VZCZCXYZ0001
RR RUEHWEB

DE RUEHAD #0194/01 0400941
ZNR UUUUU ZZH
R 090940Z FEB 10
FM AMEMBASSY ABU DHABI
TO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHC/SECSTATE WASHDC 0263
INFO GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS ABU DHABI 000194 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL EFIN BEXP MARR AE
SUBJECT: SCENESETTER FOR TREASURY DEPUTY SECRETARY AND UNDERSECRETARY 
OF STATE FOR ECONOMIC AFFAIRS 
 
REF: ABU DHABI 55 
 
¶1. (U) This is a joint message from Embassy Abu Dhabi and Consulate 
General Dubai and complements the Mission's classified scenesetter 
(reftel). 
 
 
 
¶2. (SBU) Summary: The U.S. Mission to the United Arab Emirates 
(UAE) is pleased to welcome the February 14-16 visit of Deputy 
Treasury Secretary Neil Wolin and Under Secretary of State for 
Economic, Energy and Business Affairs Robert Hormats.  Our robust 
relations with the UAE focus on mutual strategic interests 
throughout the region, as well as our common interest in economic 
growth and prosperity here and at home.  Abu Dhabi Crown Prince 
Mohammed bin Zayed al Nahyan (MbZ) and UAE Foreign Minister 
Abdullah bin Zayed al Nahyan (AbZ) are part of a dynamic young 
leadership team that makes the UAE an active partner in a broad 
range of mutual goals, particularly regarding regional stability 
and security.  The Emirate of Abu Dhabi, which contains the 
eponymous federal capital and controls 93 percent of UAE petroleum 
reserves, is the focus of our regional security, defense and energy 
cooperation.  Dubai, business capital of the Gulf, is a key 
commercial center and a vital regional trade and transportation 
hub.  The UAE is the largest US export market in the Middle East. 
Like other countries open to the forces of globalization, the UAE 
was hard hit by the economic crisis; but cash-rich Abu Dhabi has 
been hurt less than Dubai which was more vulnerable given its high 
level of financial leverage.  End Summary. 
 
 
 
Regional Stability 
 
------------------ 
 
 
 
¶3. (SBU) In the past five years, the United Arab Emirates has 
emerged as one of the economic powerhouses of the region and 
attained a commensurate level of political influence.  The UAE has 
troops in Afghanistan and Commands the Multilateral Naval Coalition 
in the Southern Gulf, is an important political player in and donor 
to Pakistan, and its support is sought by leaders throughout the 
Middle East, and further afield.  Although a tiny country, 
geographically and demographically (of its six million residents, 
fewer than one million are Emirati citizens), the UAE punches well 
above its weight class in international circles.  In that context, 
U.S. relations are traditionally strong and continue to grow.  Key 
U.S. strategic interests throughout the region (involving Iran, 
Iraq, Pakistan, Afghanistan, Yemen, terrorism, economics, and more) 
form the core of our daily dialogue with the UAE. 
 
 
 
¶4. (SBU) Our broad bilateral relations have produced close military 
engagement and cooperation for two decades; key US military assets 
have access to UAE facilities, and continually plan and exercise 
together.  Coalition operations in Iraq, Afghanistan, and the Horn 
of Africa rely on that cooperation.  The UAE hosts more US Navy 
ships, principally at Dubai's Jebel Ali port, than any port outside 
the United States.  Our regional military logistics profile 
benefits from our UAE hosts who share various facilities throughout 
the country.  The UAE was the USG's largest Foreign Military Sales 
cash customer in 2009, now totaling 55 programs and $13 billion 
with similar amounts in commercial defense sales. 
 
 
 
¶5. (SBU) Concerned about regional proliferation, the UAE has been 
responsive on export control issues and we engage on that front 
regularly (including an ongoing review of efforts by a dedicated 
bilateral Counterproliferation Task Force).  As Abu Dhabi moves 
forward with a peaceful nuclear power program -- a sign of its 
ambitions and a real need for electricity to meet development goals 
-- it has taken clear steps to cooperate with the U.S. (including a 
Section 123 Agreement which entered into force in December 2009), 
and to prevent proliferation, offering an unambiguous regional 
counterpoint to Iran's nuclear model. 
 
 
 
¶6. (SBU) The UAE's continuing support for Afghanistan and Iraq is 
seen in financial support and debt relief, reciprocal visits, 
dispatching ambassadors, and ongoing efforts to use its political 
influence to bring about stability in both countries.  Similar 
 
 
focus on shared interests with regard to Israeli-Palestinian peace, 
Lebanon, Yemen, Pakistan and elsewhere keep our two nations closely 
engaged in daily strategic diplomacy.  Regular visits by Special 
Envoys Richard Holbrooke and Senator George Mitchell underscore the 
importance we place on coordination with the UAE on stability in 
Afghanistan/Pakistan and the Middle East peace process. 
 
 
 
¶7. (SBU) Regional leaders look to Abu Dhabi and Dubai for 
assistance and political support, while Washington and other 
Western capitals increasingly seek the UAE's views.  The strength 
of relations with the U.S. is evident in the string of high level 
USG visitors - including former President Bush in 2008, as well as 
multiple cabinet-level visits and senior Congressional delegations. 
 
 
 
 
The Leaders 
 
----------- 
 
 
 
¶8. (SBU) Abu Dhabi Crown Prince Mohammed bin Zayed al Nahyan (MbZ) 
is responsible for the formulation of military, security and 
economic policy for the federation.  Age 48, his only federal title 
is Deputy Supreme Commander of the UAE Armed Forces but MbZ plays a 
large role in the formulation of national security policy, as 
evidenced by his official visits to the White House, most recently 
in September 2009 accompanied by his brother, UAE Foreign Minister 
Abdullah bin Zayed al Nahyan (AbZ).  On the domestic agenda, MbZ is 
focused on building a modern state with world-class education and 
health care systems.  Internationally, the UAE broadly views many 
issues of regional stability and security as we do. 
 
