This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 009434 
 
SIPDIS 
 
SIPDIS 
 
DHAHRAN SENDS 
PARIS FOR ZEYA, LONDON FOR TSOU 
 
E.O. 12958: DECL: 12/20/2015 
TAGS: PGOV ECON KDEM SA
SUBJECT: EP TRIBAL FAMILY FLEXES ITS POLITICAL AND ECONOMIC 
MUSCLE 
 
REF: RIYADH 6859 
 
Classified by Consul General John Kincannon for reasons 1.4 
(b) and (d). 
 
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Summary 
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¶1.  (C) Four brothers from the Al-Dossari family outlined to 
the CG and Consulate staff their family's business and 
political enterprises.  Yousef, Khalifa, Khalid, and Mohammed 
Al-Dossari, together with two other brothers, run a company 
that has expanded from supplying auto parts to managing 
international investment and real-estate holding companies 
from their Eastern Province (EP) base.  Their foray into 
politics began earlier this year, when Khalifa received the 
most votes of any candidate for the metropolitan Dammam 
municipal council.  Yousef, the eldest brother, is organizing 
a group to challenge the slate of powerful current head of 
the EP Chamber of Commerce & Industry (EPCCI), Abdul Rahman 
Al-Rashed, in the February elections to the EPCCI.  The 
brothers appear to be activists:  "we need to engage the 
government," said Yousef.  Western-educated, with ample 
financial resources, formidable campaign skills, and strong 
relationships with EP tribal groups, the Dossaris are a force 
to be reckoned with in the EP.  End summary. 
 
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From Car Parts to Financial Services 
------------------------------------ 
 
¶2.  (C) CG and PolOff met with Yousef, Khalifa, Khalid, and 
Mohammed Al-Dossari on December 19 at their offices on the 
outskirts of Dammam.  The Dossari brothers own Yousef Ahmed 
Rashid Al-Dossari & Brothers Company and Al Dammam 
Development.  Yousef Al-Dossari & Brothers Company began in 
the auto parts and service business (primarily dealing in 
General Motors products) but has since evolved to focus on 
investments, particularly in the financial services sector, 
while Al Dammam Development focuses on real estate.  Khalid 
and Mohammed, who have primary operational responsibility for 
the companies, outlined some of their holdings, all owned in 
partnership with other investors and companies:  three 
companies in Bahrain, including a bank and the first mortgage 
company; a USD 600 million joint venture with a Kuwaiti 
partner in consumer finance; a mortgage company and bank in 
Riyadh; etc. 
 
¶3.  (C) The company is investing in the Saudi stock market 
but hedging its bets through holdings in real estate and in 
investments outside of Saudi Arabia, including the Gulf 
countries (except for Qatar, which "doesn't like the Saudis") 
and China.  "We consider the Gulf as one large market 
dependent on the price of oil," Khalid explained, "so we see 
investing in China as a way of diversifying out of the Gulf." 
 The brothers believe that investment banking will provide 
excellent opportunities for companies that enter the market 
quickly.  They are looking for an American partner for a USD 
1 billion investment in the sector but say that U.S. 
companies are reluctant because of concerns with "procedures 
and regulations."  Citigroup and HSBC are said to be looking 
to enter the investment banking sector directly, the brothers 
said, whereas BNP Paribas and a Japanese bank were looking to 
enter with local partners. 
 
----------------------------------------- 
Dreams and Realities for a Council Member 
----------------------------------------- 
 
¶4.  (C) The conversation turned to Dammam's run-down 
infrastructure and other regional development problems, and 
PolOff suggested that Khalifa, recipient of the most votes in 
the election for the municipal council of metropolitan 
Dammam, was in a good position to tackle these problems.  "It 
turns out we are just editors," Khalifa replied ruefully, 
referring to the council members and to their limited 
authority to make non-binding recommendations to the mayor; 
"I am beginning to wonder why I ran."  His brother Yousef was 
more optimistic:  "If the council elects a good president," 
he said with a smile, nodding at Khalifa, "we will see what 
they can do.  We need to give the government confidence that 
we will help develop the area in the best way, and we need to 
speak up." 
 
