world economic forum on the middle east 2006

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World Economic Forum onthe Middle East

The Promise of a New Generation

Sharm El Sheikh, 20-22 May 2006

The views expressed in this publication do notnecessarily reflect those of the World EconomicForum.

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REF: 200606

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Other specific information on the World Economic Forum on the Middle East, Sharm ElSheikh, 20-22 May 2006, can be found at the following links:

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http://www.weforum.org/middleeastprivate (participants/private site)

Preface 3

Summary – The Promise of a New Generation 4

The Middle East Business Agenda 7

Investing for the Future 10

Global Integration 12

Youth and Understanding 15

Democracy, Peace and Security 18

Summit Outcomes 20

Acknowledgements 22

1

Contents

World Economic Forum on the Middle East

3

Preface


The World Economic Forum on the Middle East 2006 set out to highlight the “Promise of a NewGeneration” against a background of profound challenges. Over 1,100 participants considered multipleissues, including the conflict in Iraq, the unresolved Israeli-Palestinian problem, heightened tensions overIran’s nuclear programme, the impact of higher oil revenues, insufficient investment in essentialinfrastructure, slumping securities markets and, most important of all, an uncertain future for the region’syouth.

The Summit was marked by a new optimism, with more open dialogue than ever before and a genuinecommitment to increasing the role of the private sector. Participants focused on issues that the businessworld can credibly address. Moreover, the Summit generated real achievements on the steps needed tounderpin economic success and invest for the future, and outlined a host of commitments for the future.

The encompassing theme placed the challenges and opportunities of an increasingly youthful Middle East atthe heart of the agenda for the first time. Every aspect of policy-making in the region, from job creation topeace and security affects young people. Strengthened partnerships between government and the privatesector are essential. The Forum introduced students to young regional politicians to discuss the issues thatmattered most to them. The Forum also launched the Egypt Education Initiative to benefit over 800,000children. In addition, participants brought women’s issues to the fore through the Forum’s Women LeadersProgramme by promoting a five-year action plan to implement private- and public- sector policiesaddressing the most pressing challenges women face.

Participants concluded that the private sector has a key responsibility, not just for creating jobs for thoseentering the workforce, but also for ensuring that the workforce is productive, healthy and fairly treatedregardless of the political climate. Governments can facilitate the work of the private sector by taking a long-term view on the investment of the current oil windfall and by allowing businesses more freedom to operateresponsibly within global parameters. Indeed, participants took steps towards launching a private sector-funded branding campaign for the Middle East and agreed to consider amendments to the Egyptian OpenSkies policy.

As the largest companies expand beyond the Middle East, many countries in the region are seeking todeepen their economic and political engagement with the rest of the world. The global integration of theregion, through trade, investment and political relations, formed an additional sub-theme in the programme.Leaders from business and government discussed the steps required to move away from relations basedprimarily on oil and security issues towards a more positive and multifaceted global role.

Global integration and harmony must take place on a cultural, as well as economic and political, level.Enhancing common understanding between faiths and peoples is key to future peace and stability. Conflictand insecurity in the Middle East continue to pose serious threats to the welfare of the region’s people, withmajor global implications. A final series of sessions sought agreement on the essential next steps tostrengthen dialogue and underpin long-term security in order to create an environment in which the nextgeneration can flourish and prosper.

Regional governments, business and civil society leaders, and especially youth, have taken bold initiatives totransform the region. The Forum is committed to facilitating these initiatives and actions over the comingyears to uphold the promise of the new generation.

Sherif El DiwanyDirector, Middle East and North Africa

The tight security in Sharm El Sheikh starkly remindedparticipants at the World Economic Forum on theMiddle East of the most difficult challenges facing theregion: the quest for peace and stability, particularly inIraq and between the Israelis and Palestinians. Whilethe focus was on the “Promise of a New Generation”and how to create the 80 million jobs needed over thenext 20 years to stem resentment among youth, therewas no denying other significant problems, includingtensions over Iran’s nuclear programme, wideningincome gaps resulting from sharply higher oil revenues,anger among the middle class following stock marketslumps and the lack of infrastructure.

Discussions were candid, and intense debate frequent,as participants deliberated on five sub-themes:Democracy, Peace and Security, the Business Agenda,Global Integration, Investing for the Future and Youthand Understanding. A highlight of the event was, ofcourse, the meeting of Israel’s Foreign Minister TzipiLivni and Palestinian Authority President MahmoudAbbas – the highest-level Israeli-Palestinian encounterin almost a year.

The Forum launched a number of projects during themeeting, including the Egypt Education Initiative, aprogramme to develop an action plan to address thegender gap, and a private sector-funded brandingcampaign to counter inaccurate perceptions of theregion. Four major messages emerged. First,businesses must take the lead in Middle East renewal.Next, the region cannot be competitive without equalopportunities for men and women. In addition,democracy, peace and stability cannot be achievedovernight, but hope for attainment rests with theregion’s youth, whose future and security must be ofparamount concern. Finally, dialogue must bereinforced to lead to more successful cooperativeaction.

Democracy, Peace and Security

The deteriorating situation in Iraq, the continuingconflict between the Israelis and Palestinians(particularly with the election of a Hamas-ledPalestinian government) and the rising tensions overIran’s nuclear programme confirm that democracy,peace and security remain elusive.

• While democracy, peace and stability cannot beachieved instantly, dialogue among relevant partiesmust be stepped up.

• Arab countries must manage reform andliberalization while carefully maintaining stability,security and fairness.

• Businesses, politicians and members of civil societyshould deepen communication and cooperation.

• Gender equality and youth security are key goalsthat will enhance the prospects for democracy,peace and stability in the region.

4

Summary – The Promise of a New Generation


“It is our conviction thateducation is a fundamentalhuman right and isinstrumental in fightingpoverty, eliminating genderinequality, as well asintroducing democracy.Education is also the besttool to fight ignorance,dispel hatred and faceterrorism. It has become acornerstone for driving theeconomy forward.”

Ahmed Mahmoud NazifPrime Minister of Egypt

“There must be a strongerdialogue between politicsand business to move thepeace process forward.”

Shafik GabrChairman and ManagingDirector, Artoc Group forInvestment and Development,Egypt, and Chairman of the ArabBusiness Council

“Reform is one of the priorities of the Arab world. Allcountries and societies want to move ahead and havetheir own views on how to move ahead. Reform is anitem for all of us to support but we have to be cautiousbecause of the fragility of the security situation anduncertainty on the international scene.”

