AQABA AUTHORITIES CONFRONT SOCIAL, REGIONAL

UNCLAS SECTION 01 OF 03 AMMAN 002554

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ASEC EAID ECON JO KISL KPAL KWMN PGOV PREF
SUBJECT: AQABA AUTHORITIES CONFRONT SOCIAL, REGIONAL
CHALLENGES

REF: AMMAN 2553

--------------
SUMMARY
--------------


1. (SBU) Despite significant achievements in the three
years since the creation of the Aqaba Special Economic Zone
(ASEZA),major social and regional security issues remain.
Commissioners say one of their greatest challenges is
managing the delicate balance of economic openness and the
needs of a socially conservative society. ASEZA authorities
acknowledge that communication with Aqaba residents must take
higher precedence as they move into the next phase of the
development plan, and probably the biggest unanswered
question is the fate of Aqaba's poorest neighborhood,
Shalala. Given Aqaba's increasing strategic importance and
growing regional instability, Commissioners say that
enhancing security is of paramount importance as well.
ASEZA's establishment is unique for Jordan, and represents
the most ambitious experiment underway to realize King
Abdullah's vision of economic prosperity and political and
social advancement. It also presents a snapshot of the
broader challenges Jordan faces as it attempts to liberalize
economically within a socially conservative society, and
within an increasingly volatile region.

This is the second of two messages resulting from a recent
visit by ECON, PA, POL and USAID officers to Aqaba. The
first assesses the progress of ASEZA's economic development
plan thus far and its ongoing challenges. End Summary.

--------------
BALANCING OPENNESS AND SOCIAL CONSERVATISM
--------------


2. (SBU) The Aqaba Special Economic Zone Authority (ASEZA)
has made significant gains in three years, but officials
acknowledge that the thorniest problem it faces is ensuring
respect for conservative social norms while creating an
environment conducive to economic development. ASEZA is
trying to deal carefully with sensitive social issues -- such
as whether to segregate or integrate public beaches, for
example -- in order to avoid inflaming local sensitivities.
However, the contrast in cultures is sometimes unavoidable,
as is evident with recent influxes of Eastern European
tourists, particularly Hungarians, who view Jordan as a cheap
but exotic tourist destination. Besides snide comments about
scantily clad tourists traipsing through town and the
inability of veiled local women to enjoy the beach in
privacy, EmbOffs did not encounter significant concerns from
local residents about the "clash of cultures."


3. (SBU) The Commissioners, businesspeople, and Aqaba's
politicians note that the city is still in an early stage of
its development, and things could change as more foreign
tourists flock to Aqaba -- which underscores the importance
of handling sensitive issues carefully. Local businesspeople
say that their conservative society can mesh with the
openness required of a resort town catering to foreign
investors and tourists. Aqaba's port location has given the
residents unique exposure to outsiders that other parts of
Jordan have not experienced.


4. (SBU) ASEZA Deputy Chief Commissioner and ADC Head Imad
Fakhoury acknowledges that time is not on the Commissioners'
side because people are impatient and complain when they do
not feel immediate benefits on a personal level. He says
that ASEZA officials subscribe to the "trickle-down theory"
of economics, in that the initial benefits of the development
plans are intended to benefit the wealthy, but eventually,
tangible benefits will filter down to the lower rungs of
society. However, he recognizes that the average low
salaries among the general population prevent many ordinary
Jordanians from enjoying the new restaurants and shops, and
he acknowledges resentment for this exists among some
Jordanians (inside and outside of Aqaba).

--------------
ENSURING THAT WOMEN AND YOUTH BENEFIT
--------------


5. (SBU) Liali Nashishibi, President of the Aqaba Business
Professional Women's Club and chief of public relations at
the Movenpick Hotel, told EmbOffs that the conservative
nature of Aqaba's society, particularly norms regarding
women's role in the workplace, could affect the integration
of women into the workforce. She said that most Western
hotels, including the Movenpick, will not hire veiled women
for jobs that require interaction with hotel guests. She
believes more training programs focusing on integrating women
into the various parts of the workforce will be crucial to
support ASEZA's development plan. A dearth in funding for
such programs -- which she griped has often been focused on
the needs of Amman-based NGOs -- has always been a major
stumbling block.


6. (SBU) Dr. Mozfi Amyan, Dean of al-Balqa' College of
Aqaba, believes that expanding educational opportunity for
Aqaba's youth -- especially women -- is key to ensuring the
population is integrated into the development process.
Al-Balqa' established the Aqaba campus in 2001, and is the
only institution of higher learning in the city. Dr. Amyan
lauds the efforts to revitalize Aqaba's tourism sector and
accordingly, has restructured the college's curriculum to
better prepare students to enter the service industry. The
school currently accommodates 450 students in two rented
buildings, and has submitted a proposal to the Planning
Ministry to build a larger campus, which will include
facilities to accommodate students of hotel management and
tourism. He said Aqaba residents have been hearing for
"years" that an American University modeled after those in
Beirut and Cairo will be built in Aqaba, but they know
nothing concrete about the plan.