¶5.  (C) Khalifa went on to share some of his visions for 
Dammam:  "I was thinking to build up a city like a Dubai or 
Houston, from what we already have or even from reclaimed 
land.  We need to build a real downtown."  Another part of 
his vision involved developing a marina and waterfront area 
for the city, modeled on successful projects he had seen in 
the United States. 
 
-------------------------------------------- 
The Dossari Electoral Machine Gears Up Again 
-------------------------------------------- 
 
¶6.  (C) The CG said he understood that Yousef was going to 
run for the EPCCI elections in February.  Yousef confirmed 
that he was indeed leading a slate of candidates to challenge 
the "Ta'awwun" slate of Abdul Rahman Al-Rashed, the powerful 
current president of the EPCCI.  "Don't get me wrong - Abdul 
Rahman is a friend, and when this is all over he will still 
be a friend.  But the problem with him is that he is too 
closed.  He does not want to spend any money.  He has too 
many people sitting on the Board doing nothing.  What have 
they done in four years?  It is time for a new generation 
with vision."  Launching with animation into his campaign 
platform, he ticked off the major issues facing the EP 
business community:  "Saudization, the impact of the WTO 
accession, labor, development, mergers."  If elected as 
president of the Board, Yousef said, he would devote himself 
entirely to running the chamber as an activist, in contrast 
to Al-Rashed, whom he described as devoting too little time 
to the Chamber.  If elected, Yousef said he would actively 
lobby the government for changes that would improve the 
business climate, especially for small and medium-sized 
businesses. 
 
¶7.  (C) Asked by PolOff if any women were on his slate, 
Yousef said no.  "I began planning my slate eight months ago, 
building a coalition and developing a platform" he said. 
"The government should have announced that women could run 
further in advance."  He went on to outline his campaign 
strategy, which includes extensive outreach throughout the 
EP.  "We will host a dinner here for 3,000 small businessmen 
here this week, and we will do it everywhere in the province, 
all the way to Hafr Al-Batn.  Abdul Rahman will now know what 
to do," he continued with a grin.  "Remember, he does not 
like to spend money."  The Dossari brothers attributed 
Khalifa's success in the municipal council elections to a 
well-planned election campaign that included massive spending 
("We don't tell people how much, but it was a lot," Mohammed 
said), personal outreach, and the general popularity of the 
Dossaris, perhaps the EP's largest tribe.  "After Khalifa won 
in the elections, we took out an ad in the paper inviting all 
of his supporters to a dinner in Dammam," Yousef said. 
"Seven thousand came.  And even if they hadn't found dinner, 
we were there to shake their hands." 
 
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Comment and Tribal Bio Note 
--------------------------- 
 
¶8.  (C) The Ahmed Rashid branch of the Dossari family is 
clearly one to be reckoned with.  We were impressed with the 
business acumen of the four brothers we met, three of whom 
were educated in the U.S. (as were the two other brothers we 
did not meet).  Their political skill is perhaps even more 
impressive:  they seem to have melded western-style campaign 
tactics of planning, developing a platform, and managing a 
media campaign with Saudi values of personal availability and 
tribal hospitality.  In the past, prominent local businessmen 
seem to have contested election to the EPCCI board more for 
the prestige of winning than for the chance to lead the 
chamber (reftel).  Yousef's slate may represent a positive 
change to that trend.  "In the last three years, can you name 
one Saudi minister Abdul Rahman has brought down from 
Riyadh?" Yousef asked.  "We should be doing that all the 
time." 
 
¶9.  (C) The Dossaris are a tribe originally from Wadi 
Al-Dawaser, a relatively fertile area in the Najd.  Several 
centuries ago, in response to a severe drought, part of the 
tribe moved east, settling on the Saudi coast and in 
neighboring Gulf states, fortuitously and coincidentally in 
oil-rich areas - many Dossaris now work at Aramco, including 
Aramco CEO Abdullah Jumaa'.  There is currently no recognized 
leader to the Dossari tribe in the EP, although, according to 
Yousef, the tribe would select a leader during a major 
crisis.  End comment and tribal bio note. 
 
(APPROVED:  KINCANNON) 
GFOELLER