Amre MoussaSecretary-General, League of Arab States, Cairo

“This is an era where ground is shifting in the MiddleEast…and it is combined with changing forces ofglobalization. We can help empower. We can help theprocess in terms of political engagement. But it has tocome from the people themselves.”

Robert B. ZoellickUS Deputy Secretary of State

The Business Agenda

Countries in the region must confront obstacles toeconomic growth such as bureaucracy, inadequateinfrastructure and limited technological skills.

• Tenacious reformers are rewarded with highergrowth and more investment.

• The region’s labour markets need to be open andflexible.

• To attract more foreign direct investment,countries should focus on bolstering legalframeworks and cutting red tape to enhanceefficiency and productivity.

• Economic diversification, increased investment ininformation and communications technology andthe broadening of the energy sector will boostthe region’s competitiveness.

• Young people represent the Middle East’s mostvaluable asset.

Global Integration

Global integration will bring both advantages anddisadvantages to the Middle East.

• Impediments to the Middle East’s integration withthe global economy include the negativeperceptions of the risks investors face, the poorimage outsiders have of the region and the lackof the systems and infrastructure needed to be aglobal player.

• While political and security risks are significant,they should not hide the fact that the Middle Eastcompares unfavourably to other competingregions.

• The private sector should spearhead efforts tocounter inaccurate perceptions of the MiddleEast, remedy its competitiveness shortcomingsand convince people of the benefits ofglobalization.

5World Economic Forum on the Middle East

“We have to instil values such as tolerance and respect forhuman rights to make the process [of reform] sustainable,successful and genuine.”

H.M. Queen Rania of the Hashemite Kingdom of JordanMember of the Foundation Board of the World Economic Forum

“We have to dig deeperthrough technology andinnovation. We must bringour people to the standardof global players to competeinternationally with the bestof nations”.

Mohammed H. AlmadyVice-Chairman and ChiefExecutive Officer, Saudi BasicIndustries Corporation (SABIC),Saudi Arabia

“We need to see moreprivatization. If you openyour markets and giveopportunities to both menand women, this region willdo fantastically well.”

Stelios Haji-IoannouChairman, easyGroup, UnitedKingdom

“The forces of globalizationcreate tension just as theycreate opportunities. Thesetensions must bemanaged.”

Nemir A. KirdarFounder, President and ChiefExecutive Officer, Investcorp

Investing for the Future

Thanks to revenues from high energy prices, manyMiddle East countries have an unprecedentedopportunity to push forward reforms, while cushioningthe pain that comes with them.

• The oil price windfall could support significantrestructuring of the region’s economies and mitigatethe negative effects of reform.

• The region must turn its high liquidity into tangibleresults, channelling funds to projects that promotegrowth with social equity.

• Capital markets must be developed that allow easieraccess to capital, create more attractive investmentoptions and promote higher standards oftransparency and governance.

• While the government’s role is to provide afavourable investment climate, the private sectorshould lead the way to reform through corporatesocial responsibility, sustainable practices and socialentrepreneurship.

Youth and Understanding

The promise of a new generation is that they will breakthe cycle of conflict that has bedevilled the Middle Eastfor decades.

• Education is a key driver of growth. Programmesmust be devised to promote entrepreneurship andinnovation.

• Reforming education, particularly curricula, will instilgood values in young people and encourage them tobe tolerant and make peace.

• Youth should be encouraged to be civic minded.Government efforts to stifle the use of newtechnology and communications as a tool of politicalactivism are likely to prove costly and ineffective. Thebest approach is to let ideas flow.


“We must grow the role ofthe private sector. It isimportant that the privatesector not only speak outbut it should also dosomething.”

William R. RhodesChairman, Chief ExecutiveOfficer and President, CiticorpHoldings and Citibank, USA; Co-Chair, World Economic Forumon the Middle East

“We need a dialogue tolisten to the needs of theyoung so we can turn the'youth bulge' into assets wecan be proud of.”

Princess Lolwah Al FaisalVice-Chair of the Board ofTrustees and General Supervisor,Effat College, Saudi Arabia

“We must have not only a formula to provide socialservices, but also a strong, competitive business model tosurvive. A social entrepreneur must integrate socialobjectives into the core business, bringing in all playersin the value chain to create benefits for the environmentand communities.”

Helmy AbouleishVice-Chairman and Managing Director, Sekem Group, Egypt

“How wonderful, how normal and how sacred it is whenwe sit together as brothers.”

Rabbi Awraham S. SoetendorpJewish Institute for Human Values, Netherlands

“Religion is crucial for the peace of the world; it caneither consolidate it or harm and destroy it.”

Lord Carey of CliftonFormer Archbishop of Canterbury, United Kingdom; Member of the

Foundation Board of the World Economic Forum


The world’s greatest economies are led by businesses.Although the Middle East and North Africa (MENA)countries face enormous obstacles to self-sustaininggrowth, businesses can play a greater role inpromoting reform and global competitiveness. Theeconomic reform movement is still in its infancy, andentrepreneurship and investment are all too oftenstrangled by bureaucracy, inadequate infrastructuresand limited technological skills. However, the seeds ofchange — and hope — are being planted. Countriesthat have embraced reform have been rewarded withaccelerated economic growth. A more pragmaticattitude on the part of government and private sectorleaders has reduced conflict and encouragedcooperation. This year’s World Economic Forum on theMiddle East explored both the positive and negativeaspects of the region’s business climate anddeveloped realistic proposals for its improvement.

Seen from one perspective, the region seems deeplydysfunctional, torn by war and terrorism, badly laggingon many key social and economic indicators anddependent on a handful of resources — especially oil.

From another point of view, however, the MENAcountries look like the classic investment bargain — fullof under-utilized assets and unrecognized value. Asgovernments embrace market reform and developtheir human resources, businesses and investors whomove early could reap outsized returns. In otherwords, a turnaround story may be in the offing.

Which view is correct? For many of the participants atthe Summit, the question has already been answered.Where some see only risk, they see opportunity. Whereothers see unemployment and despair, they see a newgeneration of workers and consumers, who only needthe tools to create wealth and improve their lives.

