ASAD EDUCATION
CENTER INAUGURAL
SEMIANAR:
PRESENTATION
SUMMARIES
The George Washington University
College of Professional Studies
June 27, 28, 29, 2012
Table of Contents: Presentation Summaries
Law Presentations:
A Critical Look at International Law Practices of the United States
Jonathan Turley, Professor of Public Interest Law,
The George Washington University………………………………………………………………………………….3
United States and Saudi Arabia Comparative Legal System,
Eric Lewis, Partner, Lewis Baach pllc…………………………………………………………………………..…...4
The U.S. Legal System in Comparative Perspective,
Renee Lerner, Associate Professor of Law,
The George Washington University……………..………………………………………………………………..…5
Cultural Context and International Litigation
Eric Lewis, Partner, Lewis Baach pllc……………………………………………………………………….……….6
International Trade and Finance Law in Saudi Arabia,
James Filpi, Senior Attorney, Commercial Law Development Program (CLDP),
U.S. Department of Commerce……………………………………………………………………………………….7
Religion Presentations:
Strategies for Jewish-Muslim Reconciliation:
Reflections by an American Jewish Academic,
Robert Eisen, Professor and Chair, Department of Religion,
The George Washington University…………………………………………...……………………………….…8-9
Interfaith Dialogue: Some Major Developments in Catholic Teaching,
Wilhelmus ‘Pim’ Valkenberg, Ordinary Professor of Religion and Culture,
The Catholic University of America…………………………………………………………………..……....10-11
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King Abdullah’s Interfaith Dialogue Initiatives (KAIDI): Traditional Perspective
Fahad Alhomoudi, President, Western Studies Institute…………………………...………………...…...12
Islamic Ethics vs. Western Ethics: Black and White or Shades of Grey?
Shireen Hunter, Visiting Professor, Georgetown University’s
School of Foreign Serviceand Non-Resident Distinguished Scholar,
Center for Strategic and International Studies………………………………………………………….….....13
Religious Diversity and Religious Pluralism
Peter Phan, Chair of Catholic Social Thought,
Department of Theology, Georgetown University ………………………………………………….……….14
Business Presentations:
Middle East Managerial Values,
Liesl Riddle, Associate Dean of MBA Programs and Associate Professor of
International Business, The George Washington University…………………………………………..15
Focus on Petroleum,
Robert Weiner, Professor of International Business,
The George Washington University…………………………………………………………………………..…...16
Islamic Finance and the Growth of Islamic Capital Markets,
Michael Bennett, Head of Derivatives and Structured Finance,
The World Bank………………………………………………………………………………………………...………….17
Saudi Arabia’s Economy
Edward Burton, President and Managing Director,
U.S.- Saudi Arabian Business Council…………………………………………………..……………………....…18
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Jonathan Turley
A Critical Look at International Law Practices of the United States
Leading civil libertarian and columnist professor Jonathan Turley gave the keynote speech of the
Seminar. He discussed the growing criticism of the United States over alleged war crimes and
international law violations ranging from drone attacks to torture. Turley has been a vocal critic of
the Obama Administration’s national security policies as he was of the prior Administration of
George W. Bush.
Professor Turley outlined a number of U.S. actions and policies that he considers disastrous to civil
liberties and resulting in the American people losing touch with who they are. One such policy is the
use of drones to attack and kill suspected terrorists in a number of countries but especially in
Pakistan. According to Professor Turley, the United States would go to war if another country
violated its air space or attacked its soil by an armed drone. Yet, we do it to others all the time and
think nothing of it. Exacerbating the situation is the targeting and killing of U.S. citizens without
due process of law on the mere suspicion of committing terrorist activities.
Another policy which again is an act of war and just as disastrous to international law, according to
Professor Turley, is the computer virus attack on Iran which has resulted in the spread of these
viruses to other countries and even to allies of the United States. The Stuxnet and Flame “cyber
missiles” did not damage nuclear facilities and cause explosions in military bases in Iran only but
now have infected computers all over the world. Imagine our reaction if another country used cyber
war against our nuclear facilities and military bases!
Professor Turley is also very critical of the Obama Administration for continuing Bush
Administration’s policy of “enhanced interrogation” which he calls a euphemism for torture. He
says that not only torture is illegal based on U.S. and international law, but that the United States
prosecuted Japanese officers for water boarding Allied prisoners after the Second World War! And
yet we keep water boarding suspect terrorists.
In concluding his keynote address Professor Turley stated that he believes our leaders are creating
a more dangerous world by ignoring core international rules and policies that have long stabilized
the globe.
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Eric Lewis
United States and Saudi Arabia Comparative Legal Systems
In Eric Lewis’ presentation “United States and Saudi Arabia Comparative Legal Systems”, Lewis
contrasts the judiciary systems of the United States and Saudi Arabia. Lewis’ focus is on sources of
law, structure of courts, processes for dispute resolution, and administration of justice in each
country.
