US embassy cable - 05MUSCAT1191

UNCLAS MUSCAT 001191 
 
SIPDIS 
 
DEPT FOR EB/CBA, NEA/ARPI, AND NEA/PPD 
DEPT PLEASE PASS USTR/VESPINEL AND JBUNTIN 
USDOC FOR 4520/ITA/MAC/AMESA/OME/MTALAAT 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, EIND, PGOV, KMPI, KPAO, SCUL, MU, Tourism 
SUBJECT: OPPENHEIMER OPTIMISM ON OMANI TOURISM 
 
REF: MUSCAT 1077 
 
1. (U) Summary:  The Ambassador met with representatives of 
Oppenheimer and Fitch Ratings on July 27 to discuss the 
"Blue City" tourism project and other economic developments 
in Oman.  Potential linkages with Boston University and 
Oppenheimer of North America also surfaced during the 
meeting.  End summary. 
 
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The Business Of Oman Is Business 
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2. (SBU) On July 27, the Ambassador met with Jerald 
Belofsky, Chief Executive Officer of Oppenheimer of North 
America LLC, Andrew Steel, Managing Director of Fitch 
Ratings, and Oliver Kimche, Associate Director of Fitch 
Ratings.  The visitors were in Oman to assess and evaluate 
the financial development of the "Blue City" tourism project 
northwest of Muscat (septel). 
 
3. (SBU) The three men asked the Ambassador's views on the 
current investment climate in Oman; the Ambassador replied 
that billions of U.S. dollars had already poured into Sohar 
and other locations, and reassured the visitors that 
companies such as Dow and Bechtel would not have committed 
such significant financial resources to the Sultanate if 
they were not convinced of its safety and stability. 
 
4. (SBU) The Ambassador then asked the visitors for their 
opinion of the Blue City project.  Mr. Belofsky noted that a 
concession agreement had been concluded with the Ministry of 
Tourism, and that Bear Stearns officials were "incredibly 
enthusiastic" about the project.  Mr. Steel added that Blue 
City is a "particularly large and ambitious project" - 35 
square kilometers in size, according to the visitors - but 
it had been well thought-out.  Mr. Steel also observed that 
the economic success of the project depends in part on 
improving the accessibility and efficiency of air travel 
into Muscat. 
 
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Additional Linkages 
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5. (U) Mr. Belofsky volunteered that Boston University is 
interested in creating educational linkages with Oman, 
possibly even opening a branch campus in Muscat.  Omani 
officials are scheduled to meet with BU representatives on 
the margins of the UN General Assembly in September.  In 
addition, after being informed of MEPI's Business Internship 
for Middle Eastern Women Program (BIP), Mr. Belofsky 
expressed interest in having a qualified Omani candidate 
serve an internship at Oppenheimer's headquarters in New 
York. 
 
6.  Comment:  We plan to reap the windfall that increased 
U.S. investment appears to be bringing to our 
education/exchange efforts (reftel), and will follow up on 
both of these initiatives. 
 
BALTIMORE