NINTH ANNUAL JEDDAH ECONOMIC FORUM: NO DE-PEG,

C O N F I D E N T I A L JEDDAH 000127

SIPDIS

SIPDIS

RIYADH PLEASE PASS TO DHAHRAN, DEPT PLEASE PASS TO NEA/ARP
FOR RJACHIM/SRAMESH

E.O. 12958: DECL: 03/10/2018
TAGS: ECON EFIN EIND ELAB PHUM SCUL SOCI SA
SUBJECT: NINTH ANNUAL JEDDAH ECONOMIC FORUM: NO DE-PEG,
PROGRESS FOR WOMEN WILL BE GRADUAL

REF: A. 06 JEDDAH 00118

B. 06 JEDDAH 00197

Classified By: Tatiana C. Gfoeller for Reasons 1.4(b) and (d).


1. (U) SUMMARY: The ninth annual Jeddah Economic Forum (JEF)
drew 2,500 attendees for a Feb 24-26 series of panels and
speeches concerning the future of the Saudi economy. Guided
by the theme of "Value Creation through Alliances and
Partnerships," this year's topics focused on economic
diversification. Saudi Arabian Monetary Agency (SAMA)
vice-governor Dr. Muhammed Al-Jasser ruled out de-pegging the
riyal from the U.S. dollar. Labor Minister Ghazi Al-Gosaibi
defended Saudization and advocated a gradual increase in the
role of women in the workforce. END SUMMARY.


2. (U) Prominent speakers included former Chairman of the
U.S. Federal Reserve Alan Greenspan, Virgin Group founder
Richard Branson, Nobel Prize winner and microcredit pioneer
Muhammad Yunus, Palestinian Prime Minister Salam Fayyad,
Mecca Governor Prince Khaled Al-Faisal, and Bosnian President
Haris Silajdzic. Sami Bahrawi, Board Member of the Jeddah
Chamber of Commerce and Industry, continued his role as
Chairman of JEF.

No De-pegging of the Riyal
--------------


3. (U) Following a session in which Mr. Greenspan said that
floating a currency generally softens inflation pressure, Dr.
Al-Jasser ruled out de-pegging the riyal from the U.S.
dollar, saying that it would not help curb inflation as the
Saudi economy is so heavily reliant on oil exports. He also
pointed out that although Kuwait has de-pegge from the U.S.
dollar, inflation continues.

Sadization, Women in the Workforce
--------------


4. (C) Labor Minister GhaziAl-Gosaibi defended the
Saudization policy enfored by his ministry, asserting that
businesses an the media unfairly portray Saud youth as
lazy. He said that Saudi primary and secondary schools need
to improve the teaching of English and technical skills in
order to better prepare students for a globalized job market.
He directed light-hearted criticism towards the Ministry of
Education which was well-received by the audience and echoed
by some during the concluding Q&A period. (COMMENT: During a
conversation after this session, several businessmen told
Econoff that they considered the Ministry of Education to be
a conservative bastion obstructing economic development.
They were less critical of the Ministry of Labor, but even as
Saudis they were conflicted about quotas, referring to them
as the "Saudization tax." END COMMENT.) On the topic of
women in the workforce, Al-Gosaibi promised more
opportunities but said that changes would be gradual and
should occur within the system.

Familiar Controversies
--------------


5. (U) The conference's planners attempted to compromise
between traditional segregation of the sexes and full
integration. Roughly a third of the hall's seating was
reserved for women, with a partition that hid them from the
rest of the audience but allowed them to see the stage.
Although out of sight, they were vocal in their applause
throughout the conference, particularly when speakers
addressed the issue of women in the workforce.


6. (U) A few women, primarily Westerners and non-Saudi Arabs,
ventured to sit in the main section. (NOTE: As in the past,
the U.S. Consul General, a woman, was seated in the front row
of the men's section. END NOTE.) Among the conference's
speakers, only a handful were women, and even fewer than in
previous years (Reftel A). In the exhibition area and in the
dining hall, men and women mixed freely, with many of the
women unveiled. Although this drew no obvious objection from
among the attendees, Saudi Grand Mufti Sheikh Abdulaziz
Al-Sheikh (not in attendence) later issued a statement
condemning the intermingling of the sexes at the conference
and the presence of unveiled women. Some conservative
internet discussion sites have featured comments of agreement.


7. (U) Audience comments to speakers frequently included
criticism of the decision to hold the conference in English
rather than Arabic, a continuing controversy in recent years
(Reftel B). Chairman Bahrawi defended the use of English on
the basis of the conference's focus on global integration,

and also said it was in keeping with the Arab tradition of
hospitality. Several attendees told Econoff they were happy
to have so many international visitors but that the economic
modernization of the Arab world should not have to mean the
abandonment of its language or culture.
TONEY