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OO RUEHBC RUEHDH RUEHKUK RUEHROV
DE RUEHRH #0172/01 0401721
ZNR UUUUU ZZH
O 091721Z FEB 10
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2449
INFO RUEHEE/ARAB LEAGUE COLLECTIVE IMMEDIATE

UNCLAS SECTION 01 OF 04 RIYADH 000172 
 
CODEL 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OREP PREL PGOV PTER ECON SA
SUBJECT: SCENESETTER FOR CODEL LOWEY 
 
REF: STATE 10695 
 
INTRODUCTION 
------------ 
 
¶1. (SBU) Madam Chair, Mission Saudi Arabia enthusiastically 
welcomes the visit of CODEL Lowey to Riyadh and Jeddah.  By 
virtue of its energy resources, financial power, 
counterterrorism efforts, and leadership of the Muslim world, 
Saudi Arabia plays a critical role in almost every global and 
regional issue of importance to the United States.  You will 
arrive at about the same time as several other prominent 
official visitors, including Secretary Clinton, General 
Petraeus, Deputy Treasury Secretary Wolin, Under Secretary of 
State for Economic Affairs Hormats, Special Representative 
for Afghanistan and Pakistan Ambassador Holbrooke, and just 
before the visit of Energy Secretary Chu.  These visits 
highlight the many dimensions of our strategic partnership, 
as well as the importance both countries attach to deepening 
and broadening our engagement, badly strained in the 
aftermath of 9/11. 
 
A STRATEGIC PARTNERSHIP BASED ON SHARED 
INTERESTS BUT MARKED BY DIVERGING VALUES 
------------------------------------------ 
 
¶2.  (U) Counterterrorism cooperation following terrorist 
attacks in Riyadh in 2003 put damaged U.S.-Saudi relations on 
the path to recovery, and today Saudi Arabia is a key ally in 
the fight against violent extremism.  Our strategic 
partnership was also strengthened by shared objectives on 
global and regional issues, including global financial 
stability, stable energy markets, combating threats posed by 
terrorism and extremism, the urgent need for progress toward 
Middle East peace, containing Iran, and preventing the 
destabilization of Pakistan and Yemen.  Nevertheless, 
differences remain.  The United States has concerns about the 
status of women, lack of religious freedom, human rights 
restrictions, and limited political participation in Saudi 
Arabia, and our very different cultures and value systems 
ensure a degree of built-in tension, occasional 
misunderstanding, and hesitancy in the relationship. Your 
delegation's visit is especially important in this context, 
as it provides an opportunity to develop the dialogue between 
the U.S. Congressional leadership and key Saudi leaders 
needed to sustain mutually-beneficial bilateral cooperation. 
 
 
EDUCATION AND ECONOMIC OPPORTUNITY 
TO COMBAT VIOLENT EXTREMISM 
--------------------------- 
 
¶3.  (SBU) You have been well-briefed by our Washington 
colleagues on security and regional strategic issues, so this 
message will focus on a view of Saudi Arabia often overlooked 
by outside observers, but just as important to the bilateral 
relationship and to U.S. national security:  Saudi Arabia as 
a country in transition.  You arrive at a time when the 
Kingdom's leadership is confronting a number of difficult 
challenges: combating extremist ideology and providing for a 
rapidly expanding population (the annual growth rate is about 
2 percent).  Having faced down what amounted to an insurgency 
by Al-Qaida between 2003-2006, King Abdullah is attempting to 
eradicate the roots of extremist ideology through education 
and judicial reforms designed to weaken the power and 
influence of the most reactionary elements of Saudi Arabia's 
religious establishment, and by promoting economic 
diversification to create jobs for a Saudi youth bulge (over 
half the population is under 20) that is just now reaching 
maturity.  The King is keenly aware of the urgent need to 
make Saudi education more relevant to today's workplace and 
increase the role of women in the economy, both of which are 
controversial in this deeply conservative, inward-looking 
desert Kingdom.  Guided by a vision that is remarkably 
congruent with that outlined by President Obama in his Cairo 
speech to the Muslim world, King Abdullah has begun to 
implement an ambitious plan to transform Saudi Arabia's 
economy away from excessive reliance on hydrocarbons and 
towards a knowledge-based economy that can provide 
sustainable development for the long-term. 
 
