US embassy cable - 04AMMAN2554

UNCLAS SECTION 01 OF 03 AMMAN 002554 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ASEC, EAID, ECON, JO, KISL, KPAL, KWMN, PGOV, PREF 
SUBJECT: AQABA AUTHORITIES CONFRONT SOCIAL, REGIONAL 
CHALLENGES 
 
REF: AMMAN 2553 
 
------- 
SUMMARY 
------- 
 
1.  (SBU)  Despite significant achievements in the three 
years since the creation of the Aqaba Special Economic Zone 
(ASEZA), major social and regional security issues remain. 
Commissioners say one of their greatest challenges is 
managing the delicate balance of economic openness and the 
needs of a socially conservative society.  ASEZA authorities 
acknowledge that communication with Aqaba residents must take 
higher precedence as they move into the next phase of the 
development plan, and probably the biggest unanswered 
question is the fate of Aqaba's poorest neighborhood, 
Shalala.  Given Aqaba's increasing strategic importance and 
growing regional instability, Commissioners say that 
enhancing security is of paramount importance as well. 
ASEZA's establishment is unique for Jordan, and represents 
the most ambitious experiment underway to realize King 
Abdullah's vision of economic prosperity and political and 
social advancement.  It also presents a snapshot of the 
broader challenges Jordan faces as it attempts to liberalize 
economically within a socially conservative society, and 
within an increasingly volatile region. 
 
This is the second of two messages resulting from a recent 
visit by ECON, PA, POL and USAID officers to Aqaba.  The 
first assesses the progress of ASEZA's economic development 
plan thus far and its ongoing challenges.  End Summary. 
 
------------------------------------------ 
BALANCING OPENNESS AND SOCIAL CONSERVATISM 
------------------------------------------ 
 
2.  (SBU)  The Aqaba Special Economic Zone Authority (ASEZA) 
has made significant gains in three years, but officials 
acknowledge that the thorniest problem it faces is ensuring 
respect for conservative social norms while creating an 
environment conducive to economic development.  ASEZA is 
trying to deal carefully with sensitive social issues -- such 
as whether to segregate or integrate public beaches, for 
example -- in order to avoid inflaming local sensitivities. 
However, the contrast in cultures is sometimes unavoidable, 
as is evident with recent influxes of Eastern European 
tourists, particularly Hungarians, who view Jordan as a cheap 
but exotic tourist destination.  Besides snide comments about 
scantily clad tourists traipsing through town and the 
inability of veiled local women to enjoy the beach in 
privacy, EmbOffs did not encounter significant concerns from 
local residents about the "clash of cultures." 
 
3.  (SBU)  The Commissioners, businesspeople, and Aqaba's 
politicians note that the city is still in an early stage of 
its development, and things could change as more foreign 
tourists flock to Aqaba -- which underscores the importance 
of handling sensitive issues carefully.  Local businesspeople 
say that their conservative society can mesh with the 
openness required of a resort town catering to foreign 
investors and tourists.  Aqaba's port location has given the 
residents unique exposure to outsiders that other parts of 
Jordan have not experienced. 
 
4.  (SBU)  ASEZA Deputy Chief Commissioner and ADC Head Imad 
Fakhoury acknowledges that time is not on the Commissioners' 
side because people are impatient and complain when they do 
not feel immediate benefits on a personal level.  He says 
that ASEZA officials subscribe to the "trickle-down theory" 
of economics, in that the initial benefits of the development 
plans are intended to benefit the wealthy, but eventually, 
tangible benefits will filter down to the lower rungs of 
society.  However, he recognizes that the average low 
salaries among the general population prevent many ordinary 
Jordanians from enjoying the new restaurants and shops, and 
he acknowledges resentment for this exists among some 
Jordanians (inside and outside of Aqaba). 
 
------------------------------------- 
ENSURING THAT WOMEN AND YOUTH BENEFIT 
------------------------------------- 
 
5.  (SBU)  Liali Nashishibi, President of the Aqaba Business 
Professional Women's Club and chief of public relations at 
the Movenpick Hotel, told EmbOffs that the conservative 
nature of Aqaba's society, particularly norms regarding 
women's role in the workplace, could affect the integration 
of women into the workforce.  She said that most Western 
hotels, including the Movenpick, will not hire veiled women 
for jobs that require interaction with hotel guests.  She 
believes more training programs focusing on integrating women 
into the various parts of the workforce will be crucial to 
support ASEZA's development plan.  A dearth in funding for 
such programs -- which she griped has often been focused on 
the needs of Amman-based NGOs -- has always been a major 
stumbling block. 
 
6.  (SBU)  Dr. Mozfi Amyan, Dean of al-Balqa' College of 
Aqaba, believes that expanding educational opportunity for 
Aqaba's youth -- especially women -- is key to ensuring the 
population is integrated into the development process. 
Al-Balqa' established the Aqaba campus in 2001, and is the 
only institution of higher learning in the city.  Dr. Amyan 
lauds the efforts to revitalize Aqaba's tourism sector and 
accordingly, has restructured the college's curriculum to 
better prepare students to enter the service industry.  The 
school currently accommodates 450 students in two rented 
buildings, and has submitted a proposal to the Planning 
Ministry to build a larger campus, which will include 
facilities to accommodate students of hotel management and 
tourism.  He said Aqaba residents have been hearing for 
"years" that an American University modeled after those in 
Beirut and Cairo will be built in Aqaba, but they know 
nothing concrete about the plan. 
 