“The region’s greatest asset is its young men andwomen,” said Christiaan J. Poortman, Vice-President,Middle East and North Africa Region, World Bank,Washington DC.Realizing this promise, however, will take sweepingchanges — political, social, economic, cultural andpsychological. Participants at the Summit focused onidentifying the processes to effect such change.Among the topics addressed were:

• Labour market reform: Participants agreed that byreducing artificial job creation barriers and movingskilled workers from the public to the private sector,the region can unlock the creative energies of itspeople while discouraging the growth of apermanent underclass of low-wage foreign workersin the more affluent countries of the Persian Gulf.“What the private sector needs are free, flexible andfair labour markets,” said H.E. Sheikh MohammedBin Essa Al Khalifa, Chief Executive, BahrainEconomic Development Board, Bahrain.

The Middle East Business Agenda


• Economic diversification: Despite the region’swell-publicized security problems, travel andtourism hold great promise for future growth assome countries, such as Dubai, are alreadyproving. However, governments need to clearaway numerous obstacles, such as controls onproperty ownership, restricted national airlinemarkets and burdensome visa requirements (seeBox 1).

• Information and CommunicationsTechnology: As of 2004, only 41 out of every1,000 inhabitants of the MENA region wereInternet users (see Figure 1). But that picture ischanging, as telecom providers restructure orprivatize and entrepreneurial activity accelerates.However, they require compelling content to builda consumer base for broadband and otherservices. “Does the Internet today provide[Egyptian families] with the right content thatserves their needs in the local language? Theanswer is probably no,” said Tarek Kamel,Minister of Communications and InformationTechnology of Egypt. Developing such content,he added, is a task for the whole society, whichis why Egypt is encouraging the convergence ofits entertainment and Internet industries andpromoting the development of computer clubsand other grassroots ICT organizations.

Egypt is a case study in Middle Eastern tourism. Rich inculture, tradition and history, tourism is growing faster thanthe world average but overall receipts are slightly declining.This is due mainly to Egypt’s under-developed transportnetworks, reliance on a few European markets and a lackof tourism promotion spending compared to other resortdestinations.

Since these issues are pervasive in the Middle East,business leaders discussed the roles of marketing andbranding in promoting the region as a destination fortourism and inward investment. During a WorkSpacesession, participants considered how the image of theMiddle East might be revolutionized and proposed anumber of innovative campaign ideas during the process.

Participants made a commitment to create a task force ofstakeholders from the private sector to fund a marketingcampaign for the Middle Eastunder the banner “Red CarpetIn, Red Tape Out”. Furthermore,there were private sectorcommitments to ensure thatsufficient money is available tofund the campaign. To underpinthe effort, participants suggested bringing Middle Easternleaders together to help stakeholders better understandwhat the region offers and represents and project MiddleEastern opinion leaders onto the international stage.

Box 1: Red Carpet In, Red Tape Out: Rebranding the Middle East

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Tourism Authorities Annual Promotional Budgets(US$ Million)

Spend per Acquired Tourist (In US$)

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Internet Usersin the Middle East and North Africa (per 1,000 people)

Only 41 of every 1000 people in the Middle East and North Africawere Internet users in 2004

Figure 1: Regional Internet Use


• Energy: With oil prices hovering close to US$ 70per barrel, the energy sector would seem to be theleast of the region’s worries. However, most oil-producing countries have not yet stimulated thedevelopment of related industries — such asexploration, oil field support and professionalservices — that can boost investment andemployment. “This is one of the most importantunfulfilled economic potentials in the whole region,”said Vahan Zanoyan, President and Chief ExecutiveOfficer, The Petroleum Finance Company,Switzerland.

• The Role of women: The MENA countries cannever hope to escape the trap of poverty andtechnological backwardness if over half thepopulation is excluded from meaningful economicactivity. Participants debated how to reconcile theneed to empower women with the region’s prevailinglegal and cultural norms (see Box 2).

The economic picture presented at this year’s Summitwas far from rosy — both in terms of current businessconditions and future growth prospects — althoughthere is no cause for despair. The Summit revealedboth sides of the picture — the dark as well as thelight. In the end, it will be up to the region’s policy-makers, business magnates and people to decidewhich one will prevail.

H.E. Sheikh Mohammed BinEssa Al KhalifaChief Executive, BahrainEconomic Development Board,Bahrain

“Companies don’t yet knowwhat is required in terms oftransparency. Everybody isin the learning process.”

Mohamed A. AlabbarChairman, Emaar Properties,United Arab Emirates; Memberof the Executive Committee ofthe Arab Business Council

The Women Leaders Programme of the WorldEconomic Forum gathered leaders - both men andwomen - from government, business and civil societyto examine the region's gender gap. For the first time,the Forum brought together women ministers fromacross the region to construct a five-year action planfor public- and private-sector policies to address theregion’s gender gap. The action plan will be a publicly

available resource, aimed primarily at promotinggreater cooperation and best practice exchangeamong the region's governments in their effortstowards greater gender equality.

Box 2: The Women Leaders Programme

The oil price windfall offers countries in the Middle Eastthe opportunity to promote and support genuinereform. But investing for the future may not be easy,given the deficiencies in capital markets and theperceived high-risk business environment. To varyingdegrees, countries are stepping up governancestandards, transparency, disclosure and enforcementof regulations. At this stage, the focus of investmentsshould be on projects that will promote growth withsocial equity. While governments should provide theright climate, businesses should take the lead in drivinginvestments and pushing for reforms in what couldprove to be a significant period of transition for theregion.

The unprecedented oil price windfall has led to a sharprise in liquidity in the Middle East, as well as increasedgovernment revenues in oil-producing countries andsome budget surpluses. The sharp increase in privateequity funds from US$ 400 million in assets undermanagement in 2000 to more than US$ 1 billion today— some reports claim the actual figure is five timesthat — indicates how much of the region is awash withcash. Unlike the petroleum boom of the 1970s, muchof the capital is staying in the region, although someestimate that US$ 800 billion or more of Arab money isinvested outside the region (see Box 3).

“In the Middle East,” lamented Aladdin Saba,Chairman, Beltone Financial, Egypt, “we have aproblem of too much money chasing too few deals.”

This should not be the case, but the lack of deals thatare attractive to private investors only highlights theshortcomings of a region where there is much thatneeds to be funded. Indeed, this embarrassment ofriches could turn into a tragic shame if the region failsto take full advantage of the oil boom to speed up its

“How much is the Arabworld investing in researchand development? Muchless than the rest of theworld. We’re not thinking ofour grandchildren or ourneighbour’s grandchildren.Investing in the future iskey.”