¶4.  (SBU) Achieving these goals will require nothing short of 
a revolution in the education system and significant changes 
in most aspects of Saudi society.  Seen from the outside, the 
pace of reform seems glacial.  Yet for certain elements of 
Saudi society, the changes are coming too fast.  Whatever the 
pace, however, the reality is that serious reforms are 
irrevocably changing the face of the country.  Recently 
implemented measures include re-shuffling the Ministry of 
Education's leadership last February (bringing in the King's 
pro-reform son-in-law as the new minister); a top-to-bottom 
 
RIYADH 00000172  002 OF 004 
 
 
restructuring of the country's courts to introduce, among 
other things, review of judicial decisions and more 
professional training for Shari'a judges; the creation of a 
new investment promotion agency to overhaul the 
once-convoluted process of starting a business here; the 
creation of a regulatory body for capital markets; the 
construction of the King Abdullah University for Science and 
Technology (the country's  new flagship and 
controversially-coed institution for advanced scientific 
research); and a substantial budgetary investment in 
educating the workforce for future jobs. The Saudi government 
is also encouraging the development of non-hydrocarbon 
sectors in which the Kingdom has a comparative advantage, 
including mining, solar energy, and religious tourism. The 
Kingdom's 2010 budget reflects these priorities -- about 25 
percent is devoted to education alone -- and amounts to a 
significant economic stimulus package. 
 
INSTITUTIONAL AGENTS OF CHANGE 
------------------------------ 
 
¶5. (SBU) The King and his advisers are also keenly aware of 
the need to develop institutional capacity to implement and 
sustain comprehensive reform.  While Saudi institutions are 
generally weak, five in particular stand out as agents of 
change.  The largest -- Saudi Aramco -- is well known to 
outsiders as an icon of the Kingdom.  Four others, including 
a fledgling legislature, a center to promote dialogue, a 
flagship research university, and the Jeddah Chamber of 
Commerce and Industry, are steadily expanding their reach, 
influence, and ultimately, their capacity to ensure that the 
King's reforms will endure. There are other organizations 
leading change that are less prominent, but have easily as 
big an impact on specific spheres, such as Saudi Arabia,s 
Food and Drug Authority, which has worked with the U.S. FDA 
to set up a crackerjack e-government approach to registering 
and overseeing medicines.  Similarly, the King Abdulaziz City 
for Science and Technology (KACST) is a combination between a 
Ministry of Science and a Department of Energy lab, and is 
signing technology implementation agreements with companies 
like IBM to introduce technologies of the future, like 
nanotechnology solar cells and nanotechnology water 
desalination, on a commercial scale in the Kingdom. 
 
¶6.  (SBU) LEGISLATURE: Saudi Arabia's proto-parliament, the 
150-member Consultative Council (Majlis Al Shura) is an 
advisory rather than a representative body, but nevertheless 
plays a role in shaping both government policies and public 
perceptions.  The King appoints its members, most of whom are 
highly-educated technocrats expert in their fields rather 
than political leaders.  It can only propose legislation, 
which must then be approved by the Council of Ministers and 
the King.  However, its limited powers have increased 
incrementally since it was revived in 1992, and today its 
influence stems from its responsibility for the Kingdom's 
five-year development plans, from which the annual budgets 
are derived, its ability to summon government officials for 
questioning, and its role as a genuine policy debate forum. 
Its membership is drawn from and is roughly proportional to 
the populations of the Kingdom's thirteen provinces, and 
includes reformers and key religious scholars.  Acknowledging 
the need to expand women's formal participation in Saudi 
institutions, the King has also appointed twelve female 
"advisers" to the Council.  The Majlis is dominated by 
members who have studied in the United States, illustrating 
that influential Saudis still, more often than not, are 
likely to be U.S.-educated, speak American English, and while 
not always fully agreeing with USG policies, hold the U.S. in 
high regard. 
 
¶7.  (U) KING ABDALAZIZ CENTER FOR NATIONAL DIALOGUE (KACND): 
Established by then-Crown Prince Abdullah in 2003 to bridge 
the intense polarization of Saudi society, the KACND conducts 
training in schools, universities and community centers to 
teach citizens how to practice tolerance and respect for 
differences, and hosts an annual national conference intended 
to increase understanding on controversial social issues, and 
formulate recommendations for changes for the King's review. 
Topics have included national unity, moderation, women's 
rights and obligations, youth, cross-cultural understanding, 
education, employment, and healthcare.  Participants include 
representatives from various Muslim sects, university faculty 
and teachers, sociologists, economists, youth, businessmen 
and Islamic scholars and imams.  While the first national 
meeting had 30 participants, all of whom were men, the last 
conference included a thousand participants, half of whom 
were women. 
 
¶8. (SBU) KAUST, "THE HOUSE OF WISDOM":   The recently 
inaugurated $9-billion King Abdullah University for Science 
and Technology (KAUST) is the King's legacy project, and 
 
RIYADH 00000172  003 OF 004 
 
 
reflects his deeply-felt vision for the Kingdom's future.  He 
personally oversaw every step of its development, monitoring 
its construction through webcams from his various offices and 
residences. His inaugural remarks emphasized the importance 
of faith and tolerance in the pursuit of science and future 
development. The lavish ceremony was broadcast live to great 
acclaim, though the scenes of officially sanctioned 
mixed-gender festivities were apparently beyond the pale for 
conservatives for whom the notion that reform requires 
mixed-gender education is anathema. 
 
