VZCZCXRO6031
RR RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHAD #0761 1820509
ZNR UUUUU ZZH
R 300509Z JUN 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 1141
INFO RUEHEE/ARAB LEAGUE COLLECTIVE

UNCLAS ABU DHABI 000761 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM AE
SUBJECT: UAE PRESIDENT KHALIFA GIVES RARE INTERVIEW -- MINIMIZES UAE 
SECURITY THREAT 
 
¶1. (SBU) SUMMARY.  President Sheikh Khalifa bin Zayed Al Nahyan, who 
rarely addresses the press, gave an interview with Lebanese 
newspaper Al Nahar June 28, touching on UAE security, Lebanon, UAE 
policy toward Iran, sovereign wealth funds, Arab labor in the UAE, 
nuclear cooperation, and the proposed new UAE embassy in Iraq.  All 
UAE papers emphasized Khalifa's refutation of recent U.S. and U.K. 
security cautions.  End summary. 
 
¶2. (SBU) REFUTING SECURITY WARNINGS.  In an interview published June 
28 in the Lebanese "Al Nahar" newspaper, President Khalifa said the 
UAE is safe and secure: not only because of effective security 
measures, but also due to a high standard of living for residents of 
the UAE.  He said warnings circulated by "some foreign diplomatic 
missions in the UAE" reflect the custom of reacting to "any piece of 
information or rumor that reaches them, regardless of its validity." 
 (Comment: The President was clearly referring to the security 
warnings from the U.S. and U.K. missions issued in mid-June.  The 
following day, local papers published testimonies of local experts 
who explained that the embassies were "crying wolf."  One paper even 
reported that the U.K. based its warning solely on a conversation 
overheard from two drunk men talking about a hypothetical terror 
attack.  Such reporting may be part of a coordinated campaign to 
discredit the security warnings.  End comment.)  The headlines of 
all four English-language newspapers June 29 focused on Khalifa's 
minimizing security concerns: e.g. "Terror warnings 'normal practice 
to deal with rumors'" and "UAE is secure and stable: Khalifa." 
 
¶3. (U) LEBANON.  Khalifa welcomed the new Lebanese president to 
visit the UAE and expressed his own desire to visit Lebanon to 
congratulate the new leader.  Khalifa praised the Emir of Qatar for 
his mediation in the Doha agreement.  He said the UAE never ceased 
support to Lebanon, not only out of self-interest but in performing 
its responsibility as an Arab sister country.  When asked if the UAE 
encourages private sector investment in Lebanon, Khalifa said the 
government does not influence choices of the private sector, and 
that the main factor in investment is security and stability -- when 
these factors are present, Arab and foreign countries will be ready 
to invest. 
 
¶4. (SBU) SOVEREIGN WEALTH FUNDS.  When asked about Abu Dhabi's 
sovereign wealth funds -- estimated at over US$800 billion -- 
Khalifa said the total value of the fund was exaggerated.  Regarding 
the establishment of new funds to help Arab countries, Khalifa said 
there are already national and regional funds worth billions of 
dollars throughout the Middle East, and that investment depends on 
political and administrative improvement in recipient countries. 
 
¶5. (SBU) IRAN.  Regarding Iran's potential nuclear weapons program, 
Khalifa said the UAE is concerned about nuclear weapons in the 
region; however, it is the right of all states to use nuclear power 
for peaceful purposes.  (Comment: While noting concerns about Iran's 
nuclear ambitions, the UAE is planning an internationally supported 
peaceful nuclear energy program with careful mechanisms to avoid 
allegations of proliferation.  End comment.)  When asked how the UAE 
would respond if Iran were to use UAE banking channels in violation 
of financial sanctions, Khalifa said the UAE will cooperate with 
international rulings, as the UAE did in the case of Saddam 
Hussein. 
 
¶6. (U) ARAB LABOR.  Khalifa denied any policy to exclude Arab labor 
from the UAE, explaining that foreign (non-Arab) labor is cheaper 
and therefore more utilized at present.  Khalifa noted that many 
managers and skilled workers in the UAE are Arab, and hoped the 
growing economy would provide more jobs for them in the future. 
 
¶7. (SBU) UAE EMBASSY IN IRAQ.  The press also noted Khalifa's 
comments on Iraq.  Acknowledging the UAE's decision to reopen an 
embassy in Baghdad, Khalifa noted that the UAE's relationship with 
Iraq "never stopped" even when the embassy was closed, and urged 
greater Arab involvement in Iraq to "undermine efforts to isolate 
Iraq from its Arab neighbors" (a clear reference to countering 
Iranian influence). 
 
¶8. (SBU) Comment.  The rationale for granting this interview is not 
clear, as it is fairly rare for Khalifa to speak directly (and at 
length) with the press.  If chosen headlines are any indication, one 
impetus may have been the opportunity to assuage security concerns 
in light of the U.S. and U.K. warnings.  End comment. 
 
QUINN