DAVOS, Switzerland, 23 January 2008 — As 2,500 world leaders gather today at the World Economic Forum (WEF) in this picturesque mountain village, stock indices are plummeting around the globe. Although the forum’s theme focuses on the power of collaborative innovation, the most likely topic will be political and economic tensions that threaten global prosperity.

Now, in its 38th year, participants from 88 countries are expected to attend the forum. Among the delegates are 27 heads of state, 113 Cabinet ministers, along with religious leaders, media personalities and heads of non-governmental organizations. About 60 percent of the participants are business leaders drawn principally from WEF members — 1,000 of the foremost companies from around the world and across all economic sectors.

“The annual meeting gives all of us a chance to understand and shape the global agenda for the year ahead and beyond, serving global society by making sense of a rapidly changing world and harnessing collaborative innovation to the benefit of us all,” WEF Executive Chairman Professor Klaus Schwab told a news conference.

In an interview with London’s Financial Times yesterday, Schwab said this year’s highlights will include the state of the world economy and global warming — two important topics for discussion.

“That’s what makes Davos so special — it’s really an interdisciplinary meeting,” Schwab told Financial Times. “I would go so far as to claim that it is now the most comprehensive annual meeting in the world. I use the term cautiously, but the WEF today is almost an international organization. I always insist the forum is not a decision-making body. The WEF is a body that enlightens people — that helps them to make better informed decisions. The rest is up to them.”

The opening session examines climate change and terrorism and features a speech by US Secretary of State Condoleezza Rice. Pakistan President Pervez Musharraf, UK Prime Minister Gordon Brown and UN Secretary-General Ban Ki-moon will also be there. Henry Kissinger, former American secretary of state, and former British Premier Minister Tony Blair are helping to chair the event.

Other heads of state participating are Malaysian Prime Minister Abdullah Badawi, Palestinian Prime Minister Salam Fayyad, Afghan President Hamid Karzai, Philippines President Gloria Macapagal Arroyo, Jordan’s Queen Rania and Qatari Prime Minister Hamad bin Jassim bin Jabr Al-Thani.

Among the top-ranking Saudis expected to attend are Princess Lolwah Al-Faisal, vice chair of the board of trustees and general supervisor of the Jeddah-based Effat College, Finance Minister Ibrahim Al-Assaf, Minister of State Abdullah Zainal Alireza, Supreme Economic Council Secretary-General Abdul Rahman Al-Tuwaijri, Saudi Arabian General Investment Authority (SAGIA) Governor Amr Al-Dabbagh, Xenel/Saudi Cable Company Chairman Khaled Alireza, Saudi Basic Industries Corp. CEO and Vice Chairman Mohamed Al-Mady, Saudi Aramco President Abdallah Jum’ah, Olayan Financing Company CEO Lubna Olayan and Muna Abu Sulayman, executive manager of Strategic Studies and Research Initiatives at Prince Alwaleed Bin Talal’s Kingdom Holding Company.

The forum will serve as a barometer of business confidence. As management from more than 1,000 of the world’s largest companies meet, the mood in Davos may help to gauge whether the financial market turmoil will have a long-term impact on profits and investment decisions. A year ago, most economists in Davos expected the global economy to continue its five-year run of strong growth. The sub-prime crisis in the United States, the resulting global credit crunch, and the flight from risky investments put an end to that.

Microsoft founder Bill Gates has promised to deliver a keynote speech on ‘remaking’ capitalism for the 21st century. His speech comes at a time of a rapid shift in global economic power. Already, 70 of the world’s top 500 companies hail from emerging markets, including Saudi Arabia, China, India and South Korea, turning them both into competitors and potential markets of Western industrialized countries.