US embassy cable - 04ABUDHABI3718

UNCLAS ABU DHABI 003718 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARP, NEA/RA, EB 
STATE PASS USTR 
 
E.O. 12958: DECL 
TAGS: ECON, ETRD, EFIN, PREL, PTER, IZ, TC 
SUBJECT: SHEIKH HAMED'S RAILWAY 
 
 
1. (SBU) Summary:  The Chairman of the Abu Dhabi Department 
of the Economy suggested to Ambassador on October 17 that 
the U.S. focus more of its regional efforts on economic 
reform.  He asked for USG support for a railway that would 
stretch from the Gulf of Oman up to Jordan.  End Summary. 
 
2. (SBU) On October 17, Ambassador and EconChief met with 
Chairman of the Abu Dhabi Department of the Economy, Sheikh 
Hamed bin Zayed, to follow-up on his idea of building a 
trans-Arabian peninsula railway which could connect to the 
proposed EuroMed railway in Jordan.  Sheikh Hamed had 
mentioned the concept briefly to USTR Zoellick last week 
and Abu Dhabi Deputy Crown Prince Mohammed bin Zayed had 
asked that he follow up with Ambassador.  Before turning to 
his railway proposal, Sheikh Hamed encouraged the USG to 
focus its efforts in the Arab world on economic reform. In 
his view, he said, the region's highest priority was 
economic reform and job creation; democratic reform could 
follow.  He noted rhetorically "people need jobs before 
they go to the polls." 
 
3. (SBU) Sheikh Hamed then turned his discussion to the 
EU's proposal for a EuroMed railway project stretching from 
Morocco to Syria.  He noted that he had told German 
Chancellor Gerhard Schroeder that the proposed route made 
little economic sense, because goods didn't flow over that 
route.  He counter-proposed a railway that would stretch 
from the Indian Ocean up the Arabian Peninsula and to 
Jordan, where it could connect with a EuroMed railway 
network.  This route would tie together the Asian and 
European markets.  According to Sheikh Hamed, Schroeder 
liked the idea, but was unable to get EU support. 
 
4. (SBU) Sheikh Hamed explained that the proposed railway 
would stretch from the port of Fujairah on the Gulf of Oman 
through the Emirate of Abu Dhabi and then through Saudi 
Arabia to Jordan.  This route would bypass the vulnerable 
straits of Hormuz.  He emphasized that Jordan could benefit 
either as the terminus of the railway or as the 
intersection between two major railway networks.  According 
to Sheikh Hamed, Chinese, Indians, Saudi, and Kuwaiti 
investors were already expressing interest in the project. 
He asked for U.S. support for the project, both for as an 
economic development program and as a regional integration 
program and suggested that post send a participant to the 
MEED conference in Dubai on railway projects in the region 
for more information. 
 
5. (SBU) Comment:  Sheikh Hamed is an "up-and-comer" in the 
ranks of the ruling Al-Nahyan family, and is regarded as 
one of Abu Dhabi's economic reformers.  He has laid out, in 
his railway proposal, an ambitious vision for regional 
economic integration and assistance to poorer countries 
(and regions in the UAE).  Although we have yet to assess 
the commercial merits of this concept, it is clear that 
Hamed has the confidence of his elder half brother, Abu 
Dhabi Deputy Crown Prince Sheikh Mohammed bin Zayed. End 
Comment. 
Sison