¶9. (SBU) A member of the country's highest clerical body -- 
the Council of Senior Scholars -- publicly expressed his 
opposition to gender mixing and was summarily dismissed. 
However, this swift action by the SAG did not settle the 
controversy, and heated debates continue, mostly over the 
internet.  While many Saudis support the King's efforts to 
promote education, most are uncomfortable with the idea of 
coed schools.  Even many of the Muslim students at KAUST have 
balked at coed activities, and sorting out the degree to 
which men and women mingle is among the new institution's 
growing pains.   (The student body consists of nearly 400 
graduate students, representing some 60 nationalities, 
including 33 Americans and over 50 Saudis.) The intensity and 
public nature of the debate are remarkable, and suggest a 
conservative backlash to the King's initiative.  While the 
King is likely to prevail -- this is not the first clash 
between the Saudi leadership and religious conservatives over 
educational issues -- the controversy illustrates some of the 
very real impediments to reform. 
 
¶10.  (SBU) JCCI: EXPANDING THE ROLE OF WOMEN: The Jeddah 
Chamber of Commerce and Industry (JCCI) is, in the Saudi 
context, a uniquely active organization on the front line of 
social change in Saudi Arabia, both in selecting its managing 
board through direct elections, and in the level of 
participation of women in the organization.  In recent years, 
women were both appointed and elected to the board, and 
following recent elections, a woman was elected as Deputy 
Chair of the Board for the first time, after a 
suspense-filled election that included U.S.-style 
campaigning.  In a country that limits the formation of civil 
society groups and public demonstrations, the JCCI provides a 
venue for debate and non-governmental activities, and often 
lobbies the government on policies.  The Khadija Bint 
Khowalid Center for Businesswomen within the JCCI has evolved 
from a training center to a lobbying unit that seeks to 
persuade the government to strike down barriers to women,s 
participation in the economy.   Within the JCCI, women and 
men are able to interact on a professional basis -- a 
phenomenon still uncommon in most of the Kingdom. 
 
U.S. PARTNERSHIPS TO 
SUPPORT GOVERNMENT REFORMS 
--------------------------- 
 
¶11. (SBU) Saudi officials have been candid in stressing the 
importance they place on strong ties with the United States 
to help them meet reform challenges, both through increased 
engagement at the government level, including educational 
exchanges, and more Foreign Direct Investment, particularly 
in energy, high tech, and manufacturing.  They hope to 
attract U.S. firms to invest in the Kingdom because our firms 
tend to invest for the long-term, bring the best technology, 
and commit to training local staff.  Saudi officials are also 
very keen to expand educational ties to the U.S. including 
expanding a scholarship program that has already sent 
thousands of Saudi students to U.S. colleges and 
universities, many in scientific and technical fields.  There 
are currently more than 22,000 Saudis studying at American 
universities.  The Embassy is working closely with a host of 
Saudi ministries to expand trade and investment ties, which 
will generate jobs for both Americans and Saudis.  We also 
have an active Science, Technology and Health partnership 
with Saudi Arabia.  Cooperation includes a Centers for 
Disease Control project to design and deploy an innovative 
new health information management system that allowed health 
officers to factor in street-level information on a real time 
basis to protect the health of this year,s Hajj pilgrims. 
This system will help control outbreaks of diseases like H1N1 
internationally.   The Mission has been able to use the 
Middle East Partnership Initiative to support some government 
reforms; for example, in 2008 the Embassy sponsored the 
first-time ever exchange of a group of Saudi judges from 
Riyadh.  Mission elements have also provided training to help 
the government in its implementation of a new law to combat 
trafficking in persons. 
 
HOW SAUDIS VIEW THE FUTURE 
-------------------------- 
 
 
RIYADH 00000172  004 OF 004 
 
 
¶12. (SBU)  Though many of the changes described above are for 
the better, observers often ask whether a reform program 
directed by an 86-year old monarch is sustainable.  The 
answer is debatable, but a recent survey of Saudis in three 
cities conducted by a U.S. pollster revealed that the 
majority believed that the country was moving in the right 
direction.  At the same time, they listed corruption, 
unemployment, inflation, and religious extremism among their 
chief worries, and about twenty percent expressed some 
support for Al-Qaida. While it is difficult to assess how 
much any such poll truly reflects public opinion, these views 
are echoed among Embassy contacts.  That Saudis would be 
willing to even consider answering questions posed by unknown 
pollsters is itself an illustration of how much the country 
has changed.  While only Saudis themselves can decide the 
pace and direction of the country's reform process, strong 
U.S.-Saudi partnerships across a range fields are likely to 
benefit both nations.  Embassy Riyadh looks forward to 
extensive discussions on this and other issues during your 
visit. 
SMITH