Hundreds of business leaders and scholars attend Jeddah economic forum

Hundreds of business leaders, academicians and political figures from all over the world attended the Jeddah Economic Forum in January to discuss the outlook for the world’s current economic order and the impact technology-based globalization will have on the Kingdom and the Middle Eastern markets, as well as the world. 

Organized by the Jeddah Marketing Board, an affiliate of the Saudi Arabian Chambers of Commerce and Industry, and the Sloan School of Management of the Massachusetts Institute of Technology (MIT), the forum was inaugurated by Makkah Province Governor Prince Abdulmajeed bin Abdulaziz. “We are privileged that our country is in the heart of the Muslim world and because of that we have a remarkable global position. Islam is the religion of progress and development as well as of love and coexistence bringing all nations together,” and creating a climate conducive to commerce, he said.

“Wealth Creation in a Knowledge-Based Economy” was the theme of this year’s forum, which focused on the technological challenges facing companies in today’s markets and how information management is essential for achieving and maintaining competitiveness. Participants attended three days of seminars and discussion groups on a wide range of topics, from the impact of information technology on commerce to ways emerging economies, such as that of Saudi Arabia, can become competitive on the global scene.

The prestigious event was attended by a large number of national and international businessmen and financial experts as well as political figures such as former U.S. President Bill Clinton, former German Chancellor Dr. Helmut Kohl and former French President Valéry Giscard D’Estaing, as well as Bahrain’s Crown Prince Shaikh Salman bin Hamad Al-Khalifah.  

Governor of the Saudi Arabian Investment Authority (SAGIA) Prince Abdullah bin Faisal bin Turki said the establishment of SAGIA represents a major step in the continued development of the Saudi Arabian economy. He noted that SAGIA has taken the lead in attracting investment by creating an efficient mechanism and a positive environment to attract greater domestic and foreign investment. 

“Our [past] achievements are tremendous but they are not enough in the context of the fast changing world,” he said. “Our successes of the past will be a good base for the future. We have good infrastructure, fairly good cash flow and liquidity - the factors for attracting international investors. We have great potential and there is every reason to be optimistic. In fact, in the next few months lots of new things will be happening and several ministries are working on them.” 

He added that the technological breakthroughs that the Kingdom had witnessed in recent years were unprecedented. These advances in technology would inevitably change the way the economy is managed. “To some, this change could be viewed as an opportunity. We in the Kingdom should look to these knowledge industries as opportunities to diversify our economies and complement the other economic sectors that we have developed in recent decades.” 

On the educational front, the SAGIA governor said the project launched by Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz, which aims at introducing computers for every student in Saudi schools, emphasizes the importance the Saudi government is placing in technology education, and will have far-reaching consequences in preparing young Saudis to help implement broad-based economic development in the future. 

“Establishing a knowledge-based economy requires a substantial investment in capital when the competition for capital is becoming fierce,” he said. “There are many new emerging economies that are competing for this capital. However, the ones that succeed are the developing countries that maintain policies which are attractive to investors. The Kingdom in this respect has revised its commercial and foreign investment laws. The WTO also has helped crystallize thinking on such issues.” 

Minister of Commerce Osama Faqih attested to the strength of the Saudi economy in conformity with global economic changes, pointing out that the Kingdom has concentrated in recent years on non-petroleum products with the goal of diversifying and increasing the national income. Accordingly, he said, a number of economic reforms have been introduced, such as establishing the Higher Economic Council, privatizing a number of sectors, encouraging foreign investment, cutting taxes on goods and products and unifying customs regulations with member states of the Gulf Cooperation Council (GCC). 

Lester C. Thurow, professor of management and economics at MIT and former dean of MIT’s Sloan School of Management, introduced the theme of the forum and delivered a lecture on “The third industrial revolution.” He said the world was in the process of creating a new global economy, one based “not the Internet or information technology, which is revolutionary, but things like robotics, biotechnology and the human gene that will revolutionize the complexion of the world.” 

Comparing the Third World with the West, he said: “If the Third World doesn’t keep pace with new technology, I’m afraid, it will lag far behind.” While China has remained in the forefront, for instance, by manufacturing components and supplying to advanced countries, Africa has failed to keep pace with new developments and adopt new technologies. That was why it still lagged far behind. 

John E. Pepper, chairman of the Procter & Gamble Company, which produces consumer goods at factories in the Kingdom, said the outlook for economic growth in Saudi Arabia is positive, not only because of new investment laws, but also due to the priority being placed on education. “We strongly support the emphasis being brought to economic diversification,” he said.   

President Clinton addresses Jeddah economic forum 

Addressing the Jeddah Economic Forum in January, former U.S. President Bill Clinton spoke of reaching common understanding in order to solve differences among countries and peoples through commerce and economy. He emphasized the importance of Saudi-U.S. relations, which he said have been beneficial to both countries in the past and will continue to be in the future, and praised the Kingdom’s role in improving economic relations in the region. 

Reviewing his administration’s efforts to achieve peace between the Palestinians and the Israelis, emanating from his recognition that one day, a just and comprehensive peace will be achieved between the two parties, he called on both sides to step back from the brink and work together for peace. 

Delivering the keynote address on the second day of the forum, President Clinton predicted that there would be a Palestinian state in Gaza and the West Bank. He emphasized that both Palestinians and Israelis had to compromise. “Compromise is essential; it’s honorable and not shameful,” he added, calling on both sides to end the violence. 

Despite the violence, he was convinced that terrorism would not prevail. President Clinton said he was encouraged by people in the region speaking out against terrorism. “The U.S. administration,” he added, should “do a better job and listen to Muslims...who thought that before September 11 the U.S. was insensitive to their needs, hostile to their values, beliefs and economic interests.” He concluded by emphasizing the importance of Saudi-U.S. relations, which he said have been beneficial to both countries in the past and will continue to be in the future. 

President Clinton later met with the Custodian of the Two Holy Mosques King Fahd bin Abdulaziz and Deputy Prime Minister and Commander of the National Guard Crown Prince Abdullah bin Abdulaziz. He also visited Al-Aziziyah Farm near Riyadh to attend an exhibition of traditional arts and crafts.