Economic ties can improve US-Arab relations, say experts

Sherine El Madany
5 Min Read

CAIRO: “It is difficult to change US public opinion of the Middle East, [and] the opposite is also true, said Amr Moussa, secretary-general of the Arab League.

“The main problem is that we do not see eye to eye on many issues. There is suspicion and tension [from both sides].

Moussa’s remarks were made during the fourth annual meeting of the Arab Business Council (ABC) of the World Economic Forum – an initiative formed by top Arab CEOs in 2003 to advance economic and governance reform agenda through collaborative partnerships between business leaders and governments.

While searching for common ground for US-Arab relations post 9/11, political and business experts agree that there was a loss of public support in the process.

Moussa referred to the US policy towards the Arab-Israeli conflict, which he described as being one-sided and biased towards Israel. “It does not only cause tension, but it also changes the image of the US in the Arab world.

He stressed the need to eliminate US double standards towards the Middle East and Israel in terms of nuclear programs. “We do not [understand] a policy that tells us there are good nuclear programs and bad ones. They tell us that the one in Israel is good and the one in Iraq is bad.

For any policy to be successful, he said, public opinion must be positive. “But the US policy lost the public opinion in the Middle East. We do not understand nor appreciate the way the nuclear issue is being dealt with.

Arab nations would not stay behind and wait while Israel possesses a strong nuclear program, he added.

“Either Israelis [get included in the equation], or there will be nuclear programs replicated in the region, and Iran is one example.

The second reason he gave for a heightened tension in relations was the US-led invasion of Iraq. “In my opinion, and I will continue to say, it was a wrong decision to invade Iraq. It opened the gates of hell.

He explained that without national consolidation, a new Iraq would not be created. “The US can participate in that and help us, Arabs, in creating a new Iraq. [but it first] has to accept that Iraq is an Arab country.

Still, Moussa said, it is not impossible to change that negative image of US-Arab relations. “We can do it together if we have strategic dialogue that [puts] us on the right track.

On the other end of the spectrum, there exists a tenuous image of the Arab world in the US, which is, as experts explain, triggered by lack of knowledge and understanding.

“Your image still suffers when you do not have freedom of speech and at the same time allow fatwa to kill Americans, said Les Janka, vice president of NCS Operations in Saudi Arabia. “Lots of work needs to be done on both sides.

The silver lining, however, is that relations can be improved by enhancing economic ties and investment relations.

“In this area, business can play a key role because it brings people in direct contact, and mutual interests come to play, Janka clarified. “Nothing changes US perception more than coming to the region.

He emphasized the importance of establishing chambers of commerce that stand ready to promote economic and business relations, mainly in trade and investment.

However, just as business can affect politics, financial and economic relations can be vulnerable to unstable political situations.

“Politics can make business more difficult. Conflicts in Iraq, Guantanamo Bay, and Abu Ghraib can complicate businesses, said David Hamod, president and CEO of the National US-Arab Chamber of Commerce. “Similarly, issues like intellectual property rights, promoting governance, and enhancing transparency affect US business relations.

On that note, speakers explained that economics and politics are closely linked.

“Economic reform goes hand in hand with political reform, said Mohamed Kamal, head of the youth committee at the National Democratic Party. “Democracy is the right form for economic development. Foreign investors are not only attracted by cheap labor, but also by transparency of legislation and taxation, ease of doing business, and so on.

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