Khalid Abdulla-JanahiChairman of the ExecutiveCommittee, Shamil Bank ofBahrain, Switzerland; Vice-Chairman of the Arab BusinessCouncil

Asset managers, regulators, market operators and private-equity specialists found a common purpose when theymet for a WorkSpace session to find ways to enrich andstrengthen Middle East capital markets. Much of theestimated US$ 2 trillion that has accumulated in the regionhas been invested abroad due to an inadequateinvestment infrastructure. Despite this, participants shareda vision of more transparent, better-regulated, globally-integrated markets and strong regional asset managersacting as intermediaries for private investors.

Participants looked forward to capital markets fullyintegrated into global markets and enjoying high levels oflocal investor participation. One vision was of an Arabeconomic zone, underpinned by a single monetary policyand a single currency; another was of a regional stockexchange, with sector diversity and high levels oftransparency and liquidity (perhaps a Union of NorthAfrican markets).

However, participants recognized that the region needs toovercome significant obstacles, such as weak legalsystems, poor regulatory framework, inadequate corporategovernance and underdeveloped financial institutions, inorder to implement any of these visions. In particular, theyidentified a lack of investor education as a prime cause ofrecent volatility in stock markets.

Box 3: Challenges in the Evolution of Capital Markets

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$1.3 – 1.5 $0.5 – 1.1 $1.8 – 2.6100%

Geographic distribution of assets, 2005

Percent, USD trillions

Wealth held largely outside due to• Insufficient local investment opportunities

• Diversification of portfolios

• Concerns about region’s stability

Despite Great Regional Wealth Much Of It IsInvested Abroad

*Total wealth defined as investable assets in the form of cash and equivalents,

deposits, equities, bonds, real estate and other alternative investments (e.g. hedge

funds or private equity).

Sources: McKinsey analysis; Capgemini and Merrill Lynch World Wealth Report 2005;

BCG Global Wealth 2004; expert interviews.

10

Investing for the Future


global integration and support its transformation —in short, to pay for real structural reform andcushion its pain.

There are three concerns about investing — how toraise capital, where to put it and how to retrieve italong with earnings. The Middle East is deficient inall three aspects. For investors, the entry and exitpaths are limited; there is no pan-regional stockexchange of a scale comparable to financial hubsin Europe, North America and Asia. Regionalmarkets lack the disclosure standards andregulatory discipline afforded by world-classfinancial centres such as New York and London.Even public companies are unwilling or unable toprovide adequate and reliable information toinvestors, giving rise to volatile performance onregional bourses (see Figure 2).

To attract more institutional investors and promotestability, markets in the region need tighterregulations, stricter enforcement and dependablerule of law. “Companies don’t yet know what isrequired in terms of transparency,” explainedMohamed A. Alabbar, Chairman, Emaar Properties,United Arab Emirates; Member of the ExecutiveCommittee of the Arab Business Council.

“Everybody is in the learning process,” addedShaikha Al Bahar, Group General Manager, NationalBank of Kuwait SAK, Kuwait. “All of us here areagainst government intervention to influence prices,but the government should lay out the rules.”

Participants agreed that there are priorities forinvesting. Petroleum producers must abandon theiroverriding focus on oil and diversify, even if the US$70 per barrel price is an incentive to do otherwise.The danger is that the errors made during the1970s boom will be repeated and the windfallwasted. At that time, extra revenues were parkedoutside the region, with little deployed for domesticdevelopment.

In one session, Egypt’s Minister of Finance YoussufBoutros-Ghali warned that, in times of transitionand restructuring, the rich often get richer morequickly. The challenge is ensuring that the benefitsof investments and public spending becomeequitable. That means concentrating on basicpublic goods that promote growth and benefit asmany people as possible.

“The absolutely key items are institution building,education, infrastructure and health,” said ForumCo-Chair William R. Rhodes, Chairman, ChiefExecutive Officer and President, Citicorp Holdingsand Citibank, USA.

“Companies must have a culture of corporatesocial responsibility where they react when there isa need — for example, after a natural disaster —but also a proactive process involving ongoingengagement with community organizations,”reckoned Mazen S. Darwazeh, Chairman, HikmaPharmaceuticals, Jordan. Good citizenship amongArab enterprises is still developing and investing forthe future should not be the sole responsibility ofgovernment.

As Rhodes stressed, “We must grow the role of theprivate sector [from the empowerment of women toremedying the infrastructure deficit]. It is importantthat the private sector not only speak out but alsodo something.”

“If nobody else can do it, then government should.But it’s not their job to manage,” reckoned Arif M.Naqvi, Vice-Chairman and Chief Executive Officer,Abraaj Capital, United Arab Emirates. Governmentshould set the right conditions, but should neithertake a lead role in running ventures nor tellenterprises where to invest. Indeed, the privatesector is leading the current oil boom. There is noreason to turn back: let the power of business andthe markets drive the Middle East’s renewal.


Figure 2: Middle East Equity Indices: Volatile times

Source: Thomson Financial


The integration of the Middle East into the globaleconomy will deliver both benefits anddisadvantages. To make the most of globalization,the region must overcome obstacles includingnegative perceptions of risk, the poor image of theregion and the lack of capacity and necessaryinfrastructure to be a productive part of the globalsystem. Focus on political and security risks shouldnot obscure the fact that, even without thoseimpediments, investors are likely to unfavourablycompare the region to other emerging markets.The private sector must lead efforts to rebrand theMiddle East, address its competitive deficienciesand convince people that global integration is worththe risk.

Integration into the global economy is a challengefor anyone who dares to buy into the promise ofglobalization and contend with its risks. There arepotential pitfalls — investment losses, income gapsand diminished competitiveness. But isolation andthe status quo are not acceptable. As AnoushEhteshami, Head, School of Government andInternational Affairs, University of Durham, UnitedKingdom, concluded, “a fate worse thanglobalization is to not to be touched by it.”

For the Middle East, the touch of globalization hasto become an embrace. There has been progress— with eye-catching successes in Dubai, Jordanand Egypt, among others — but the basicimpediments remain: negative perceptions of risk,the one-dimensional image outsiders have of theregion and the lack of infrastructure, capacity andthe bricks-and-mortar facilities needed to be aproductive and plugged-in member of the globaleconomy.

According to the United Nations, the Middle East’sshare of global foreign direct investment rose to1.5% in 2004, up from 1% the year before. Thiswas far behind China (9.3%) and Southeast Asia(4.0%). The trade picture is more troubling. In 1981,the Arab world accounted for 10.7% of worldexports. Today, its share is down to 4.4%. Takeaway oil and that figure drops to 1.7%.