Main sources of law in the United States are the Constitution, state and federal statutes and
Common Law. In Saudi Arabia, Shari’a – the text of the Qur’an and the record of legal decisions by
the Prophet known as the Sunna – and codes and regulations are the main sources of law.
Regarding structure of the courts, state courts have general jurisdiction in the United States while
federal courts have limited jurisdiction. A number of specialized courts like bankruptcy courts and
administrative tribunals complete the picture in the United States. Although in Saudi Arabia Shari’a
courts are courts of general jurisdiction while specialized courts deal with specific issues such as
banking and securities disputes, there is often an overlap and confusion about proper jurisdiction
which leads to extensive collateral litigation and delays. On the important question of the ultimate
legal authority, in the United States it is the Supreme Court that applies and the ultimate law, i.e. the
Constitution. In Saudi Arabia the situation is more complex in that although the King is the highest
legal authority, he must defer to the Shari’a scholars in certain matters. The process for dispute
resolution In the United States looks at everything to find the truth including exchange of discovery,
all witnesses testifying in court if summoned and cross-examination by opposing counsel. In Saudi
Arabia, each side presents its best case and is not compelled to disclose adverse information.
Additionally, witnesses with an interest in the case are deemed biased and are not permitted to
testify. Questioning is also done by the court and not by the parties. On the issue of administration
of justice, technology and automation play an important role in the United States resulting in
transparency about court decisions, rules and statutory authorities. Judges are also experienced
lawyers and appellate courts exercise a strong supervisory role. In Saudi Arabia by contrast, courts
are not technologically sophisticated and everything is paper based which leads to court congestion
and delays. Judges, for the most part, are Shari’a scholars and appellate courts do not have the
authority that they do in the United States.
Lewis concludes by saying that Saudi Arabia delivers a different system of justice but it is a
functioning system that could be substantially upgraded through automation, active case
management, enhancing judicial training and development of written decisions.
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Renee Lerner
The U.S. Legal System in Comparative Perspective
Professor Renee’ Lerner’s presentation “The U.S. Legal System in Comparative Perspective” is an
introduction to the U.S. legal system compared and contrasted to legal systems based on the
Romano-German law.
Starting with The Constitution, Professor Lerner explained roles of legislation (Article I) and the
judiciary (Article III) in the U.S. System. In the United States or legal systems based on English law,
Case Law – law stated by judges in cases – is of primary importance. There are whole areas of law
that are almost entirely Case Law. That is why the Anglo-American law is also called “judge-made
law”. In the Romano-German systems by contrast, it’s the actual statutes and codes that form the
basis of the law. The dichotomy between state and federal laws is another feature of the U.S. legal
system which distinguishes it from the systems that are based on Romano-German law or
Napoleonic law. There are limitations on federal legislative power as some rights are reserved for
the states.
The structure of the federal judiciary is comprised of U.S. District Courts (trial courts, courts of the
first instance, organized by state), U.S. Courts of Appeal (11 regional courts plus one with
nationwide jurisdiction over certain matters), and the U.S. Supreme Court. In Common Law systems
such as that of the United States, appeals are for errors of laws only and do not pertain to facts.
There is also the concept of precedent which means that a judge must rule based on the rulings of
other judges who have presided over similar cases in the past. There is also an obligation to follow
the rules set out by a higher court – the hierarchy of courts principle. Additionally, all judges at
every level of the judicial hierarchy have the power to strike down laws that are in conflict with the
Constitution but the Supreme Court has the final say. Finally, another peculiarity of the U.S. system
is the judicial selection process. There is the federal model where the judge is nominated by the
president and confirmed by the Senate; there is election by the state legislature; and then there is
popular election for certain judges who must periodically run in elections in order to keep their
jobs.
Finally, Professor Lerner presented an overview of civil and criminal procedures in Common Law
systems and compared it with the Romano-German law systems. Jury trial and party control of fact
investigation and presentation are the two distinctive features of Common Law systems. In the
other system, the court and the judges do the investigation and juries are either absent or can be
overruled by the judge or the panel of judges.
Professor Lerner also enumerated the weaknesses of the American system: possibility of long,
expensive trials; the wealth effect where rich litigants can hire the best lawyers and poor
defendants get court-appointed lawyers who may not be well-prepared; the coaching of witnesses
and paying for expert witnesses by the opposing side; and that the discovery process can be
extensive, expensive and intrusive.
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Eric Lewis
Cultural Context and International Litigation
In Eric Lewis’ presentation, “Cultural Context and International Litigation”, Lewis argues that as
disputes become more global so does the complexity of the disputes. There is a struggle with
understanding foreign law and litigation within these foreign courts. Lewis focuses on the structure
for dispute resolution in the United States and United Kingdom and highlights the importance of
integrating cultural contexts into international disputes.
