JEDDAH ECONOMIC FORUM CONCLUDES WITH OPTIMISM

UNCLAS SECTION 01 OF 03 JEDDAH 000197

SIPDIS

SIPDIS

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E.O. 12958: N/A
TAGS: ECON KISL PREL SA
SUBJECT: JEDDAH ECONOMIC FORUM CONCLUDES WITH OPTIMISM

REF: A. JEDDAH 140

B. JEDDAH 145


1. SUMMARY: On February 13, the Jeddah Economic Forum (JEF)
concluded its three-day run after a variety of speeches
promoting the Saudi economy as an economy no longer based
solely on oil. A recurrent subtext of the talks was the fact
that Saudi Arabia was becoming integrated into a global
economy. A number of international celebrities spoke on
information technology (IT),tax policy, and the place of
Arabs in the international community. Western speakers were
frequently confronted by questions relating to Palestine,
Iraq, and visas. One session emphasized the importance of
environmental preservation. The role of women in JEF and the
Saudi economy was a prominent subject of discussion. END
SUMMARY.

SAUDI ARABIA IS GROWING AND OPENING


2. The Jeddah Economic Forum (JEF) continued on February 12
and 13. Few of the speeches given by a diverse group of
Saudi and foreign speakers could actually be said to have
conformed to the announced theme: "Seeding Potentials for
Economic Growth: Honoring Identity and Celebrating Common
Grounds," but were well-received by the large audience
nevertheless. If any theme or general trend was evident in
the numerous talks it would probably be: the Saudi economy
is growing rapidly, the world is interested, and Saudi Arabia
is now looking outwards. A Saudi contact involved in the
expansion of the Jeddah Islamic Port, who has frequently
attended JEF, commented that everything seemed much more open
and outward-looking this year compared to previous years, and
he hoped it meant that Saudi Arabia was really opening to the
world.


3. If one discounts the addresses by the "celebrity"
speakers, the majority of the sessions stressed the growth of
the non-oil sector of the Saudi economy and the prospect for
trade and investment with the rest of the world. As an
example, Fawaz Al Alami and two Americans associated with his
negotiations on behalf of Saudi Arabia's accession to WTO
offered a perspective on "Saudi Arabia Beyond the WTO." This
well-attended seminar promoted foreign direct investment
under WTO and described the potential changes in the Saudi
economy. Other speeches and questions emphasized trade and
business opportunities. COMMENT: Although the initial Saudi
response to WTO accession was muted, there now seems to be
growing realization that WTO may offer substantial economic
benefits and Saudis are actively looking abroad for both
trade opportunities and investment partners for projects
within the Kingdom. Furthermore, the many foreigners in
attendance indicate that they are actively seeking
opportunities in Saudi Arabia. END COMMENT.

GHANA AS AN EXAMPLE OF RESPONSIVE GOVERNMENT


4. Among the speeches given by international celebrities,
may be noted those by Jerry Rawlings, Steve Forbes, and Al
Gore. Rawlings, former President of Ghana, spoke with a
verve that would have done credit to a television infomercial
huckster. To an appreciative audience, Rawlings explained
that the key to national stability and development were for a
government to be: transparent, responsive to popular
demands, empowering of people, and accountable. He offered
examples from his administration in Ghana as how to implement
these principles.

STEVE FORBES: FLAT-TAX PANACEA FOR ILLS OF DEVELOPING NATIONS


5. Publisher and some-time Presidential candidate Steve
Forbes strenuously advocated the flat-tax from his past
campaign platform as the road to prosperity for developing
nations. Some among the audience thought he may have
over-reached somewhat when he explicitly cited tax reform and
the flat tax as the solution to Sudan's economic woes.

GORE PROMOTES IT TO CONNECT DEVELOPING NATIONS TO GLOBAL
ECONOMY


6. Former Vice President Al Gore gave a vigorous and popular
talk about the role of information technology in integrating
Saudi Arabia into the global economy. Another portion of his
speech praised King Abdullah for his honesty and efforts to

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stem corruption, to the warm applause of the audience. In
other comments, he condemned Iran and recommended that Middle
Eastern nations also condemn the Islamic Republic.

