US embassy cable - 05DOHA1764

UNCLAS SECTION 01 OF 02 DOHA 001764 
 
SIPDIS 
 
STATE FOR NEA/ARPI, NEA/RA 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, QA 
SUBJECT: AMIR'S INAUGURAL ADDRESS TO ADVISORY COUNCIL 
 
 
1. (U) Summary. On Tuesday, October 11th, the Amir Sheikh 
Hamad Bin Khalifa Al-Thani delivered the opening address to 
the 34th session of the Advisory Council. The Amir's speech 
was perhaps more noteworthy for what it did not say, as 
opposed to what it said. The speech touched on Qatar's 
economic development and gains, and the permanent 
constitution, which came into effect last June. Absent from 
the address, however, was any mention of the timing of 
elections to the Advisory Council. End Summary. 
 
2. (U) In a speech largely touching on the country's economic 
development and growth, the Amir, Sheikh Hamad Bin Khalifa 
Al-Thani, inaugurated the 34th session of the Advisory 
Council on Tuesday, October 11th. The Amir began his speech 
to the members of the Advisory Council hailing the recently 
implemented permanent constitution, which according to him 
"crowned the phase of finalizing the institutional and 
legislative framework of the state of institutions and law 
that is based on the separation of powers." In his speech, 
the Amir announced a shift in the State's focus and presented 
a framework for good governance. While the Amir praised the 
implementation of the new constitution, he stressed that the 
more difficult challenges lie ahead: ensuring good governance 
and government efficiency, which are fundamental for 
advancing Qatar's social and economic development. 
 
3. (U) To achieve these new priorities, the Amir stressed 
that both public and private sectors must play critical 
roles. According to the Amir, the State will direct its 
attention toward "creative executive work," i.e., improving 
the "management and work systems in the State organs." To 
this end, the Amir mentioned that the State had already freed 
some important sectors and utilities from governmental 
restrictions and rules and established free zones and 
financial centers with systems that meet international 
standards. While he acknowledged Qatar's overall good 
economic performance, the Amir called on the private sector, 
in particular financial institutions, to create investment 
opportunities that would "absorb the savings of citizens and 
the surplus of development." 
 
4. (U) In reviewing Qatar's economic progress over the last 
decade, the Amir presented a state and economy in robust good 
health, with essential services such as education and 
universal health care for citizens. The Amir also stressed 
that while citizens' rights are protected, those rights are 
balanced by their duties to the State. The Amir provided an 
inventory of positive economic achievements: An increase in 
GNP to approximately QR103.5 bn (US$ 28.4 billion) in 2004 
from about QR29.5 bn (US$ 8.1 billion) in 1995; and a record 
annual growth rate of more than 13% during the last ten 
years, a rate which in 2004 alone exceeded 20% and which is 
expected to be surpassed in 2005. These positive economic 
indicators were marred by an increase in the rate of 
inflation, which according to the Amir "rose considerably" in 
2004 and 2005. While the Amir did not reveal what was the 
actual rate of inflation, he did call on the Advisory Council 
to study the problem and forward proposals for resolving it. 
One of the factors fueling the rise in the rate of inflation 
are the soaring rents for commercial and housing properties 
in Qatar. Calling for the Advisory Council to look into the 
inflation "phenomenon," however, can be seen as a calculated 
move on the part of the Amir. On the one hand, he wants to be 
responsive to this growing problem, while on the other does 
not want to directly jeopardize the "good results" in Qatar's 
economic activities, to which the construction boom is a 
major contributor. 
 
5. (U) The Amir's remarks on the importance of embracing a 
culture based on competition, transparency and accountability 
as the elements of success in accordance with international 
standards could be a signal to government agencies on the 
coming changes Qatar must make in order to have a Free Trade 
Agreement that Qatar is eager to sign with the U.S. The Amir 
then highlighted a number of economic reforms which have 
already been undertaken to provide a suitable climate for 
investment, including the establishment of the Qatar 
Financial Centre to attract foreign financial institutions 
with the opportunity for 100% foreign ownership and allowing 
foreign investors to own up to 25% of the shares on the Doha 
securities market. 
 
6. (U) The Amir's remarks on Qatar's foreign policy were 
sparse at best. The Amir stated that strengthening relations 
with and integration among the GCC countries top Qatar's 
foreign policy agenda. The Amir then welcomed the new 
Sudanese government and the steps it took to end the conflict 
in Darfur, and he expressed hope that the peace process in 
"brotherly Somalia" would continue. These were the only two 
foreign countries mentioned by name in his address. 
 
7. (U) Absent from the Amir's speech was any mention of the 
pending parliamentary elections--this despite his emphasis on 
the importance of the recently promulgated constitution and 
the onset of its implementation, a milestone in Qatar's 
history. This suggests that the elections will not take place 
soon, not much of a surprise given that last June the mandate 
of the Advisory Council was extended for another year. Note: 
Post believes that elections will be held in early 2007. End 
note. 
 
8. (U) Overall, the Amir's speech was well received by the 
members of the Advisory Council and by those in the business 
and foreign communities. General sentiments were that the 
Amir provided a good sketch of Qatar's domestic and foreign 
policy agenda and forwarded a clear message for greater 
coordination and effort within and between the public and 
private sectors. 
 
9. (U) The Amir's speech was followed by that of the chairman 
of the Advisory Council, Mr. Mohamed Al-Kholaifi. In his 
speech, Al-Kholaifi praised the Amir's agenda. In particular, 
the chairman called attention to the advancement of women in 
leadership positions in the government and private sectors. 
He stressed that Qatari women are enjoying full political 
rights. With respect to international issues, the chairman 
expressed hope for a complete Israeli withdrawal from all 
Palestinian territories and a permanent and comprehensive 
peace settlement. Al-Kholaifi also condemned the Israeli 
occupation of Syria's Golan Heights and the Sheba farm area 
in Southern Lebabon. In referring to the situation in Iraq, 
Al-Kholaifi expressed his wish for unity among all Iraqis. 
UNTERMEYER