The United States and United Kingdom have a highly complex structure for resolving international
disputes. First all documented evidence must be presented whether or not it serves as a benefit or
hindrance to the side from which it will be presented. Producing all this documentation becomes
time consuming and a burden financially to all sides of the dispute so that all evidence is thorough
as possible. Then complex cross examination is involved and personal presence of all sides becomes
crucial in representing all sides of the dispute. This cross examination fully tests the truth of all
documentation ensuring all sides, views, and evidence is thoroughly examined. All claims spoken by
any side must be spoken in truth and prove true when compared to all evidence. Lawyers will
examine disputers thoroughly ensuring all sides of the dispute speak truthfully. Finally the outcome
is decided by a jury of one’s peers and therefore the more clearly the jury understands one’s side
the more it will help them to decide in their favor.
Many times disputes lack the integration of cultural context and it is important to incorporate
cultural context into the dispute to help fully understand and solve the dispute. Different cultures
have different sets of societal norms that define the actions of that culture’s population and
therefore standards vary across cultures. It is imperative to note the set of standards specific to a
group in order to best resolve disputes. Levels of trust and due diligence also vary across cultures in
business transactions so it is crucial to understand each culture’s standards of trust and due
diligence to complete successful business transactions.
Lewis concludes that we have two options for dealing with cultural difference when our courts are
dealing with legal standards. First we can “apply forum standards” in which all cultures are looked
at through the same standards and cultural contexts are ignored all together, or second, we can
“import standards from the relevant country” and determine these standards based on the
testimonies of an expert or fact witness.
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James Filpi
International Trade and Finance Law in Saudi Arabia
“International Trade and Finance Law in Saudi Arabia” was the topic of presentation by James Filpi. Mr.
Filpi started with an overview of the subject matter before delving into its constituent parts. Sources of
law in Saudi Arabia are Shari’a, royal orders and decrees, ministerial resolutions and ministerial
circulations. The judicial system is comprised of Shari’a courts, Board of Grievances and specialized
committees. The Saudi international trade and finance law covers capital markets, foreign capital
investment, regulations of foreign companies, liquidation and bankruptcy, trade law, merges and
acquisitions and dispute resolution.
Capital Markets Law was promulgated under a 2003 Royal Decree establishing the Capital Market
Authority which governs all areas of capital markets such as listing rules, securities business, corporate
governance and anti-money laundering and terrorist financing. Foreign Capital Investment Regulations
Law which established Saudi Arabian General Investment Authority (SAGIA) was promulgated under a
2000 Royal Decree. All companies must obtain a license from SAGIA and 100% foreign-owned entities
can apply for government loans and are not required to partner with local companies. The Government
however, maintains a ‘Negative List’ of activities that foreign investors cannot engage in. Oil exploration,
drilling and production, manufacturing of military equipment and explosives and some wholesale and
retail trades are included on the List. Regarding foreign capital investment, international companies that
hold SAGIA licenses are treated the same as 100 percent Saudi-owned companies when it comes to
ownership of freehold property, anti-double taxation treaties and rights to repatriate profits.
Regulations for Companies Law (promulgated by a 1965 Royal Decree) lays out a guideline for the
governance and incorporation of entities in Saudi Arabia which include limited liability companies, joint
stock companies, sole proprietorship and branch of foreign company. According to Saudi law,
liquidation is not available to insolvent entities. In a solvent company liquidation, the shareholders
appoint a liquidator to pay off debts and distribute surpluses according to company bylaws. Bankrupt
companies must apply to the Board of Grievances to declare bankruptcy. Board examines entity’s assets
and liabilities and issues an order declaring the entity bankrupt and seizes its assets. The preference is
to use amicable conciliation to dispose the entity’s assets rather than Commercial Court proceedings.
Insolvencies take an average of 1.5 years which is very fast but bankruptcies cost an average 22% of the
estate which is much higher than in other Middle Eastern countries (14%). Saudi Recovery rate (cents
on the dollar) is higher than other parts of the Middle East but much lower than in the West. In terms of
trade law, Saudi Arabia has joined many international treaties such the WTO (World Trade
Organization), the Universal Copyright Convention and the Unified GCC (Gulf Cooperation Council)
Customs Law but implementation is subject to Shari’a law. The 1993 Arbitration Law plays an important
role in dispute resolution especially within the Arab League and GCC. Outside these areas, the Board of
Grievances has jurisdiction to decide enforcement of foreign judgments. Also, a decision rendered by the
New York Convention on Foreign Arbitral Awards, to which Saudi Arabia is a party, will not be relitigated.
Mr. Filpi concluded his presentation by mentioning some imperfections in the practice of trade and
finance law and predicted that there will be more convergence between Saudi and international law in
this area in the future.
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Robert Eisen
Strategies for Jewish-Muslim Reconciliation: Reflections by an American
Jewish Academic
Robert Eisen’s presentation titled “Strategies for Jewish-Muslim Reconciliation: Reflections by an
American Jewish Academic” discusses the use of dialogue to create understanding between
Muslims and Jews in working towards peace and friendly coexistence and the steps needed to
create peace amongst the peoples of both groups.