PALESTINE, IRAQ AND VISAS


7. Following his prepared remarks, Gore was questioned about
the perceived "anti-Islamic, anti-Arab" tenor of U.S. policy
since 9/11. One questioner confronted Gore demanding "when
will the United States stop giving unconditional support to
Israel?" The former Vice President responded that the U.S.
is a strong friend and will not abandon Israel. He made no
specific comments about the policy of the current
administration, and expressed support for peace with security
for all parties. In reference to general U.S. policy toward
Arabs and Muslims, he said that personally he believed that
immigration and visa policy changes enacted after the
terrorist attacks were a serious mistake that exacerbated
U.S.-Islamic tensions. This comment was applauded by the
Saudi audience. In fact, few American or European speakers
were spared questions relating to Palestine, Iraq and visas.
When questioned about the Arab-Israeli Conflict, former
German Chancellor Schroeder replied that Arabs must recognize
the right of Israel to exist. The critical issue, in his
opinion, was how the parties can coexist. He stated that the
"road map" is the only viable route to peace at the moment
and that the U.S. was the key to influencing Israel and the
Arabs. He concluded by observing that the Arabs had a
critical role to play in solving regional problems and noted
that Russia had informed HAMAS that it must act responsibly
now that it had come to power.

ENVIRONMENTAL CONCERNS RECOGNIZED AT JEF


8. In a diversion from the purely economic, influential
young business leader Tarek Taher showed a well-produced and
heart-felt documentary on the environmental threats to the
Red Sea. This is an indication of the increasing awareness
in Saudi Arabia of the importance of the environment, and
especially the Red Sea, as both an economic and a cultural
asset.

WOMEN INCREASINGLY SEEN AT JEF


9. Women and women's issues were a benchmark for the JEF.
Although the Consulate had earlier been warned that the
Consul General would be "permitted" to sit in the men's
section when accompanying the Ambassador, other women were
advised to "respect local customs" and restrict themselves to
the women's section. However, over the course of the Forum,
Consulate staff observed a small, but continuous stream of
women attired in Western clothes moving in and out of the
men's section without hindrance. Additionally, rather then
being completely obscured, the first few rows of the women's
section, where the most important women were seated, was
clearly visible from a good portion of the male section.
Outside the meeting hall, the women's section of the lobby
was in plain view and readily accessible from the men's
section. The two lobbies were separated not by an opaque
wall but by a large scale model of the proposed King Abudllah
Economic City. This model was fronted by a wide passage and
both male and female viewers moved from one side of the lobby
to the other to examine the various portions of the model,
apparently oblivious to the fact that they had trespassed on
the forbidden domain of the opposite sex.


10. Throughout the forum, women speakers were seated on the
dais with men, without arousing any comment from the
audience. Speakers and moderators, both foreign and Saudi,
acknowledged the presence of the female audience and accepted
almost an equal number of questions from them. It must be
admitted, however, that some of the Saudi men addressed the
women with a tinge of condescension to their voices.
Although some critics complained that the women's comments
and questions reflected unseemly emotion (and by extension,
instability and unreliability),most of the women's questions
heard by Pol/Econ Chief were reasonable, practical queries.
The few times the questions betrayed emotion were occasions
such as the one where a frustrated woman heatedly asked how
can women get jobs if they can't work in the same building as
the men?

GLASS WALLS, BRICK CEILINGS AND THE MIXING OF THE SEXES

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11. A session late on the 3rd day dealt explicitly with the
issue of women's place in the modern world, titled "Glass
Walls, Brick Ceilings: Impediments to the Progress of Women
in the Workplace." Moderator Tim Marshall, Foreign Editor of
Sky News, UK, held an impromptu poll, asking the segregated
audience whether they approved of mixing of the sexes in the
workplace. He faulted the male audience for their reluctance
to take any stand on the issue, only a few registering
support and a single, "brave," to use Marshall's words, man
publicly exhibiting his disapproval. However Marshall
declared that the sequestered female audience voted
overwhelmingly to permit sexes to mix in workplaces.

SOME COMPLAIN THAT ARABIC IS NOT RESPECTED


12. In an issue that was to spill out of the JEF into the
press, Dr. Ghassan Al-Sulaiman, a former President of the
Jeddah Chamber of Commerce and Industry (JCCI),complained
that virtually all of the speakers spoke in English. He felt
that this degraded Arabic. In conferences held in France or
Germany, he insisted, the speeches would be in the local
language and translated into English and other languages.
Several in the audience endorsed his remarks, and the debate
was carried on for a few days in the Saudi press. A number
of correspondents supported the contention that Arabic should
be used exclusively, while opponents argued that facility in
English is an invaluable asset in international intercourse,
and as a practical matter, most of the speakers could speak
English, but very few spoke Arabic. Curiously, of the three
speeches Pol/Econ Chief attended that were given in Arabic,
two were given by women. Additionally, a greater proportion
of the questions emanating from the women's side of the hall
were in Arabic than from the men's. This could indicate that
the women attending had less facility in English, but one of
the women who gave a speech in Arabic on other occasions
demonstrated an excellent command of English. It is
conceivable that the women, in making inroads into the men's
world of business did not wish to arouse conservative critics
further by seeming to belittle their language, and strove to
demonstrate that they can be good, patriotic, Arabic-speaking
Saudis.
Gfoeller