JEDDAH ECONOMIC FORUM "POSTPONEMENT" -- RIVALRY

C O N F I D E N T I A L SECTION 01 OF 02 JEDDAH 000020

SIPDIS

RIYADH PLEASE PASS TO DHAHRAN, DEPARTMENT FOR NEA/ARP AND
NEA/IPA

E.O. 12958: DECL: 01/10/2014
TAGS: ECON KWBG PGOV SA SOCI
SUBJECT: JEDDAH ECONOMIC FORUM "POSTPONEMENT" -- RIVALRY
AND A JEDDAH INSTITUTION HEADING DOWNHILL

REF: JEDDAH 00013

Classified By: CG Martin R. Quinn for reasons 1.4 (b) and (d)


1. (C) Summary: On Friday, January 9, Saudi press carried
announcements of the Jeddah Economic Forum (JEF)'s
postponement for 3-4 months although contacts now indicate
that the event may not happen at all. Connection with Gaza
violence has been cited as a factor (although it may be only
a convenient excuse) while competition between rival Jeddah
organizations and possible official displeasure with last
year's JEF are likely the real reasons. Jeddah business
community contacts speculate that JEF may be on its last
legs, losing out in prominence to Riyadh's Global
Competitiveness Forum. End summary.


2. (U) KSA papers announced January 9 that the February 14-17
10th Jeddah Economic Forum (JEF) has been "postponed by three
to four months," according to Jeddah Chamber of Commerce and
Industry (JCCI) Secretary General Mustafa Sabri, "as we have
not received government permission." Sabri, in January 8
press conference, "denied that the postponement had anything
to do with the global financial crisis."

DELAY OF OFFICIAL PERMISSION


3. (U) Speaking on condition of anonymity, another JCCI
member was cited as stating that aside from the delay in
getting the official permission, two other factors were
responsible for the postponement:

--(1) the impact of the global financial crisis on some for
the event sponsors and co-sponsors as well as exhibitors;

--(2) hesitation on the part of speakers and participants to
travel within the region due to the ongoing Israeli war in
Gaza.


4. (U) Yet another businessman, quoted in the press, said the
JEF's original scheduling came too close to the Global
Competitiveness Forum (Riyadh, January 25-27) and indicated
that they needed to be staggered "and so the JEF has to be
postponed."


5. (C) Sami Behrawi, chairman of JEF, told post that he
cannot now say whether the JEF is definitely off or merely
postponed. In a vote by the Jeddah Marketing Board (JMB)
last week the majority favored postponing the JEF. Behrawi
commented that approvals used to come automatically, but this
year the procedure was changed to require government approval
before guests were even approached. Last year there had been
some official displeasure with the Forum. Businessman Amr
Khashoggi concurred, suggesting that the delay in approval
means that the government doesn't want the Forum to happen.

"BROTHEL" ATMOSPHERE AND MIXING OF GENDERS AT THE JEF


6. (C) January 11 Al Madina Arabic daily quoted a SAG
licensing official warning that if JEF organizers failed to
take into account "instructions of concerned authorities,"
the Forum would be closed down. This veiled threat alludes
to past complaints from religious conservatives that the 2008
JEF allowed opportunities not only for women to attend (many
did, sitting in a separate section) but for men and women to
"mix indecently, laugh and flirt in public," creating a
"brothel" atmosphere. When some women went for coffee in the
lobby reception area between sessions of the 2008 Forum, a
number of men disapproved of their "mingling." At the time
JCCI Chairman Saleh Al Turki was criticized for allowing such
"prostitution" and "moral corruption" to occur on the holy
soil of Saudi Arabia.


7. (C) Behrawi said he did not think the global financial
crisis was a factor in the decision since already SR 20
million ($5.3 million) had been collected from sponsors.
Asked whether the money would be returned to sponsors or
donated to the Palestinians in Gaza, Behrawi said there would
have to be another vote on that question depending on whether
the JEF is ultimately postponed or cancelled altogether.
With regard to money for the Gazans, January 10 papers
announced that the JCCI has donated SR 2 million ($533K) and
the JCCI Chairman Saleh Al Turki has donated SR 1 million
($267K) from his own pocket.

TENSION BETWEEN JEDDAH CHAMBER AND MARKETING BOARD


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8. (C) The vice president of the PR agency for JEF, Sara Al
Ayed, said she was not surprised at the cancellation since
the JCCI and JMB have been feuding among themselves and that
serious organizational steps simply were not taken. She
volunteered that the Global Competitiveness Forum in Riyadh
had become the new economic highlightin the Kingdom and that
JEF was "dying if not aleady dead." According to another
source the peronal tension between Salh Al Turki (JCCI) and
Sai Behrawi (JMB) has become palpable, creating grea
awkwardness when both are present in the same rom.


9. (C) A resident Amcit ecoomist, not privy to these
rivalries, favors the view that the Saudi Arabian Government
is simply not ready for the JEF to happen early in the year
and, with its large cash surplus, the SAG prefers not to be
boxed into a corner with foreign entreaties for financial
assistance before it determines where exactly the global
economy is headed.

JEF ON THE DOWNSLIDE?


10. (C) Comment: It is increasingly doubtful that the Jeddah
Economic Forum will happen this year while the link with Gaza
violence looks more like a convenient excuse. The JEF hit
its peak in 2004, nearly five years ago, when Amr Dabbagh --
now Saudi Arabian General Investment Authority (SAGIA) head
-- was the JEF chairman. Since then, JEF has had three
chairmen and is perceived to be going downhill as a result of
organizational squabbling. Under Dabbagh's leadership
Riyadh's Global Competitiveness Forum is moving to the
forefront. As current JEF chairman Behrawi remarked
bitterly, "Amr Dabbagh never has to apply for permits; he can
invite whomever he likes without checking with anyone." End
comment.
QUINN