Eisen first examines his personal view on the Israeli-Palestinian conflict and its importance to the
conflict between Muslims and Jews. He believes there should be two states that coexist side by side
at the established 1967 border, but Jews and Muslims have remained ignorant of each other, and
therefore this becomes the main factor the idea of side by side states have not been successful. The
root of ignorance stems out of common beliefs Muslims and Jews have about one another. They
believe the other group is violent, hateful of other religions, and wants world domination. This
creates fears in both groups towards the other side when all each side wants is peace. The first step
towards peace is educating both sides about one another: having knowledge about the other
religion shows respect for their community. The Muslims know a lot about the West, but the West
knows little about Muslims which upsets the Muslims, and Jews are upset with how Muslims know
so little about them. In order to become fully educated, it is crucial that members from both groups
meet physically. This creates a personal and emotional relationship. It is vital to see the world
through another’s eyes and experience the religion like its members do. However, those who try to
understand other religions can never fully do so because there will always be a gap in
understanding for an outsider of a specific religion since they do not feel a connection to the
meaning and feeling behind that specific religion. It is hard for many Muslims and Jews to see
through the eyes of other religions because they've built a superiority complex around their own
religion.
There are other issues that remain in the way of understanding each other. One is the humiliation
felt by Arabs from colonization and imperialism, and they place blame on Jews and the West,
especially when the issues deal with Israel. With Western imperialism, many Muslims feel Western
culture has been forced upon them and therefore Muslims take pride in their religion because they
have chosen to follow it instead of it being forced upon them. However, it is important for Muslims
to understand the hardships of the Jews like their loss of homeland for almost two thousand years,
the Holocaust, and that Muslims have treated them as second class citizens. Since there are only
fourteen million Jews in the world and half live in Israel, Israel is very important to them and gives
them a sense of security, and they live in constant fear of it being destroyed by surrounding Arab
peoples. They believe that Muslims don’t understand that Jews aren’t very powerful in terms of
numbers compared to the massive numbers of Muslims in the world.
Dialogue needs to be used to express the suffering and humiliation felt by both sides. However,
there are many challenges dialogue faces between the two groups. First, there is a cultural and
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physical barrier between the groups. Both groups are separated greatly geographically and there
are also great language barriers. Second, there is a strong opposition to dialogue by both sides. Each
side has become equally angry with one another and shows anger towards peacemakers that try to
spark dialogue between the two religious groups. Third, much of the effort towards peacemaking is
unsuccessful. There is a lack of publicity for peace and it isn’t as newsworthy as violence is. Finally,
peacemaking is a hard living for peacemakers. Many people who work towards achieving peace live
a life of poverty.
Eisen concludes arguing that both groups must be brought together through dialogue because with
understanding and acceptance, there is a possibility of peace and friendship between both groups.
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Pim Valkenberg
Interfaith Dialogue: Some Major Developments in Catholic Teaching
Dr. Pim Valkenberg’s presentation titled, Interfaith Dialogue: Some Major Developments in Catholic
Teaching, focuses on interfaith dialogue specifically in the practices of the Catholic Church. He uses
analyses of the documents Nostra Aetate, Lumen Gentium, Ad Gentes, and documents from the
Pontificial Council for Interreligious Dialogue to emphasize the importance in using mission and
dialogue in collaboration for interfaith dialogue success.
The first document addressed is Nostra Aetate, a document written during the second Vatican
council and its discussion of the relationship between Christians and non-Christians. More
importantly, this is the first document to examine this relationship and it constructs the concept
named the “People of God” in which peoples of Christian sects recognize and are aware of other
religions that believe in God. A document Lumen Gentium also articulates the concept of the “People
of God” and states that God will show salvation to all peoples who belong to the “People of God”, not
just those of Christian religions. Particularly in Lumen Gentium 16, the document notes that God still
continues to have a strong relationship with Jews since Christ was born from the Jewish peoples. It
then continues to discuss that Muslims also belong to the “People of God” since they are
monotheistic and believe in Abraham. Furthermore it notes that both Hindu and Buddhist religions
also reside in the “People of God” due to their belief in a higher power, and because the people of
these religions value truth and goodness. However, Nostra Aetate varies slightly from Lumen
Gentium considering it focuses on what believers of religions have in common and specific religions.
Commonalities can be observed in the questions humankind ask: What is man? What is our
purpose? Morally, what is wrong and right? Why do we have suffering? What happens after we die?
and most importantly, the question of our origin. Each religion answers these questions in their
own unique way and this is where many similarities cross and many differences occur. These
answers are the core of truth and morals that exist in each religion.
Nostra Aetate points out that the Catholic Church does not in fact disregard other religions, but can
understand them through dialogue and communication. Interreligiously, this will allow realization,
preservation, and encouragement of good morals and ethics that are spiritually present across
religions and cultures. Through the understanding of commonalities the Catholic Church shares
with other religions, inclusivism is created.
