US embassy cable - 03ABUDHABI2176

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UAE FORMALLY ANNOUNCES INTENTION TO ASSUME CHAIRMANSHIP OF ARBIFT

null
Diana T Fritz  05/24/2007 04:21:50 PM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
CONFIDENTIAL

SIPDIS
TELEGRAM                                             May 05, 2003


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 2176 - UNKNOWN)         

TAGS:     EFIN, ETTC, PREL, PGOV                                 

Captions: None                                                   

Subject:  UAE FORMALLY ANNOUNCES INTENTION TO ASSUME CHAIRMANSHIP
           OF ARBIFT                                             

Ref:      None                                                   
_________________________________________________________________
C O N F I D E N T I A L        ABU DHABI 02176

SIPDIS
Laser1:
    INFO:   FCS 
CXABU:
    ACTION: ECON 
    INFO:   P/M DCM POL AMB 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: DCM:RAALBRIGHT
DRAFTED: ECON:TEWILLIAMS
CLEARED: NONE

VZCZCADI259
OO RUEHC RUEATRS RUEHZM
DE RUEHAD #2176 1251011
ZNY CCCCC ZZH
O 051011Z MAY 03
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9791
INFO RUEATRS/TREASURY DEPT WASHDC IMMEDIATE
RUEHZM/GCC COLLECTIVE

C O N F I D E N T I A L ABU DHABI 002176 
 
SIPDIS 
 
STATE FOR EB, NEA/ARP, NEA/RA, EB/ESC/ESP 
STATE ALSO FOR INL/C - CASSARA 
TREASURY FOR OGC - AUFHAUSER 
TREASURY ALSO FOR NILMINI GUNARATNE 
TREASURY PASS OFAC FOR NEWCOMB 
 
E.O. 12958: DECL: 05/05/07 
TAGS: EFIN, ETTC, PREL, PGOV, LY, TC 
SUBJECT: UAE FORMALLY ANNOUNCES INTENTION TO ASSUME 
CHAIRMANSHIP OF ARBIFT 
 
REF:  A) 02 ABU DHABI 5714 (NOTAL) 
 
      B) 02 ABU DHABI 3406 
 
1. (U)  CLASSIFIED BY DCM RICHARD A. ALBRIGHT FOR 
REASONS 1.5 (B,D). 
 
2. (C)  The UAE last week moved one step closer to 
its goal of assuming total managerial control of 
the Arab Bank for Investment and Foreign Trade 
(ARBIFT) by announcing at the annual general 
meeting (AGM) in Abu Dhabi its formal intention to 
assume the chairmanship of the Board of the bank. 
A new Board of Directors was selected at the AGM; 
that body will meet shortly to choose the chairman 
-- who will be an Emirati.  UAE Finance Ministry 
Undersecretary Khalid Al-Bustani told Econchief May 
5 that he expects the Board will meet within the 
next few weeks. 
 
3.  (C)  Comment:  Day-to-day management of ARBIFT 
is completely controlled by Emirati nationals. 
However, the chairmanship of the Board of 
Directors, while largely symbolic, has until now 
been held by a Libyan.  The bank, which is owned 
42.5 percent by Libya, 42.5 percent by the UAE and 
15 percent by Algeria, has since the 1990s been 
designated by OFAC as a Libyan entity.  Currently, 
more than 120 million USD of ARBIFT money (none of 
it payable to or from Libyan entities) is frozen in 
the USA.  The UAEG is eager to seek the 
release/licensing of these funds and hopes that 
replacing the chairman of the board will initiate 
meaningful discussions on a long-term solution to 
the ARBIFT issue which would see the SDN status 
removed and, eventually, Libyan equity 
participation in the bank diluted significantly. 
 
Wahba 

Author: Radek "Mrkva" Pilar, Twitter, Mail/XMPP: mrkva twistedThing mrkva.eu

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