JEDDAH, 12 February 2006 — Makkah Governor Prince Abdul Majeed yesterday emphasized Saudi Arabia’s leading role in the Islamic world. “This leadership position demands that we stand firm in the face of challenges,” he said in his opening address at the 7th Jeddah Economic Forum last night.

Prince Abdullah ibn Fahd ibn Muhammad, undersecretary at the Makkah governorate for security affairs, read out the governor’s speech in which he stressed the need for staying in step with global changes. But such initiatives should respect cultural and intellectual diversity, he added.

Prince Abdul Majeed said dialogue and intellectual exchange were essential for economic progress. “Means of dialogue and intellectual exchange will contribute to the process of economic and social building for the future,” the governor said.

The three-day forum began its sessions in the morning, with a senior UN official saying Saudi Arabia is at a crossroads with three challenges. “The Kingdom faces the challenge of locating itself in a rapidly changing global environment where there is confrontation between global values regarding human rights and local values and traditions,” Thoraya Obaid, undersecretary general at the United Nations, said.

Obaid said youth, male and female, will continue to increase in numbers and therefore create a need for more opportunities while also providing necessary services for society. The third is globalization, which is a two-edged sword, with human rights.”

The real issue is the frustration within a society that requires management for social justice by eliminating poverty, protecting the weak, supporting women and youth and protecting the rights of citizens, Obaid said while speaking on “Saudi Arabia in the global village”.

“There is a need for an atmosphere that allows open dialogue between members of society at all levels and between people and the government,” Obaid said.

Earlier, in the day’s first session on “Saudi Arabia — Vision 2020,” Culture and Information Minister Iyad Madani made a reference to the Kingdom’s ongoing all-round development and explained how it was trying to find its identity in the world.

He talked about the challenges facing the Kingdom and the rest of the world. He referred to various issues that confronted the citizens, one of them being women not allowed to drive.

“There is nothing in the law that prohibits women from applying for a driver’s license,” Madani told a packed audience at Jeddah Hilton, the venue of the three-day forum. “If the traffic director turns down your request, approach him and try to sort out your problem. There is nothing in the law that prevents women from applying for a driver’s license.”

Madani urged women to seek more representation in nongovernmental organizations (NGOs) as a prelude to running for office. “The initiative should be taken by women activists,” he said, adding that doors, if not wide open right now, are partially open.

“Greenfields for the future — the King Abdullah Economic City” was the theme of a session that followed, with Saudi Arabian General Investment Authority Governor Amr Al-Dabbagh mentioning the principles behind the decision to launch King Abdullah Economic City (KAEC) in North Jeddah.

An eye-catching model of the city is displayed near the main door to the Hilton Hall, the venue where Mohamed Alabbar, director general, department of economic development, government of Dubai and chairman, Emaar Properties, held an impromptu press conference.

Former German Chancellor Gerhrad Schroeder spoke about recognizing diversity in a globalized world. He said that politicians were called upon to convince their people of the great opportunities generated by global business activity and world trade while also protecting national identity and cultural diversity. He also expressed the need to respect religious beliefs and shared with the Muslims dismay at the Danish cartoons.

Schroeder said, “We have to accept Hamas’ right to exist, that it should stop the violence and a stable democratic society should be supported.” As for Iraq, he said what was needed was its development to help the Iraqis. Regarding Iran, he said it had the right to use nuclear power but not to build nuclear weapons. He objected to the talk of a clash of civilizations and instead called for a focus on the common grounds between cultures to live in peace and justice.

Mohammed Al-Jasser, vice governor of the Saudi Arabian Monetary Agency (SAMA), speaking at a session titled “Public Private Partnership: Financing Infrastructure” pointed out that mega projects financing had been in great part the responsibility of the government for a long time. Local banks largely assumed private financing for mega projects in the Kingdom, which only offered short and medium-term loans. “We’re issuing new licenses for foreign banks so that more private finance will be available for mega projects,” he added.

Meanwhile, Abdullah Al-Muallami, chairman of JCCI, said the countries that published the sacrilegious cartoons depicting the Prophet Muhammad (pbuh) had not done enough to contain the crisis. This resulted in reactions all over the Muslim world.

Turkish Deputy Premier and Foreign Minister Abdullah Gul also blamed officials of the Western countries for worsening the cartoon crisis. “If they had condemned the cartoons, things would not have reached this stage,” he said.

— With input from Khalil Hanware, Maha Akeel, Samir Al-Saadi, K.S. Ramkumar