Since Christians rely heavily on the Gospel and preaching its word, dialogue should not stand alone,
and instead should coexist with mission. In the Pontificial Council for Interreligious Dialogue,
documents created during the second Vatican council, the idea of dialogue and the idea of mission
and the importance of them being paired together in creating interreligious understanding is
discussed. Mission is defined as “a unified and complex reality” that has five different forms:
“simple presence”, social development (action) of mankind, a life of prayer and meditation, physical
dialogue for truth and unity amongst peoples, and Gospel. The documents from the Pontificial
Council for Interreligious Dialogue, go on to outline the four forms of dialogue: the “dialogue of life”,
an open dialogue amongst close neighboring peoples, the “dialogue of action”, which works towards
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the development and liberation of the people, the “dialogue of theological exchange”, where
members of different religions deepen their understanding of other religions’ spiritual beliefs and
values, and finally the “dialogue of religious experience” in which peoples of certain religions share
personal spiritual rewards and their means to finding God.
Valkenberg notes three important points about these documents from the Pontifical Council for
Interreligious Dialogue on mission and dialogue. First, the term “forms” needs to be used instead of
“levels” when discussing the forms of dialogue and missions so that there is no confusion that one
religion is superior to another. Second, one can distinguish forms, but cannot separate them since
dialogue is always connected to other forms of dialogue. Lastly, “dialogue of theological exchange”
must remain third on the order of dialogue forms because one needs presence and familiarity with
a specific culture, and action must take place in the mission before preaching (theological
exchange) can occur. In order for a dialogue to be successful, it is important to live together, and to
share culture, experiences and problems.
Dr. Pim Valkenberg concludes his analysis of interfaith dialogue with examples of the Christian
Church understanding and utilizing the theory of dialogue. One example is that of the Building
Bridges Seminar, a conference between Christians and Muslims whom study texts together and talk
together under one God. He places an emphasis on the importance of “dialogue of religious
experience” arguing that Catholics should be present at Muslim prayers and vice versa because it
shows the “heart of our dialogue” and if dialogue isn’t prompted by our life of prayer, then the
dialogue has no longer meaning since it is disconnected from our faith.
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Fahad Alhomoudi
King Abdullah’s Interfaith Dialogue Initiatives: Traditional Perspective
Catholics began their revolution of interreligious dialogue with non-Christian during the years of
Vatican II (1962–65), while the turning point for contemporary conservative Sunni Muslims in
Saudi Arabia to enter into dialogue with non-Muslims began with King Abdullah’s Interfaith
Dialogue Initiative, which has strong foundation in the main sources of Islamic law, namely, the
Quran and the Prophetic tradition.
Based on the traditional writings about Prophet Muhammad and his early successors, this
presentation explores the relationship between Muslims and Christians with focus on the Muslim
dialogue with non-Muslims. Then it discusses the contemporary KAIDI and the response to this
initiative by Muslim religious and political leaders.
In a complex monarchic/theocratic/Islamic state such as Saudi Arabia, KAIDI has made a
step in the right direction in building religious harmony. However, due to the intertwining between
religious and political issues, some religious figures end up dabbling in politics and politicians in
religion without appropriate training or experience. Unlike the democratic regimes where the line
between state and religion is clearer, more diligent planning and meticulous work are needed to
design an effective way to amplify interfaith dialogue at the grassroots level within a state that is
monarchic/theocratic/Islamic. Religious leaders must be convinced that dialogue will have no
harmful influence on religious practice or religious positions, and politicians must be assured that
religious power will not overrun their domain.
Building on the existing King Abdullah initiatives, Dr. Fahad Alhomoudi concludes that
Saudi dialogue must take two parallel paths, one for religious leaders to discuss religious matters
without the interests and power plays often involved in politics, and another for politicians to focus
on legal and diplomatic relations. By empowering religious and political leaders in their unique
roles, we can both further King Abdullah’s quest for common values and respect for differences, and
foster pluralism both inside Saudi Arabia and around the world.
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Shireen Hunter
Islamic Ethics vs. Western Ethics: Black and White or Shades of Grey?
Under the heading of comparative ethics, Professor Hunter presented an overview of Islamic ethics
and its development throughout history by discussing different schools of Islamic jurisprudence
and thought and by summarizing the teachings of a number of Islamic thinkers. To provide a
comparative context, Professor Hunter contrasted Islamic ethics and practices with those of the
West whenever appropriate.
In an attempt to balance the extremist, fundamentalist or jihadist images of Islam that have
dominated the discourse in the West, especially since the September 2001 attacks, Professor
Hunter discussed moderate and reformist trends in Islamic thought and how they have become a
force in the last three decades or so. The proponents of moderate Islam advocate non-violence and
a less rigid interpretation of some Islamic laws notably those pertaining to family law, gender rights
and the penal code. They also reject confrontation with other faiths and cultures and promote
dialogue and peaceful co-existence. Reformist Muslim thinkers are even more ambitious. Beyond
just a more rapid process of reform, reformists want to reconcile faith with reason and to mediate
between Islam and modernity. They advocate new readings of Islamic scriptural and legal sources
in order to demonstrate that Islam is compatible with modern notions of human rights, democracy
and tolerance.