--------------
AQABA'S POOR: WHAT TO DO WITH SHALALA?
--------------


7. (SBU) In the midst of the growth and symbols of
prosperity in Aqaba, there lies an economically-depressed,
teeming community called Shalala, which is comprised mostly
of Palestinian refugees from Gaza. Unlike refugees from the
West Bank, Gazan refugees do not hold Jordanian citizenship
and are not eligible for GOJ services such as health care and
public schools. According to the GOJ, the total refugee
population in Aqaba is 16,500 registered with UNWRA, plus
7,000 not registered (some refugees also live in the "old
city" separate from Shalala). However, because of
long-standing budget issues, UNWRA does not provide the Aqaba
refugee community with services there.


8. (SBU) During a visit to several small businesses in
Shalala, we heard no criticism of the wider development plan
for Aqaba; we heard satisfaction with the physical changes
they see in their city. However, their fate remains unclear.
ASEZA has plans to relocate the residents of Shalala to a
projects-style housing complex in another area of the city
called Harahfiah. A tender for project management of the
1800-unit complex has already been announced and ASEZA
expects soon to announce the manager, who in turn will put
out a tender for construction. The local community does not
appear well informed about the housing plan. Shalala rests
on prime real estate with an exceptional view of the Gulf,
and ASEZA is considering transforming the area into a tourist
attraction filled with souvenir shops and small restaurants,
in order to preserve its "old Aqaba" character, according to
one ASEZA official.


9. (SBU) Until now, it appears that no one in ASEZA has
consulted with Shalala residents for their input. Shalala
residents say that they have heard bits and pieces on
television (although they did not elaborate about what they
heard) and did not express any concerns. Aqaba business
developer Ziyad al-Shweikh said the details of the final plan
for Shalala have not been announced, though speculation in
the community is that they may be moved to high rise
apartments near the airport, a prospect that he believes will
be unacceptable to most residents once ASEZA tries to
implement the plan. He explains that many are simple people
from rural backgrounds that would fight leaving their homes
if they thought their lifestyle would change. Many breed
farm animals and have small businesses that they would not be
able to maintain in an apartment setting. Despite the dismal
living conditions, many in the 50-year-old community would be
loathe to leave their neighborhood made up of extended
family, neighbors, and friends.


10. (SBU) Al-Shweikh warns that the lack of communication
with members of the Shalala community as ASEZA develops a
plan for Shalala residents provides an opportunity for ASEZA
critics to make political hay of the issue. Although he
doesn't believe an extremist element exists in Aqaba, he
warns that open discussion with the Shalala community about
its future is imperative to prevent the Islamists from
emerging as their key advocate. Aqaba MP and IAF member
Shaykh Bader al-Riyati is one of the few outspoken advocates
for the poor of Aqaba. Without alternative support, the
people will increasingly look to him for help. Many of our
interlocutors emphasized that Shaykh al-Riyati in particular
works tirelessly to advocate on behalf of the poor in Aqaba
and that he enjoys a good reputation among the population.
For his part, Shaykh al-Riyati acknowledges he spends as
little time as possible in Amman (just when Parliament is in
session) so that he can be available for his constituents in
Aqaba, who seek his help at all hours of the night. He told
EmbOffs that he is forced to address pleas for help
(particularly about jobs) that the authorities seem
ill-equipped to handle.
-------------- ---
REGIONAL POLITICS, SECURITY CONCERNS INESCAPABLE
-------------- ---


11. (SBU) Several of our interlocutors emphasized that the
potential for Aqaba -- and Jordan as a whole -- would be
enhanced exponentially if regional stability could be
achieved, especially with regard to the Palestinian-Israeli
conflict. They say ongoing instability in Iraq also hurts
ASEZA's efforts to market Aqaba as a launching point into the
Iraqi market.


12. (SBU) The increased economic activity in Aqaba enhances
the strategic importance of the port, and regional realities
combine to make security a growing priority for ASEZA. Soror
says the port is in compliance with IMO security regulations,
but that enhanced security measures, including beefing up the
military security presence, are under consideration for the
port area. Bilal Bashir, Commissioner for Environment,
Regulation and Enforcement, says that ASEZA is considering
wide security measures for the entire Aqaba region.
Israeli-Jordanian border and maritime security cooperation
remains excellent, but Fakhoury says that Israeli security
concerns have prevented Israel thus far from signing on to
ASEZA's vision of inaugurating Aqaba's international airport
as a joint "peace airport."

--------------
COMMENT
--------------


13. (SBU) ASEZA's establishment is the most ambitious
experiment underway in Jordan to realize King Abdullah's
vision of economic prosperity and political and social
advancement. It also presents a snapshot of the broader
challenges Jordan faces as it seeks political liberalization
in a socially conservative society and in a volatile region.
ASEZA will have to handle sensitive social issues and improve
communication with the local community to give them a sense
of "ownership" in ASEZA and to offset the Islamist influence
in Aqaba.
Visit Embassy Amman's classified web site at
http://www.state.sgov.gov/p/nea/amman or access the site
through the State Department's SIPRNET home page.
GNEHM