Image is a problem; many Arab leaders are decriedas inflexible, rich autocrats, their kingdomsatrophied. H.E. Sheikh Mohamed Bin Mubarak AlKhalifa, Deputy Prime Minister of Bahrain,complained that the Arab world is unfairly taggedas a source of oil and terrorism. He has a point, butZachary Karabell, Senior Vice-President, Co-Portfolio Manager and Senior Economic Analyst,Fred Alger Management, USA, made a morecompelling one. The hard truth is that, even if thepolitical and security risks disappeared, manyinvestors would unfavourably compare the regionagainst other emerging markets, particularly in

Global Integration

“To integrate into the globaleconomy is a challenge forevery country in theregion.”

Rachid M. RachidMinister of Trade and Industry ofEgypt

“A fate worse than globalization is to not to be touchedby it.”

Anoush EhteshamiHead, School of Government and International Affairs, University of

Durham, United Kingdom


terms of key investor concerns such as infrastructure,ease of access to capital, bureaucratic efficiency andeducation (see Figure 3).

Certainly, other regions want to deepen links with theMiddle East. The presence in Sharm El Sheikh of thePrime Ministers of Malaysia and Pakistan, as well as

ministers and senior officials from Japan, India,Singapore, France and the US, was testament to thisgoodwill and outreach.

However, investors’ perceptions matter. “A lot ofdollars are no longer going to the Middle East now thatHamas [won the elections in the PalestinianTerritories],” Khalid Abdulla-Janahi, Chairman of theExecutive Committee, Shamil Bank of Bahrain,Switzerland; Vice-Chairman of the Arab BusinessCouncil, conceded. “Perception and reality are notalways different.”

To make sure that they do match, participants at theSummit took initial steps to launch a private sector-funded branding campaign for the Middle East underthe banner Red Carpet In, Red Tape Out. The move isappropriate since the private sector must shed itscomplacency. The recent growth of private equity firmsand funds in the region is evidence that business isstirring.

“For the first time, we have seen a boom in this regionled by the private sector,” said Arif M. Naqvi, Vice-Chairman and Chief Executive Officer, Abraaj Capital,United Arab Emirates. Businesses are looking outward,applying pressure on governments to open up

markets. Indeed, the Forum’s platform for GlobalGrowth Companies showed heavy interest in globalexpansion by Middle East companies (see Box 4), butcalled for greater efforts to create policy measures to

14.9%

13.1%

10.4%

8.9%

8.2%

7.7%

7.1%

6.9%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Inefficient government bureaucracy

access to financing

Inadequately educated workforce

Restrictive labour regulations

Poor work ethic in national labour force

Tax rates

Tax regulations

Inadequate supply of infrastructure

Percent of responses

Source: World Economic Forum's Executive Opinion Survey 2005

Figure 3: The Most Problematic Factors for Doing Business in the Middle East and North Africa Countries

Source: 2005 World Economic Forum’s Executive Opinion Survey

Twenty leaders of the most rapidly expandingcompanies in the Middle East convened to discusschallenges faced by Global Growth Companies. GlobalGrowth Companies are companies that havedemonstrated a clear potential to become leaders inthe global economy within five years. The companiesenjoy a strong industry or regional market presenceand have both the desire and ability to become aglobal champion.

The assembled executives highlighted the followingchallenges that they face in their continued expansionand internationalization:

To reach the critical size required to access financialmarkets and build strong brands, the Middle East willneed to become a less heterogeneous market.

Local management courses and Masters programmesmust be developed to address the lack ofmanagement talent and brain-drain.

During the next year, the World Economic Forum willconduct workstreams to address some of these issuesand will develop a specific thematic track for GlobalGrowth Companies at our next meeting in Jordan, inMay 2007.

Box 4: The Community of Global Growth Companies

Distribution of Global Growth Companies

Source: World Economic Forum


assist them. This (in part) explains the growingnumber of regional and bilateral free tradeagreements that Arab countries are forging even asthey participate in multilateral negotiations. SaudiArabia’s accession to the World Trade Organizationwas a recent milestone.

Business is also promoting initiatives, such asNational Competitiveness Councils, to assess andbenchmark competitiveness. Efforts that areunderway to raise standards of governance,transparency and accountability must be steppedup. Governments, meanwhile, are eager forcompanies to go global — and enterprises areresponding. “This is the first time I have seen mygovernment support me,” Naguib O. Sawiris,Chairman and Chief Executive Officer, OrascomTelecom Holding, Egypt, declared.

The makeover of the Middle East, however, has tobe designed and driven by the private sector. Thisrequires corporate citizenship and daringleadership. Fortunately, the region is blessed with alarge pool of skilled managers and workers. Thereis also a growing willingness to adopt amanagement mentality that emphasizes humanresource development and equal opportunity.

Yet business and government leaders will have toconvince citizens that the benefits of globalizationoutweigh the risks. Developing a regional scenarioroad map may help; indeed, the Forum’s privatemeeting on the evolution of Gulf CooperationCouncil (GCC) countries addressed the criticaluncertainties underpinning issues of a fullydiversified, prosperous economy within the globalcontext (see Box 5).

“When you talk about globalization, it does notnecessarily attract a lot of people,” Rachidacknowledged. “The challenge is how to take thepeople with us.” To shift mindsets will requireintegrating global values to turn the new generationinto promising globalization-ready citizens. As H.M.Queen Rania of the Hashemite Kingdom of Jordanput it, “We have to instil values such as toleranceand respect for human rights to make the process[of reform] sustainable, successful and genuine.”

The private workshop held in Sharm El Sheikh was akey event in the process of developing scenariosexamining the evolution of GCC countries within theMiddle East regional and global context. Participantsstarted with about 50 key drivers identified in apreliminary research phase and initially grouped in 10clusters (see below). Each driver was introduced anddebated among participants and, based on thediscussion, additional drivers were introduced whileothers were re-grouped. The objective was to reach acommon understanding of all the relevant driversaffecting the region.

The central questions that the scenario projectattempts to answer are whether the region will be ableto develop and implement a vision to steer itselftowards economic diversification and prosperity, andwhether the GCC countries can integrate effectively into theglobal context.

Box 5: Scenarios for the Gulf CooperationCouncil (GCC) Countries

Top-level clusters of key drivers forGCC Countries


More than half of the Arab world is under 18 years ofage; over a third is under 13. This demographic posestremendous challenges but also offers greatopportunities for the Middle East and North Africa.There is little indication that the region will make up the80-90 million new jobs that will be required over thenext two decades. However, with new educationinitiatives, better inter-generational dialogue andinnovative technologies, the youth of today canbecome the region’s civic-minded leaders of tomorrow.