In comparing Islamic and Western ethics, Professor Hunter emphasized the point that the main
differences today are in the area of personal behavior and life style such as sexual preference, premarital sex, the way people dress in public and the like. She added that these issues are not peculiar
to Muslim societies because they were also very controversial in the West until relatively recently.
The difference is that there have been rapid changes on attitudes towards homosexuality and gay
marriage in the West in the last thirty or forty years while there has been very little, if any, change
in the Islamic world. So, the main question becomes the speed and process of change rather than a
fundamental ethical divergence between the two societies.
Professor Hunter concluded her remarks by emphasizing the role of culture and geography in the
ethical practices of the Islamic world and cautioning against attributing all of these to Islam and
Islamic teachings as such.
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Peter Phan
Religious Diversity and Religious Pluarlism
“Religious Diversity and Religious Pluralism” was the title of Professor Phan’s presentation. He started
his lecture by differentiating religious diversity (a cultural and sociological fact) from religious pluralism
(a theological problem brought about by different, and at times rival, claims to truth), and then
proceeded to discuss theological issues and theologies of religious pluralism. He then offered a critique
of these theologies and concluded his remarks by answering why we need interreligious dialogue.
Questions of truth and truth claims are the main theological issues of religious pluralism. They are: A)
affirmation that there are truths given by God in divine revelation; B) that these revealed truths are
mediated by human agents: a people (Judaism), a person such as the Buddha or Jesus, or a book (the
Qur’an); and C) why there are many and diverse religions? Professor Phan offered some possible
answers to this question. Maybe human depravity corrupts the unity of revealed truths. Or, perhaps God
as Absolute Mystery can be understood only partially and only in various ways. Or, it is God’s purpose to
create a “holy rivalry” among different religions.
Regarding the theologies of religious pluralism, Professor Phan identified three. 1) Exclusivism; only one
religion (my religion) is true, unique and universal. Traditional position of the Christian/Catholic Church
was that outside the church, there is no salvation (extra ecclesiam nulla salus). 2) Pluralism; all religions
are in some way true and they are different paths to the same and one Ultimate Reality, the same way
that light can be both “particle” and “wave”. 3) Inclusivism; a mediating position between the previous
two: there is only one true religion but there are elements of truth in other religions which can help their
followers to achieve salvation. But ultimately, these religions lead to and are “fulfilled” in the one true
religion. The Catholic Church at Vatican II (1962-1965) adopts this position.
Despite their differences, the above three theologies share three basic presuppositions: that there is one
God; that the goal of religion is salvation; and that there must be a mediator. But it can easily be shown
that these presuppositions are not true of all religions. For example, Buddhism does not speak of God (it
neither affirms nor denies God). Or, Confucianism does not offer salvation at least in the sense of union
with God. Also, some religions like Zen Buddhism teach access to God without any mediation. It is
therefore more accurate to say that different religions propose different “aims” and each religion is the
“best” way to achieve that goal.
We can justify the need for interreligious dialogue either positively: to correct mutual
misunderstandings and to enrich and deepen one’s own understanding of one’s religion through the
teachings of other religions; or negatively: dialogue is not for conversion nor is it for attempting to build
one global religion out of the many existing ones. The ways to do such dialogue are many but they
include collaboration towards justice and peace, sharing theological insights and sharing religious
experiences such as prayer and worship. To reach the goals of interreligious dialogue, each partner
needs a “conversion” in the sense of being able to put himself in the shoes of the other side either
intellectually, morally or religiously.
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Liesl Riddle
Middle East Managerial Values
In her presentation “Middle East Managerial Values”, Professor Riddle briefly mentioned the history of
managerial values research in general. She then went over the literature on Middle East managerial
values in Western business journals which was followed by an exposition of the seminal Ralston et al.
Study.
The basic value theory states that values held by members of cultures influence the degree to which
behaviors are enacted and the degree to which these behaviors are viewed as legitimate, acceptable and
effective. The values and international management literature includes a whole host of studies covering
values and cross-national differences in business environment and activities; values and cross-national
managerial differences; linkage between cultural values and marketing issues; and others. One of the
most cited and replicated studies on the relationship between culture and the workplace is Geert
Hofstede’s 1967-73 work which covered 40 countries and 100,000 individuals. The Hofstede Study
measured several factors: individualism vs. collectivism; power distance and uncertainty avoidance.
Under individualism, among other things, individual interests prevail and identity is based on individual.
Under collectivism, group interests prevail and identity is based on social network. The United States
had a 91 score out of 100 for being individualistic, while the Arab world scored 38. Regarding power
distance, a large number meant centralization of power and an unequal hierarchy. A small number
meant minimal inequalities and decentralization of power. Here, the U.S. scored 40 while the Arab world
scored 80. For uncertainty avoidance, a low number means comfortable in ambiguity and risk and
tolerance of deviance and innovation while a high number means fear of ambiguity and risk and
suppression of deviance and resistance to innovation. Under this measure, the U.S. scored 46 and the
Arab world, 68.
