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World Economic Forum on the Middle East

The Promise of a New Generation
Sharm El Sheikh, Egypt 20-22 May 2006

Read the Outcomes & Achievements

From the meeting:

 World Economic Forum on the Middle East outlines action agenda
 Queen Rania sees winds of change blowing in right direction
 Leave the business of business to business
 US and Middle East set reform, development agendas
 Getting to work in the Middle East
 Israel and Palestinians hold highest level talks in 11 months
 “Red carpet in, red tape out”: rebranding the Middle East
 Trading the way into the global economy
 World Economic Forum launches Egyptian Education Initiative
 Presentation of the Egyptian Social Entrepreneur of the Year Award
 Hosni Mubarak opens World Economic Forum on the Middle East
 World Economic Forum on the Middle East sets action priorities
 Oil Boom: sedative or stimulant for economic reform?
 Closing the Middle East gender gap


Monday 22 May

World Economic Forum on the Middle East outlines action agenda
Over 1,100 participants at the World Economic Forum on the Middle East have committed to increase the role of the private sector in driving the Arab world development agenda. The meeting’s Co-Chairs delivered a joint list of outcomes from the three-day conference which included restarting Israeli-Palestinian talks after 11 months and the launch of the Egyptian Education Initiative to benefit 820,000 children in 2,000 schools.


Other achievements of the meeting included:

Participants expanded a valuable network to foster communication and exchange among young people through the Forum’s Young Global Leaders community.

For the first time, the Women Leaders Programme brought together women ministers from across the region to construct a five-year action plan for public- and private-sector policies to address the region’s gender gap.

The Forum took initial steps to launching a private sector-funded branding campaign for the Middle East under the banner “Red Tape Out, Red Carpet In”.

The Forum recognized social entrepreneurs for their achievements in promoting sustainable business practices in Egypt.

Egypt’s National Competitiveness Council published its third report.

There was agreement to consider amendments to the open skies policy for Egypt.

Queen Rania sees winds of change blowing in right direction
Queen Rania of Jordan closed the World Economic Forum on the Middle East with a positive review of reform sweeping the Arab world. In a conversation with Professor Klaus Schwab, Founder and Executive Chairman of the Forum, the Queen said “when we look at reform in our part of the world, different countries are moving at different paces but there is reason to be optimistic.”

The Queen said she hoped that when the World Economic Forum on the Middle East convenes in Jordan next year, that greater regional stability would bring “a bit more clarity and visibility into the future.”

Touching on the theme of the meeting, “The Promise of a New Generation”, Queen Rania said that to realise such a promise, the Arab world needed to “implant the right values.” Principal among these she said was communication, both within and across borders.

To listen to the podcast in Arabic and English, and to watch the webcast,

Leave the business of business to business—
Middle Eastern business leaders have urged governments around the world not to intervene in free trade. “Governments should not meddle with these issues… if we believe in free markets, then they have to be free,” said Naguib Sawiris, Chairman and CEO of Orascom Telecom Holding. His comments followed several well-publicized cases including Dubai World; Mittal Steel and Enel’s failed bids for their foreign competitors.

Despite his decision to cede control of US ports acquired in a P&O takeover because it sparked a US political outcry, Dubai World Executive Chairman, Sultan Ahmed Bin Sulayem, remains upbeat. “America is an exception… it’s a misperception and a political battle that we got caught between and this won’t deter us. This doesn’t make it a no-investment area,” he told session participants.

Panellists said they as the business community would work closer with governments to fight negative perceptions of the Arab world following September 11 which might impact business activities.

Sunday 21 May

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US and Middle East set reform, development agendas—
“This is an era where ground is shifting in the Middle East,” stated Robert Zoellick, US Deputy Secretary of State, when asked to define US policy in the region. “We can help empower. We can help the process in terms of political engagement. But it has to come from the people themselves,” he said. Amre Moussa, Arab League Secretary-General, agreed that reform was necessary in the Arab world. But that change has to come from Arab societies on their own terms.

“Reform is one of the priorities of the Arab world,” Moussa said. “All countries and societies want to move ahead and have their own views of how to move ahead. Reform is an item for all of us to support but we have to be cautious because of the fragility of the security situation and uncertainty on the international scene.”

