VZCZCXRO6219
PP RUEHDE
DE RUEHJI #0227/01 0800820
ZNY CCCCC ZZH
P 210820Z MAR 06
FM AMCONSUL JEDDAH
TO RUEHC/SECSTATE WASHDC PRIORITY 8935
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 1315
RUEHFR/AMEMBASSY PARIS PRIORITY 1387
RUEHRH/AMEMBASSY RIYADH PRIORITY 6287
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 JEDDAH 000227 
 
SIPDIS 
 
SIPDIS 
 
RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARPI; 
PARIS FOR ZEYA; LONDON FOR TSOU 
 
E.O. 12958: DECL: 03/13/2015 
TAGS: KISL KWMN PREL SA
SUBJECT: CG'S DISCUSSION WITH ALIREZA BUSINESSMEN 
 
REF: A. 05 JEDDAH 3997 B. JEDDAH 128 
 
Classified By: Consul General Tatiana Gfoeller, 
for reasons 1.4 (b) and (d). 
 
¶1.  (C) On March 13, Consul General and Pol/Econ Chief met at 
Xenel Industries with  Executive Director Sheikh Khaled 
Alireza, his son and Managing Director, Aamer and General 
Manager and American citizen David Joury.  Khaled Alireza 
told CG that Xenel is producing a television public service 
announcement condemning extremism and terrorism.  Alireza 
also described Xenel Industries efforts to promote 
women-owned small businesses and women artisans.  Xenel is 
preparing to issue a company sexual harassment policy. 
 
XENEL INDUSTRIES AND THE ALIREZA FAMILY 
 
¶2.  (C) On March 13, Consul General and Pol/Econ Chief 
visited the headquarters of Xenel Industries.  Xenel is the 
corporate successor of one of the oldest trading houses in 
the Middle East.  The Alireza's are unusual among Arab 
merchant families because of their Iranian origin.  The 
family became established in Jeddah in the mid-19th century 
when Xenel Alireza formed a trading company in Jeddah. 
Through successful ventures and partnerships the company 
prospered and incorporated as Xenel Industries in 1973. 
Today, the corporation consists of a number of companies 
operating in Saudi Arabia, Pakistan, Singapore, and the 
United States.  Its businesses include radar systems, air 
traffic control installations, cable networking systems, 
import and export of bulk materials, health care, electrical 
power generation, construction, oil and gas exploration, and 
real estate development.  They are major partners in the King 
Abdullah Economic City (KAEC) project.  Marwan Alireza 
manages the U.S. based sister-company.  Mohammed Alireza is 
the Chairman.  Another member of the family, Abdullah Zainal 
Alireza is Minister of State and a senior adviser to King 
Abdullah.  The family is linked by marriage to the Zahid and 
Bin Laden Families.  Many of the family were educated in the 
United States, including no less than 14 who attended the 
University of California, Berkeley. 
 
XENAL'S PUBLICITY CAMPAIGN CONDEMNING TERRORISM 
 
¶3.  (C) Alireza informed the CG that Xenel is producing a 
public service announcement condemning terrorism and 
religious extremism that will be televised in coming weeks. 
Immediately after the terrorist attacks in 2001, Xenel was 
the first Saudi company to place announcements in newspapers 
denouncing the attacks.  Alireza believes that in 
controversial times, it is important to repeat the message 
against extremism.  They hope that this television message 
will have wider reach. 
 
XENEL INSTRUCTS ALL EMPLOYEES IN PROPER BEHAVIOR BETWEEN SEXES 
 
¶4.  (C) In other portions of the conversation relating to 
women and economic development, Alireza described some of the 
activities Xenel sponsors to prepare and support women in 
business.  He reminisced that at one time, Xenel employed 
more than 12,000 women in its health care and medical 
facilities until it was forced to dismiss them, because 
religious authorities objected to the interaction of the 
sexes.  However, Xenel once again employs a substantial 
number of women in its administrative operations.  The CG was 
introduced to a number of them, who are employed in the 
headquarters building.  Unlike many large businesses 
employing women, Xenel does not segregate women from men. 
General Manager David Joury informed the CG that this week 
Xenel would release a written company-wide policy covering 
sexual harassment.  This is apparently a first for a Saudi 
company and a very important step in smoothing work-place 
relationships between the sexes.  As noted in earlier cables 
(reftels) and media reports, since men and women are 
separated from childhood, the sexes simply do not know how to 
deal with each other. 
 
XENEL PROMOTING WOMEN'S BUSINESSES 
 
¶5.  (C) The Alirezas continued by describing some of their 
efforts to foster women owned Small and Medium-Sized 
Businesses (SME's) outside the company.  Khaled Alireza 
observed it was important, not only for the Saudi economy, 
 
JEDDAH 00000227  002 OF 002 
 
 
but for his company to encourage the development of small 
businesses.  It is from these SME's that his company hires 
experienced, capable employees, thus furthering Saudization. 
Xenel provides seed-money and financing to groups and 
individuals, including women, who present an attractive 
business idea.  Alireza stressed that the company makes a 
particular effort to encourage women artisans to start 
businesses.  He also cited the example of a women 
university-graduate whom they sent to England for business 
training.  This woman now runs a prosperous public relations 
firm in Jeddah. 
Gfoeller