Traditionally, the Middle East has been characterized as a homogenous cultural region and it remains
understudied in the vast international business literature concerning values. The Ralston et al. Study
was a major step towards remedying these shortcomings. It was a self-administered survey of 989
managers and professionals working for local companies in seven countries: Algeria, Egypt, Israel,
Lebanon, Pakistan, Turkey and United Arab Emirates (UAE). One important finding was that value
homogeneity does not exist and there are differences across and within countries. For example, there
are similarities in collectivism throughout the region but UAE is much more individualistic than Algeria
and Egypt. There are also stark generational differences within each country and across countries
(cross-vergence). Individualism generational differences are particularly strong in UAE, Egypt and
Algeria. Some of the implications of the Ralston Study are: regional differences prevent a “one-size-fitsall” approach; popular “How to Do Business” guides reflect the practice of only a segment of the
managerial class; and that there are challenges to bridge the generational gap in managerial values.
Professor Riddle ended her talk by suggesting additional studies to link value profiles to managerial
behaviors. For example, to see if individualism among youth is a life stage or a cohort effect; or, to
identify coping strategies used to bridge generation gaps, among other studies.
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Robert Weiner
Focus on Petroleum
In his presentation “Focus on Petroleum”, Professor Weiner traced the history of oil discovery and
production in the Middle East and the geopolitical importance of its oil reserves to the West. He
then discussed the major challenges to the economic development of the Middle East/North Africa
(MENA) region drawing on the extensive ‘resource curse’ literature. Professor Weiner also covered
the issue of oil prices and how demand for natural resources in general and oil in particular can
lead to conflict. He concluded his remarks by looking at demand and supply for MENA oil in the
future.
According to charts in Professor Weiner’s presentation, 56% of world oil reserves are in the Middle
East which outranks other regions of the world by a large margin. The second richest region, North
America, holds only 16% of the world reserves. Additionally, of the 8 countries that account for
over 75% of world reserves, 5 are in the Middle East: Saudi Arabia, Iran, Iraq, Kuwait and United
Arab Emirates. Despite their oil wealth, MENA countries face major challenges and barriers in
developing their economies and raising their standards of living. Corruption and nepotism; bloated
public sectors; poor quality of education; conflicts and political instability and rentier state
economies are some of the reasons mentioned by Professor Weiner. This phenomenon of lack of
development in spite of being rich in resource has been named ‘resource curse’ in economic
development literature. There is ample statistical evidence that show natural resource exporting
countries have lower growth rates than countries with much less natural resources; that they spend
less on education; and that their high school students score lower on international math tests. This
is mostly due to the fact that oil money is a windfall to the state which allows it to become
independent of the people and make it easier to buy-off some dissenters and repress others and
also neglect other sectors of the economy. The result, in most cases, is rent-seeking behavior
(drawing income from resources and assets as opposed to production of goods and services),
corruption and more bureaucracy.
Professor Weiner emphasized the volatility and forecasting problems of oil prices but he said that
long-term studies suggest an $80-$90/bbl price over the next 5 years. He also discussed how
revenue volatility and rent-seeking by different forces within the society can lead to conflicts, local
and international. Going over the supply and demand of oil in the coming decades, Professor
Weiner showed how economic growth especially in non-OECD countries such as China and India
drives demand and how these countries are much more dependent on MENA oil than the United
States.
In conclusion, Professor Weiner suggested some strategies for oil exporting countries to remove or
at least minimize the effects of the ‘resource curse’. Political reform, privatization, transparency in
disposal of oil income, regulatory reform and independence of courts will go a long way to improve
the situation in these countries.
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Michael Bennett
Islamic Finance and the Growth of Islamic Capital Markets
Michael Bennett made a very illuminating presentation entitled “Islamic Finance and the Growth of
Islamic Capital Markets”. Mr. Bennett started with the growth of Islamic finance in terms of total assets,
breakdown of assets and their regional distribution and then covered different bank financing modes in
Islam which are ‘Murabaha’, ‘Ijara’ and ‘Mudharaba’. Islamic capital markets, equities, and mutual funds
were discussed next and were followed by an exposition of ‘Sukuk’ which are also known as Islamic
bonds. Mr. Bennett concluded his presentation by a discussion of what is needed for future growth of
Islamic finance.
According to the speaker, many religions including Judaism and Christianity have prescriptions related
to economics and finance but only Islam has a complete financial system based on religious principles.
These include fairness, sharing of risks, prohibition of interest and discouragement of speculation and
are based on Shari’a law and Sunnah (historical practice and interpretation). Islamic finance has grown
rapidly in the last two decades and now totals over $1 trillion in assets. The largest part of these assets
(more than 83%) is in Islamic banking. Also, almost 80% are concentrated in the Middle Eastern and
North African countries. However, the relative size of Islamic finance as compared with assets of the
international finance is still very small: about 1/200 of the total. Even in Islamic countries, with the
exception of Iran, the conventional banking assets outweigh the Islamic assets by a large margin.