EducationImproving educational systems remains a crucialimperative. According to a 2005 World EconomicForum survey, an inadequately educated workforceconsistently ranked among the most glaring obstaclesto doing business in the Middle East and North Africa.While unemployment is a huge problem, manycompanies in the region lack appropriately-skilledemployees. Existing programmes must be overhauledto incorporate private sector input and vocationaltraining in order to reduce the current skills gap.Benchmarks for achievement are needed, as are e-learning programmes, peer-to-peer counsellinginitiatives and “second-chance” safety nets so thatevery student has ample opportunities to learn anddevelop vocational skills.

“Governments must not be afraid of free thinkers,” saidSoraya Salti, Senior Vice-President, Middle East andNorth Africa, JA Worldwide, Jordan. Classes should bereformed to encourage critical thinking and dissentingviewpoints. Arab societies too often stifle creative andentrepreneurial impulses among young people.

The Forum, which this year included a quorum ofyouth from the region, launched the Egypt EducationInitiative whose first phase will benefit 820,000 childrenin 2,000 schools and over 300 colleges. Otherinitiatives include INJAZ, which teaches students aboutthe needs of the private sector by bringing studentsinto contact with the companies themselves.

PeacemakingReforming education to improve job prospects will aidin a second youth-oriented goal: creating a generationof peace-builders. Youth who see a future to live forwill be less likely to seek out a cause to die for. Today,young people’s expectations for future employment arelower in the Middle East than in any other part of theworld.

Youth and Understanding

Soraya SaltiSenior Vice-President, MiddleEast and North Africa, JAWorldwide, Jordan

Suzanne MubarakFirst Lady of Egypt


Too often, the skills to get ahead involve networkingalone, and those not born with access are quicklyalienated. Labour markets must be opened toencourage entry into the private sector rather thanthe bloated and non-meritocratic public sphere.Students must be taught the skills for a neweconomy. Entrepreneurial training and ground-leveljob programmes can work, but must be scaled up.

“If we want peace,” said Suzanne Mubarak, FirstLady of Egypt, “we must teach peace.” Curriculamust be reformed to embrace diversity and teachthe common values of all religions, rather than thevalues of one over another. Certain young peopleneed to be particularly targeted. A Palestinian youthleaving an Israeli prison is at risk of succumbing tointolerance as is his counterpart leaving the Israeliarmy. But efforts to teach peace must extend to allsegments of all societies. Islam has a long historyof embracing common humanity, and learning fromand respecting followers of other faiths. Historically,scientific advancement came with culturaltolerance.

“We should revive values that make this civilizationgreat,” said Ismail Serageldin, Director, BibliotecaAlexandrina, Egypt. Educational reform shouldencourage a dialogue between cultures rather thana clash of civilizations. In support of this impulse forcross-cultural understanding, the World EconomicForum agreed to assist developing, under theCouncil of 100 Leaders (C-100), a web-basedinformation portal and local communitiessupporting its work in the West and Islamic worlds(see Box 6).

CitizenshipA recent study revealed that young people aremore politically active in developing countries thanin the developed world. In a variety of ways, theyouth of today are already leading the chargetoward free societies in the Middle East and NorthAfrica. How the next generation behaves as citizenswill depend on education, but also on howgovernments, schools and families listen to youngpeople, as well teach them about their rights andobligations (see Box 7).

Sharm El Sheikh,Egypt, provided anexcellent venue forfruitful discussionsamong the Council of100 Leaders’ West-Islamic WorldDialogue community.Prime MinisterAbdullah AhmadBadawi of Malaysiaaddressed the C-100 community in their privatemeeting, stressing the need for dialogue to be “effective,focused and fruitful, leading to frameworks for concreteaction.”

The continued sense of commitment and enthusiasmwas clearly visible in all the meetings and thediscussions were open, engaging and productive. Theobjectives of the meeting were many but included howto place the C-100 as a hub of knowledge andinformation on the state of West-Islamic dialogue andcontinuing discussions on the work of the Educationsub-group to further develop the C-100 EducationProject.

Members fully endorsed the proposals for using the C-100 as a knowledge hub and as a platform for projectson education, as well as continuing its role as aclearinghouse for action-oriented projects that advanceunderstanding and cooperation. There was tremendoussupport for many activities, including highly practicalcommitments, such as technical help for creating awebsite and support in organizing local fund-raisingevents in several cities around the world.

Box 6: Communicating across the region: The Council of 100 Leaders (C-100)

Rabbi Awraham S. Soetendorp, JewishInstitute for Human Values, Netherlands

“In the Arab world, wehave a lot of seeds that arenot blooming.”

Nimah I. NawwabPoet, Saudi Arabia; YoungGlobal Leader


“Young people have a very big heart,” said Mostafa ElGendy, Member of Parliament, People’s Assembly ofEgypt, “and are much more open to change thanprevious generations.” All too often, however,governments approach youth as a threat rather than aresource. This leads to mutual mistrust, and meansthat states squander the political energy of the nextgeneration.

Pushing this change is the spread of InformationTechnology. From blogs to SMS messaging, newforms of communication mean that millions of youngpeople can connect instantly across boundaries ofculture and nationality. In 2004, only 4% of residents ofthe MENA countries were Internet users. Today, thenumber has grown slightly and demand for the Internetis booming.

Mostafa El GendyMember of Parliament, People’sAssembly of Egypt,

Gamal H. MubarakHead, Policy Secretariat,National Democratic Party,Egypt

To betterunderstand theneeds of the newgeneration in theMiddle East, theWorld EconomicForum invited anumber of youngstudents from theregion toparticipate in thetwo-day meeting.

By actively engaging regionalpoliticians from the Forum’s

Young Global Leaders community and participating invarious sessions (including New Approaches to FurtherEducation, or the Revolution will be Televised), thesestudents were able to share their vision for the future,their expectations from current leaders and theirconcrete plans for moving the youth agenda forward.

One key area for youth is education. In this context,launching the Egyptian Education Initiative will helpimprove schooling through Information andCommunication Technologies. The initiative will focuson different levels of education (pre-university, highereducation, lifelong learning and e-learning industrydevelopment), and in its first stage will impact 820,000students in 2,000 schools and over 300 colleges.

