US embassy cable - 03ABUDHABI2256

C O N F I D E N T I A L ABU DHABI 002256 
 
SIPDIS 
 
DEPT FOR NEA/RA, NEA/ARP, EB/CBA 
 
E.O. 12958: DECL 05/10/08 
TAGS: BEXP, BBSR, ECON, ETRD, EINV, TC 
SUBJECT:  UAEG LAYS OUT SPECIFIC PROPOSALS FOR IRAQ 
RECONSTRUCTION 
 
 
1.  (U) Classified by Charge D'Affaires Richard A. Albright 
for reasons 1.5 (B) and (D). 
 
2.  (C) Summary and comment: UAE Ministry of Finance 
Assistant Undersecretary for Revenue and Budget Khalid Al- 
Bustani laid out for Econchief 5/6 the UAEG's priorities 
for Iraq reconstruction.  A memo he provided highlighted 
three areas -- port and airport management, banking and 
finance, and oil -- in which the UAEG expects local 
companies to provide expertise and project management 
services to Iraq.  The UAEG is eager to get its foot in the 
door of Iraq reconstruction, and is likely to use its 
membership in the informal working group on Iraq 
reconstruction to promote local companies' participation. 
In fact, the UAE's representatives to the informal working 
group represent local institutions with a strong interest 
in the UAE's agenda: Central Bank Governor Sultan Al- 
Suweidi and Finance Minister of State Mohammed Khirbash 
speak to the UAE's muscle in financial services, and Dubai 
Ports Authority's enigmatic chairman Sultan Bin Sulayem 
highlights DPA's stellar record of ports management at home 
and abroad.  End summary and comment. 
 
Port and Airport Management 
--------------------------- 
 
3.  (C) The UAE proposes that local companies be considered 
for the construction and management of three free zones in 
southern, central, and northern Iraq, as well as for the 
management of the major Iraqi airports.  (Note: The UAE has 
12 free trade zones, half of which are in Dubai.  End 
note.)  The memo also suggests that UAE companies could 
reorganize the navigation routes and dredge the channels to 
Umm Qasr using state-of-the-art technology, electronic 
mapping, and positioning equipment.  Dubai Ports Authority 
has offered to provide a customs area and warehousing 
facilities in Jebel Ali specifically for shipment of goods 
to Iraq. 
 
Banking, Finance, and Insurance 
------------------------------- 
 
4.  (C) The UAE Central Bank is prepared to provide 
training to Iraqi Central Bank officials in banking 
operations, banking supervision and examination, treasury 
operations (including reserve management and foreign 
exchange and monetary policy instruments), and in the 
management of a network of ATMs, POS and PC Banking.  The 
UAEG also offers to provide training in anti-money 
laundering detection and investigation -- an area in which 
the UAEG has made tremendous strides since 2000.  The memo 
also suggests that the UAEG repatriate a number of Iraqi 
bankers currently working in the UAE in order to provide 
immediate, experienced human capital to the Iraqi financial 
sector. 
 
Oil Sector 
---------- 
 
5.  (C) In more vague terms, the memo suggests the UAE's 
willingness to assist in the reconstruction of the Iraqi 
oil sector, particularly in the areas of exploration, 
refining, processing, distribution and management.  The 
UAEG is cognizant of the sensitivities related to the 
management of the Iraqi oil sector, and probably will wait 
for a clearer picture of governance to emerge before 
offering more specific proposals. 
 
Albright