‘Murabaha’ is like a conventional loan with the difference that the bank buys the asset and then sells it to
the customer for a deferred payment. In ‘Ijara’, the bank buys the asset and then leases it to the
customer with an obligation that the customer buys the asset at the end of the lease term. In
‘Mudharabah’, bank and customer enter into a contract where customer agrees to invest the money
received from the bank into a designated business and to provide the bank with a participation fee. By
far, the most common mode is ‘Murabaha’ constituting between 60% and 99% of all bank financings
depending on the country.
Islamic capital markets are relatively under-developed and most governments and sovereign wealth
funds borrow primarily in conventional form. Equity investment is Shari’a compliant as long as
company’s business is consistent with Islamic principles, e.g. no dealings in alcohol, pork or gambling.
Mutual funds are also allowed with some modifications. ‘Sukuk’ are tradable fixed income instruments
which represent rights to receive payments from a trade transaction, a pool of assets or a business
venture, hence the name “Islamic Bonds”. Global ‘Sukuk’ issuance has grown from about $5 billion in
2005 to about $80 billion in 2011 with over 70% of the total being issued in Malaysia.
Mr. Bennett then suggested strategies for future growth of Islamic finance. More Shari’a scholars with
financial expertise are needed as only 15 to 20 scholars are making most of the decisions today. There
should also be regulatory parity with conventional financial instruments and greater legal certainty
when there is conflict between Shari’a law and governing laws of Western countries. Greater
standardization is also needed as there is a lack of uniform interpretation. A product that may be
acceptable in Malaysia may not be acceptable in Saudi Arabia. Finally, less complex structures will lead
to more growth as they are more liquid, easier to value and less difficult to unwind.
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Edward Burton
Saudi Arabia’s Economy
Mr. Burton started his presentation, “Saudi Arabia’s Economy”, with facts and figures about the subject
matter and also the country’s efforts to diversify its economy. He then discussed the U.S. – Saudi partnership
before a long and detailed exposition of Saudi Arabia’s economic sectors: Oil and Gas; Petrochemicals;
Financial Services; Construction; Healthcare; Power Generation; Water; Mining; Transportation; IT;
Agriculture and Food; and Education. He concluded by mentioning some of the tangible results of efforts of
the U.S. – Saudi Arabian Business Council to forge partnerships between entities of the two countries.
Saudi Arabian gross domestic product (GDP) in 2011 was $577 billion. The country had almost $635 billion in
foreign assets and a per capita disposable income of $20,651. Its economy represents 25% of Arab GDP and is
the largest in the Middle East-North Africa (MENA) region. The country has made several initiatives to
diversify its economy away from oil. Alternative energy, ‘Economic Cities Project’ and ‘National Industrial
Clusters Development Program’ are examples of such initiatives. A huge investment in education at all levels
and a move towards a knowledge-based society is another prime example of such diversification efforts.
United States is Saudi Arabia’s top trading partner with $63.1 billion in bilateral trade in 2011 and a growth
rate of more than 40% per year.
Regarding Saudi Arabian economic sectors, here is a sampling of latest activities: $130 billion in energy
projects for the 2011-15period; $150 billion investment to diversify the petrochemical sector by developing
120 new products; Saudi Arabia has the largest stock market in the MENA with a capitalization of $348
billion; with $1.1 trillion worth of construction projects planned and under development, the country has the
largest construction market in the region; Saudi Arabia spent $20 billion on healthcare in 2011 and another
$8.6 billion worth of projects are forthcoming; over $100 billion are currently being spent on power
generation projects and annual power demand is increasing by between 7 and 8 percent; it is the largest
country in the world without running surface water and it is the largest producer of desalinated water on the
globe; Saudi Arabia aims to turn mining into the third pillar of its economy based on its deposits of phosphate,
bauxite, gold, copper and zinc; it also aims to be a world’s leading transportation and logistics hub by 2020 by
spending $100 billion on ports, airports, rails, roads and logistical centers; its $13 billion information
technology (IT) market is projected to reach $17 billion by 2016; the food sector is expanding by an annual
rate of 18.5% and $17 billion worth of food and agricultural products were imported in 2010.
Education is in a class by itself, accounting for 25% of the country’s budget since 2006. Under a 25-year
strategic plan, the country is investing heavily in education. The recently opened $10 billion King Abdullah
University of Science and Technology (KAUST) is a good example. Also, under the King Abdullah Scholarship
Abroad program, over 100,000 Saudi students study in foreign countries with about half of them choosing the
United States. Top academic fields are math, computer science, engineering, medical, business and
management. Most Saudi universities have formed partnerships with their U.S. counterparts in all sorts of
academic fields. They have also established partnerships with American companies mostly in IT, petroleum
and chemicals, aircraft manufacturing and precision engineering.
Mr. Burton ended his remarks by citing some examples of recent American-Saudi business partnerships.
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