Box 7: Meet the Young: Youth Participation in Middle East

Saeed Al Muntafiq, Chairman ofthe Board, Young Arab Leaders,United Arab Emirates


Because of the many challenges facing the MiddleEast today, political and business leaders attendingthe Forum expressed a strong desire to movefaster on political participation and dialogue so thatissues related to democracy, peace and securitycan be advanced. While acknowledging thatdemocracy has been gaining momentum in theArab world, many leaders emphasized that changehad to come from societies themselves— on theirown terms and at their own pace. Much of thatchange, they said, needs to come through theparticipation of civil society.

In the Middle East, democracy, peace and securityseem as elusive as ever; compared to otherregions, the challenges of reform are great.However, many political and business leaders aremaking decisions that are defining a long-termvision of stability and prosperity for their countriesand region. With much of the dialogue at the WorldEconomic Forum on the Middle East focused onunrest in Iraq, the unresolved Israeli-Palestinianconflict and growing fears of a nuclear Iran, therewas a sense of urgency for countries to increasethe dialogue in a changing Arab world (see Box 8).

“The challenge is to make change irreversible andsustainable,” stated M. Shafik Gabr, Chairman andManaging Director, Artoc Group for Investment &Development, Egypt: Chairman of the ArabBusiness Council; Co-Chair of the World EconomicForum on the Middle East. Gabr and others seedemocracy, peace and security as interconnected,but that achieving these objectives will take time. Itwas widely acknowledged that reform is takingplace in the region, but that there is no “one-size-fits-all” approach.

The challenge in the Arab world is to managechange in a way that preserves the best in society,giving ordinary people greater freedom and choicewhile ensuring security and protection frominjustice. Many in the region realize the scope ofthese challenges and many governments arealready taking important steps towards economic,social and political reform; others are following.

“There are going to be problems and setbacks, butin any reform process leaders will have to makedifficult choices,” said Gamal H. Mubarak, Head,Policy Secretariat, National Democratic Party,Egypt. “Any political party or leader has to changehow they communicate if they want to convincepeople about the importance of a vision. Peopleneed to see results.”

While results may be slow in coming in somecountries, there is overall agreement that reform isnecessary and should include participation from allfacets of civil society, including non-governmentalorganizations, women and youth.

According to the IMF, more than half of the Arabworld is under 18 years of age. In the next 15years, the school-age population of the Middle Eastwill increase by 19% to 13.6 million people. Howwill they define the future?

“If we empower civil society to fill the politicalvacuum, the next generation will have choices andcan exercise their freedom. This is the way todemocratization,” said Mona S. Zulficar, Attorney-at-Law, Shalakany Law Office, Egypt.

Zulficar and others underlined the importance ofgender equality, noting that there can be nodemocracy without women sharing fairly in theprocess. According to the Inter-Parliamentary

Democracy, Peace and Security

During the WorldEconomic Forumon the Middle East,PalestinianAuthority PresidentMahmoud Abbasannounced aninternal dialogueaimed at unifyingthe Palestinianpolitical landscapein light ofincreasing frictionand violencebetween rivalparties.

“The dialogue is about unifying political positions,” saidPresident Abbas. While announcing the dialogue,Abbas reiterated his determination to seek a two-statesolution, reject violence and resolve the Palestinian-Israeli conflict through a peace process, in particular,by implementing the UN-supported roadmap.

“We have no way before us but to continue the peaceprocess,” said Abbas. “Israel should accept our call toreturn to the negotiating table.” A meeting between Israeli Deputy Prime Minister TzipiLivni and Palestinian Authority President MahmoudAbbas took place during the Summit, the first high-level meeting between the two sides in eleven months.

“The meeting was very important,” Livni said. “Ameeting between Israel’s Prime Minister and Abbas willbe the next step.”

Box 8: Dialogue on Peace and Security

Palestinian Authority President MahmoudAbbas and Israeli Deputy Prime Minister TzipiLivni


unifying the Palestinian political landscape in light ofincreasing friction and violence between rival parties.

On the subject of Iraq, some participants at theSummit looked at the formation of the newgovernment in Iraq — which includes the three mainfactions: Shiites, Sunnis and Kurds — as progress,despite ongoing violence. However, other participantsremained unconvinced that democracy, peace andstability would move forward as long as occupationcontinued.

“Despite the conflicts that still afflict this region, thefuture appears bright and full of promise,” concludedEgyptian President Hosni Mubarak. “Multilateralismand democratic international conduct are needed tofoster collective security and peace.”

Union, women hold only 6.8% of parliamentary seats inthe Arab states. At the Summit, the Women LeadersProgramme of the World Economic Forum broughttogether, for the first time, women regional ministers,who made a commitment to develop a five-year actionplan for public and private sector policies to addressthe region’s gender gap.

Democracy in the Arab world has been gainingmomentum, but many acknowledge that the processhas to be “home-grown” if it is to succeed.

“All [Arab] countries and societies want to move aheadand have their own view on how to do so,” explainedAmre Moussa, Secretary-General, League of ArabStates, Cairo. “Reform is something that we support,but we have to be cautious because of the fragility ofthe security situation and uncertainty on theinternational scene.”

This view is supported by the World Economic Forum’ssurvey on the Middle East, which showed that 41% ofparticipants said escalating violence in the Middle Eastwas a major strategic concern for business (see Box 9).Other participants echoed the sentiments of the ArabLeague Secretary-General, stressing that resolvingconflicts in the region — particularly the situation in Iraqand the Palestinian-Israeli conflict — is important ifdemocracy in the Arab world is to move in the rightdirection and to mitigate some of the effects ofinstability.

Although conflicts in the region are far from beingresolved, there were positive signs of movement in theright direction. The Forum brought top Palestinian andIsraeli leaders together for the first time in elevenmonths, which may pave the way for the President ofthe Palestinian Authority and the Prime Minister of Israelto resume political negotiations. In addition, thePresident of the Palestinian Authority, Mahmoud Abbas,announced the launch of an internal dialogue aimed at

Before the Summit, the Global Risk Programme of theWorld Economic Forum surveyed business participantsabout their perception of the broader strategic riskenvironment in which they lead their corporations.

Most respondents identified the escalation of violencein the Middle East and the rise of terrorism as keyconcerns. Violence and terrorism are a major concernfor almost 80% of those responding, supporting theargument that Middle East economies and businesscommunities can only prosper in a more stable politicalenvironment.

