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PP RUEHDE
DE RUEHJI #0197/01 0670944
ZNR UUUUU ZZH
P 080944Z MAR 06
FM AMCONSUL JEDDAH
TO RUEHC/SECSTATE WASHDC PRIORITY 8882
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 1304
RUEHFR/AMEMBASSY PARIS PRIORITY 1376
RUEHRH/AMEMBASSY RIYADH PRIORITY 6238
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RHEHAAA/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 03 JEDDAH 000197 
 
SIPDIS 
 
SIPDIS 
 
RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARPI; 
PARIS FOR ZEYA; LONDON FOR TSOU 
 
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 
 
JEDDAH 00000197  002 OF 003 
 
 
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 
 
JEDDAH 00000197  003 OF 003 
 
 
 
¶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