economy WTO 
Office Director subsequently told Econoff that, ironically, 
the perfume that started the fight was a cheap imitation of 
a famous name brand; both merchants subsequently were 
arrested on IPR violations and the perfume destroyed. 
 
------------------------ 
Domo Arigato, Mr. Roboto 
------------------------ 
 
5.  (U) The UAE English-language newspapers gave front-page 
coverage to the Qatari Government's decision to use robots 
as camel jockeys in some of last week's races.  The UAEG 
has worked in recent years to ban underage camel jockeys 
and implement regulations cracking down on the smuggling of 
children to the UAE to be used as jockeys.  When Poloff 
mentioned the article to the MFA Americas Desk Officer, she 
jokingly posited that the UAEG probably would receive 
complaints from animal rights activists if the local camel 
races begin using robo-jockeys.  On a more serious note, 
the UAEG official commented that the idea was an 
interesting mix of the "old and new" -- an old tradition, 
updated with new technology. 
 
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Dubai Bankers Compare Notes 
--------------------------- 
 
6.  (C) For the last several months, a group of seven or 
eight compliance officers from Dubai's major banks has been 
meeting informally (and presumably without the knowledge of 
the UAE Central Bank) to discuss compliance issues.  This 
group discusses "pan-bank" compliance issues and shares 
information and experience, such as comparing notes on 
suspicious transaction reports (STRs) they have filed with 
the Central Bank.  This group includes a representative 
from each of Dubai's largest banks -- except for National 
Bank of Dubai and HSBC, possibly because of concerns about 
the group being outside of the Central Bank's purview. 
Deputy Chairman of HSBC David Hodgkinson, however, told 
Dubai PolEconoff that he has "no objection" to HSBC's 
sending someone to these informal meetings from now on, and 
had recently told his compliance officer just that. 
 
Wahba