Referring to the situations in Iraq, Iran, Palestine and Darfur, Moussa said that “we have to get back to a situation of dialogue.”

Getting to work in the Middle East—
Generating new jobs for a rapidly growing labour force is an imperative for most Middle Eastern countries – even the relatively wealthy members of the Gulf Cooperation Council. Participants in a session on the topic discussed the additional challenge of creating jobs that would satisfy the career aspirations of their highly educated nationals. Traditionally, local college graduates have been absorbed into an oversized public sector. In an era of privatization and liberalization, however, this solution is no longer viable.

H.E. Sheikh Mohammed Bin Essa Al Khalifa, Chief Executive, Bahrain Economic Development Board, Bahrain, said his country’s objective was to create incentives for private employers to hire Bahraini nationals, without resorting to quotas or expensive government subsidies.

Labour market reform can help create the conditions for employment growth, but it won’t generate jobs themselves, noted Augusto Lopez-Claros, Chief Economist and Director, Global Competitiveness Network, World Economic Forum. For that, he said, the GCC countries need an “engine of job creation”. Increased trade – particularly increased intra-regional trade – could be that engine. “But this is an area where the Middle East, including the Gulf countries, are falling behind with respect to the rest of the world,” Lopez-Claros said.

Israel and Palestinians hold highest level talks in 11 months—
Israel and the Palestinians have held their highest-level meeting since June 2005 at the World Economic Forum on the Middle East. Both sides said the meeting between Tzipi Livni, Deputy Prime Minister and Minister of Foreign Affairs of Israel, and Mahmoud Abbas, President of the Palestinian Authority, was the first of more to come. Tzipi Livni also announced that Israel would release a part of the frozen tax revenue due to the Palestinians.

Abbas and Livni both called on the Hamas-led Palestinian government to recognize Israel’s right to exist, to renounce violence and to recognize international peace agreements of their predecessors as a crucial step towards continuing the peace process.

Saeb Erekat, Head of PLO Negotiations Affairs Department of the Palestinian Territories, urged the international community to help ease the crisis facing the Palestinians.

Meanwhile Munib Masri, Chairman, PADICO (Palestinian Territories), unveiled a new private sector initiative to push for a Palestinian government of national unity. “The private sector took its place to say we want to be part of this process and have a national unity government which could be the answer to the wishes of the Palestinians and Israelis,” he said.

“Red carpet in, red tape out”: rebranding the Middle East—
Business leaders discussed the roles of marketing and branding in the promotion of the Middle East as a destination for tourism and inward investment. During a WorkSpace session, participants considered how the image of the Middle East might be revolutionized and proposed a number of innovative campaign ideas during the process.

The main outcomes were:

Create a task force of stakeholders from the private sector to fund a marketing campaign for the Middle East. Appoint a campaign champion.

The private sector should ensure that sufficient money is made available to fund the campaign.

Bring Middle Eastern leaders together so that stakeholders can understand better what the region offers and represents.

Project Middle Eastern opinion leaders onto the international stage.

Proposals to progress a campaign entitled "Red Carpet In, Red Tape Out" greeted with enthusiasm by participants.

Webcasts I Session summary



Trading the way into the global economy—
Increasing trade ties at the multilateral, regional and bilateral level will enhance the Middle East’s participation in the global economy, agreed panellists in a session devoted to trade at the World Economic Forum on the Middle East.

Trade officials from Egypt, India and the US discussed the importance of trade in creating jobs, increasing competitiveness and driving development.

They stressed the need for not only free trade among nations, but also fair trade, that has benefits for both the developing and developed worlds.

Webcasts I Session summary



World Economic Forum launches Egyptian Education Initiative—
Egypt has adopted the Forum’s Education Initiative, which aims to improve schooling in the country through Information and Communication Technologies. Launched with the First Lady of Egypt, Suzanne Mubarak, and the Prime Minister of Egypt, Ahmed Mahmoud Nazif, the Egyptian Education Initiative (EEI) was announced at the World Economic Forum on the Middle East taking place in Sharm El Sheikh.

“Investing in our children’s education is investing in Egypt’s future”, said Yousry El Gamal, Minister of Education of Egypt.

