US embassy cable - 90RIYADH5215

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.