Over 25% of corporate leaders spend more than 10%of their company’s budget on ensuring businesscontinuity and attempting to diversify activities acrosslocations in order to balance their risk portfolio. Over25% of business leaders turn to the World EconomicForum to identify broader strategic risks when facedwith a strategic decision for their company.

Box 9: Global Risks and the Middle East

0% 10% 20% 30% 40% 50%

41%

38%

26%

21%

How concerned is your company aboutthese potential threats?

major strategic concern

Escalating Violence

Terrorism

Nuclear proliferation

Protectionism

“Home-grown decisions arelasting. Imposed decisionswill not stand the test oftime.”

Shaukat AzizPrime Minister of Pakistan


The World Economic Forum on the Middle East aimed toshape the regional agenda in pursuit of a more prosperousand peaceful future. The exchange of ideas and perspectivesmade possible by the interaction of high-level participantsfrom both the public and private sector is itself a valuablecontribution to this process. However, the meeting alsoproduced some important new achievements, initiatives andcommitments to work together going forward to continue thetransformation of the region.

What follows are the principle achievements that came out ofthe meeting to improve dialogue, society, business,investment and the ongoing work that participantsvolunteered to undertake with the Forum’s facilitation:

Dialogue and Society• The Forum hosted significant business and political

discussions among US, Arab and Israeli leaders, includingthe highest-level talks in 11 months between Israel and thePalestinian Authority.

• By linking a group of students with regional ministers fromamong the Forum’s Young Global Leaders community, weexpanded a valuable network to foster communication andexchange among young people.

• The Forum launched the Egypt Education Initiative tobenefit 820,000 children in 2,000 schools.

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

Business and Investment• The Forum took initial steps to launching a private sector-

funded branding campaign for the Middle East under thebanner “Red Tape Out, Red Carpet In”.

• The Forum recognized social entrepreneurs for theirachievements in promoting sustainable business practicesin Egypt.

• Egypt’s National Competitiveness Council published itsthird report.

• There was agreement to consider amendments to theopen skies policy for Egypt.

What the World Economic Forum Agreed to Facilitate:• Under the Forum’s Council of 100 Leaders, develop a

Web-based information portal. The Council will work withlocal communities across faiths to support its work.

• Launch a regional task force to tackle corruption.• Work with high-potential, high-growth companies to

develop a programme to help them integrate into theglobal economy.

Summit OutcomesDavos WorkSpace: Innovative Tools and Solutions for the Middle East

Workshops conducted in Sharm El Sheikh inMay 2006 by the World Economic Forum endedwith participants committed to the developmentof transport infrastructure and capital markets inthe Middle East. In addition, participantsdeveloped a plan for branding the region andidentified what is needed to stimulate MiddleEast innovation.

The collaborative efforts of participants wereharnessed in four sessions convened in theDavos WorkSpace entitled: Looking for the NextBig Idea, Marketing and Branding the MiddleEast, Challenges in the Evolution of CapitalMarkets and Rethinking Regional TransportInfrastructure.

Innovative SolutionsThe main thrust of each workshop was to findinnovative solutions to the challenges faced bythe region’s politicians, companies and other keydecision-makers in creating a better world for anew generation. Breakout discussions followedbrief presentations by industry experts.Participants were asked to share visions of 2020and to discover how, by working together, thosedesired visions might be achieved. Finally, thebreakout groups gathered together to presenttheir proposals and to discover how solutionscould be translated into action.

Box 5: Davos WorkSpace

World Economic Forum on the Middle East21


Acknowledgements

The World Economic Forum wishes to thank the following companies as Partners or Supporters of theWorld Economic Forum on the Middle East:

Strategic PartnersAccentureAudiBooz Allen HamiltonCACiscoThe Coca-Cola CompanyDubai HoldingEconomic Development Board of BahrainFluorHPInvestcorpKudelskiMcKinseyManpowerMerrill LynchNakheelQatar AirwaysSABICSiemensVolkswagen

Regional Summit PartnersAbraaj CapitalArtoc Group for Investment & DevelopmentEFG – Hermes HoldingEmaar PropertiesGulf Finance HouseHSBCNational Bank of KuwaitOrascom Telecom HoldingPADICOPWC LogisticsTelecom Egypt

Summit SupportersAlshaya GroupArab African International BankCommercial International Bank (CIB)MTN Group

Service ProviderBarco

Official CarrierEgyptair

_________________________________

The World Economic Forum would like to thankthe Government of Egypt for hosting its meetingon the Middle East in Sharm El Sheikh. We areparticularly grateful for the support of H.E. RachidM. Rachid, Minister of Trade and Industry ofEgypt.

The Forum also recognizes Egyptian TV andRadio Unit (ERTU) as host broadcaster for theWorld Economic Forum on the Middle East, andthanks Nestlé for its in-kind support.

Writers

Alejandro Reyes

William Montague

Mark Schulman

Benjamin Skinner

Vidhi Tambiah, Associate Director, Global Agenda

Report Contributors

Sherif El Diwany, Director, Middle East & North Africa and Arab Business Council

Saman Ahsan, Global Leadership Fellow, C-100

Sven Behrendt, Senior Project Manager, Global Risk Network

Soren Bested, Global Leadership Fellow, Tech Pioneers & Global Growth Companies

Thea Chiesa, Senior Community Manager, Aviation, Travel & Tourism

Daniel Davies, Programme Manager, Middle East & North Africa

Sarah Saffar, Senior Programme Coordinator, Global Agenda and Open Forum

Karim Sehnaoui, Global Leadership Fellow, Arab Business Council

Anand Sunderji, Community Manager, Investors

Saadia Zahidi, Global Leadership Fellow, Women Leaders Programme

Peter Torreele, Managing Director

Editing and Production

Alicia Bartlett, Icon Design

Janet Hill, Editor

Kamal Kimaoui, Associate Director, Production and Design

Fabienne Stassen Fleming, Senior Editor

Vidhi Tambiah, Associate Director, Global Agenda

Yann Zopf, Media Manager

Photographers

Shawn Baldwin

Pedro Costa Gomes

Dana Smilley

Tara Todraw-Whitehill

Contributors

The World Economic Forum is an independentinternational organization committed to improvingthe state of the world by engaging leaders inpartnerships to shape global, regional andindustry agendas.

Incorporated as a foundation in 1971, and basedin Geneva, Switzerland, the World EconomicForum is impartial and not-for-profit; it is tied tono political, partisan or national interests.(www.weforum.org)

world economic forum on the middle east 2006

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