The EEI will focus on four tracks: pre-university education, higher education, lifelong learning and e-learning industry development. The first phase of the EEI will impact 820,000 students in 2,000 schools, and over 300 colleges.

Egyptian Education Initiative I Press release

Presentation of the Egyptian Social Entrepreneur of the Year Award—
Egyptian Prime Minister Ahmed Mahmoud Nazif presents Laila Iskandar, head of Community & Institutional Development, with the Egyptian Social Entrepreneur of the Year Award.

Webcast I Press release

Saturday 20 May

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Hosni Mubarak opens World Economic Forum on the Middle East—
Egyptian President Hosni Mubarak has opened the World Economic Forum on the Middle East with a call to the international community to work together to resolve regional conflicts. “Peace and development are indivisible,” the President told more than 1,200 government, business and civil society leaders from 46 countries meeting in Sharm El Sheikh.

“The Middle East stands at a crossroads and it is up to us to make choices. Egypt’s choice is peace as it is the only path to development. We seek international partnership based on investment and not on aid and assistance. We are confident that building democratic societies is the only way to a better future that we seek,” he told participants.

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum said the meeting was “the most powerful demonstration of hope and will and determination to create the necessary conditions for economic, social and political development.”

Webcast I Session summary I Press release

World Economic Forum on the Middle East sets action priorities—
The Co-Chairs of the World Economic Forum on the Middle East have set five pillars for action to help prepare the way for a more prosperous future for the region. Over the course of the three-day meeting, participants will focus on democracy, peace and stability; youth and understanding; global integration; investing in the future; and the business agenda.

“Peace is the crucial component upon which all the pillars of this summit can be achieved,” said Shafik Gabr, head of Artoc Group for Investment & Development. The prosperity of future generations depends on stability in the region, he argued.

H.R.H. Princess Lolwah Al Faisal, Vice-Chair of the Board of Trustees and General Supervisor, Effat College, Saudi Arabia, described the next generation as a “population bulge” where 60 million people in region are under 25-years-old. “I see this youth bulge as an asset” in which the region needs to invest through education.

The private sector will lead the way in creating jobs for the region’s youth, said Nemir Kirdar, Founder, President and CEO, Investcorp. Mohamed Al Mady, Vice-Chairman and CEO, Saudi Basic Industries Corporation (SABIC), noted that investing in human resources through education, technology and creativity would give the young the tools needed to fill these jobs he said were crucial to economic development.

Webcast I Session summary

Oil Boom: sedative or stimulant for economic reform?—
The hike in oil prices has completely changed the economic climate that forms the background to reform in the Middle East. Top leaders in a World Economic Forum on the Middle East session were asked if governments were using the new budgetary resources to push forward reform or if the tough decisions were now on hold.

“Cautiously optimistic” is how Mustapha Nabli, Chief Economist and Director, Middle East and North Africa, of the World Bank reacted. “But the potential is still big for doing better.”

William Rhodes, Chairman, CEO and President, Citicorp Holdings and Citibank; and Co-Chair of the meeting, drew a distinction between the oil boom of the 1970s and the present one. Whereas much of the money left the region in the first boom, “I think a lot of this money will remain in the area now,” he told a packed session audience.

He continued that this was thanks to strengthened financial systems and large-scale privatization. Rhodes called on the private sector to “step up”, to “really get involved in working with government and international investors” to drive reform. Improved corporate governance, transparency and a proper regulatory framework in place, he argued, would only expand private sector participation in the economy which is crucial to job creation and development.

Session summary




Closing the Middle East gender gap
The gender gap in the Middle East is among the widest in the world, according to the World Economic Forum’s Gender Gap report. “Economies that do not empower, develop and capitalize upon one half of the brainpower and human resources available to them, run the risk of undermining their efficiency, innovation, productivity and future growth potential,” said Saadia Zahidi, head of the Forum’s Women Leaders Programme.

Participants in a session entitled “Equality before the law?” at the World Economic Forum on the Middle East agreed that regional governments must therefore make this issue a serious development priority. But to do this there must be a cohesive strategy for moving forward. Some of the recommendations put forward included:

For more information, please contact middleeast@weforum.org