-------------------------------------- 
AQABA'S POOR: WHAT TO DO WITH SHALALA? 
-------------------------------------- 
 
7.  (SBU)  In the midst of the growth and symbols of 
prosperity in Aqaba, there lies an economically-depressed, 
teeming community called Shalala, which is comprised mostly 
of Palestinian refugees from Gaza.  Unlike refugees from the 
West Bank, Gazan refugees do not hold Jordanian citizenship 
and are not eligible for GOJ services such as health care and 
public schools.  According to the GOJ, the total refugee 
population in Aqaba is 16,500 registered with UNWRA, plus 
7,000 not registered (some refugees also live in the "old 
city" separate from Shalala).  However, because of 
long-standing budget issues, UNWRA does not provide the Aqaba 
refugee community with services there. 
 
8.  (SBU)  During a visit to several small businesses in 
Shalala, we heard no criticism of the wider development plan 
for Aqaba; we heard satisfaction with the physical changes 
they see in their city.  However, their fate remains unclear. 
 ASEZA has plans to relocate the residents of Shalala to a 
projects-style housing complex in another area of the city 
called Harahfiah.  A tender for project management of the 
1800-unit complex has already been announced and ASEZA 
expects soon to announce the manager, who in turn will put 
out a tender for construction.  The local community does not 
appear well informed about the housing plan.  Shalala rests 
on prime real estate with an exceptional view of the Gulf, 
and ASEZA is considering transforming the area into a tourist 
attraction filled with souvenir shops and small restaurants, 
in order to preserve its "old Aqaba" character, according to 
one ASEZA official. 
 
9.  (SBU) Until now, it appears that no one in ASEZA has 
consulted with Shalala residents for their input.  Shalala 
residents say that they have heard bits and pieces on 
television (although they did not elaborate about what they 
heard) and did not express any concerns.  Aqaba business 
developer Ziyad al-Shweikh said the details of the final plan 
for Shalala have not been announced, though speculation in 
the community is that they may be moved to high rise 
apartments near the airport, a prospect that he believes will 
be unacceptable to most residents once ASEZA tries to 
implement the plan.  He explains that many are simple people 
from rural backgrounds that would fight leaving their homes 
if they thought their lifestyle would change.  Many breed 
farm animals and have small businesses that they would not be 
able to maintain in an apartment setting.  Despite the dismal 
living conditions, many in the 50-year-old community would be 
loathe to leave their neighborhood made up of extended 
family, neighbors, and friends. 
 
10.  (SBU)  Al-Shweikh warns that the lack of communication 
with members of the Shalala community as ASEZA develops a 
plan for Shalala residents provides an opportunity for ASEZA 
critics to make political hay of the issue.  Although he 
doesn't believe an extremist element exists in Aqaba, he 
warns that open discussion with the Shalala community about 
its future is imperative to prevent the Islamists from 
emerging as their key advocate.  Aqaba MP and IAF member 
Shaykh Bader al-Riyati is one of the few outspoken advocates 
for the poor of Aqaba.  Without alternative support, the 
people will increasingly look to him for help.  Many of our 
interlocutors emphasized that Shaykh al-Riyati in particular 
works tirelessly to advocate on behalf of the poor in Aqaba 
and that he enjoys a good reputation among the population. 
For his part, Shaykh al-Riyati acknowledges he spends as 
little time as possible in Amman (just when Parliament is in 
session) so that he can be available for his constituents in 
Aqaba, who seek his help at all hours of the night.  He told 
EmbOffs that he is forced to address pleas for help 
(particularly about jobs) that the authorities seem 
ill-equipped to handle. 
--------------------------------------------- --- 
REGIONAL POLITICS, SECURITY CONCERNS INESCAPABLE 
--------------------------------------------- --- 
 
11.  (SBU)  Several of our interlocutors emphasized that the 
potential for Aqaba -- and Jordan as a whole -- would be 
enhanced exponentially if regional stability could be 
achieved, especially with regard to the Palestinian-Israeli 
conflict.  They say ongoing instability in Iraq also hurts 
ASEZA's efforts to market Aqaba as a launching point into the 
Iraqi market. 
 
12.  (SBU)  The increased economic activity in Aqaba enhances 
the strategic importance of the port, and regional realities 
combine to make security a growing priority for ASEZA.  Soror 
says the port is in compliance with IMO security regulations, 
but that enhanced security measures, including beefing up the 
military security presence, are under consideration for the 
port area.  Bilal Bashir, Commissioner for Environment, 
Regulation and Enforcement, says that ASEZA is considering 
wide security measures for the entire Aqaba region. 
Israeli-Jordanian border and maritime security cooperation 
remains excellent, but Fakhoury says that Israeli security 
concerns have prevented Israel thus far from signing on to 
ASEZA's vision of inaugurating Aqaba's international airport 
as a joint "peace airport." 
 
------- 
COMMENT 
------- 
 
13.  (SBU)  ASEZA's establishment is the most ambitious 
experiment underway in Jordan to realize King Abdullah's 
vision of economic prosperity and political and social 
advancement.  It also presents a snapshot of the broader 
challenges Jordan faces as it seeks political liberalization 
in a socially conservative society and in a volatile region. 
ASEZA will have to handle sensitive social issues and improve 
communication with the local community to give them a sense 
of "ownership" in ASEZA and to offset the Islamist influence 
in Aqaba. 
Visit Embassy Amman's classified web site at 
http://www.state.sgov.gov/p/nea/amman or access the site 
through the State Department's SIPRNET home page. 
GNEHM