 
 
¶9. (SBU) Like his older brother, 37 year old AbZ is a 
well-informed, pragmatic leader who often plays a helpful role in 
regional diplomatic engagement.  In late January 2010, AbZ joined 
the Secretary of State and other world leaders in London for 
multilateral talks on security and development in Yemen and 
Afghanistan. 
 
 
 
Economy and the World Crisis 
 
---------------------------- 
 
 
 
¶10. (SBU) The UAE is our largest export market in the Middle East. 
Over 700 U.S. companies operate here in a broad array of fields, 
with some 550 based in Dubai and its free zones.  The individual 
emirates retain significant economic autonomy, which Dubai 
aggressively asserted over the last several years.  Dubai leveraged 
its limited oil wealth (only 3-4 percent of its GDP) to build the 
infrastructure to grow and diversify its economy -- Dubai is the 
regional air transportation hub, and its Jebel Ali sea port is one 
of the largest in the world.  Encouraging direct foreign investment 
through innovative free zones and a range of business-friendly 
practices, Dubai focused on real estate development, 
infrastructure, trade and transportation, knowledge-based 
industries, tourism, and finance to sustain its growth.  Dubai has 
welcomed and courted U.S. businesses, and hosts many regional 
headquarters for non-oil, non-defense sector companies, including 
GM, GE, Microsoft, Ford, Caterpillar, Boeing, and Citicorp. 
 
 
 
¶11. (SBU) Despite its resource wealth and exponential growth, the 
UAE has been affected by the international economic crisis.  Stocks 
have been battered and consumer confidence has declined.  Dubai was 
particularly hard hit by the global economic downturn, leading 
ultimately to a near collapse in November 2009.  The UAE government 
has taken a number of steps to restore confidence, but the 2010 
economic outlook is weak. 
 
 
 
Components of the U.S. Mission 
 
------------------------------ 
 
 
¶12. (SBU) The U.S. Embassy in Abu Dhabi and the Consulate General 
in Dubai employ a total of 211 direct hire Americans and 201 
locally engaged staff.  28 U.S. government agencies and offices are 
represented and 90 DOD personnel are assigned to the mission.  A 
new consulate facility under construction in Dubai is scheduled for 
completion in 2011.  The State Department component of the mission 
remains understaffed, considering the depth and breadth of our 
bilateral relations and strategic regional interests, and the need 
to support interagency growth. 
 
 
 
¶13. (SBU) Created in summer 2006, the Iran Regional Presence Office 
(IRPO) in Dubai serves as the Department of State's principal 
window on Iran and functions to the degree possible as if it were 
located in Tehran.  IRPO's primary reporting focus is on political 
and economic developments inside Iran and the Iranian government's 
external policies.  IRPO keeps a relatively low profile in the UAE 
so as not to disrupt the UAE-U.S. bilateral relationship.  IRPO's 
recent reporting has focused on Iranian public reaction to the 
draft nuclear fuel agreement brokered by the International Atomic 
Energy Agency and the aftermath of the June presidential elections, 
to include the increasing factionalism within the government, the 
scope of discontent among the public and the government's effort to 
suppress the opposition.  Iranian press frequently accuses the U.S. 
of attempting to overthrow the Islamic Republic and often mention 
IRPO's presence in Dubai as the center of U.S. anti-regime 
activity.  It is often referred to as the "regime change office" 
amid claims that IRPO public diplomacy programs are a cover for 
"velvet revolution."  IRPO personnel have been mentioned by name in 
some Iranian press reporting as masterminding these efforts, and 
IRPO officers and contacts are intelligence targets.  The Iranian 
government in 2007 expressed its dissatisfaction with the UAE 
government that the UAE had allowed IRPO to open on UAE territory. 
UAE officials occasionally have queried U.S. officials about IRPO 
and its activities.  IRPO does not have contact with UAE officials. 
 
 
 
¶14. (SBU) The Dubai Media Hub represents and advocates on behalf of 
the U.S. Government on Arab television and radio programs on the 
full range of regional and global issues, at a moment's notice and 
in fluent Arabic.  The State Department's Regional Media Hubs 
Initiative was launched in September 2006 to address the need for a 
variety of official American faces and voices on media outlets in 
real time and on a regular basis.  The current Hubs - in Brussels, 
Dubai, Tokyo, South Africa and London - engage with regional and 
local media to strengthen the U.S. Government's presence and 
advocacy capabilities in those key regions.  The budget of the 
Dubai Hub, including salaries, is approximately $425,000 per year. 
Media appearances average approximately 25-30 per month on outlets 
including Al Arabiyya, Al Jazeera, BBC Arabic, France 24, and Al 
Hurra.  The Dubai Hub is staffed by two direct hire Americans - the 
Director and Deputy Director - both of whom are fluent Arabic 
speakers and who work remotely from home offices, television 
studios and on travel throughout the region.  The Dubai Hub works 
closely with CENTCOM regional advisers to coordinate messaging and 
appearances. 
 
 
 
¶15. (SBU) The Mission's consular sections in Dubai and Abu Dhabi 
serve the approximately 40,000 American citizens resident in the 
UAE, as well as the thousands of Americans who visit each month. 
Mission UAE processes over 75,000 applications for visiting visas 
and over 5,000 applications for permanent immigration to the United 
States each year.  Consulate General Dubai is the world's largest 
processing post for Iranian non-immigrant visa applicants. 
OLSON