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