By Andrew Walker BBC economics correspondent in Jordan

But the economic business continues.

The big theme has been a proposal recently floated by President Bush, for a free trade area encompassing the United States and the Middle East.

Two key US officials have been trying to sell the idea here - the Secretary of State Colin Powell and the Trade Representative Robert Zoellick.

Israeli and Arab politicians shared a platform

In a speech Mr Zoellick described the trade agenda as a "fundamental part of the President's broader Middle East initiative".

He said the US goal is to "assist nations that are ready to embrace economic liberty and the rule of law, integrate into the global trading system and bring their economies into the modern era".

And there is no question that the economic performance of the Middle East has been disappointing.

A recent report prepared by the World Economic Forum said that while investment rates in the region have been among the world's highest, growth rates have been among the lowest.

Many businesspeople complain that commerce is complicated by corruption and interventionist governments.

Enthusiastic meeting

Peter Brabeck, Vice Chairman and Chief Executive of the Swiss food and drink group Nestle, says that what he called malpractices are hindering foreign investment.

"There's no doubt about it", he said, "this is not an easy region [in which] to make a direct investment".

That is the context for the US trade initiative.

Mr Zoellick and Mr Powell had a meeting, chaired by the host of this conference, King Abdullah of Jordan, with ministers from around the Arab world.

Mr Powell said he was impressed by the level of enthusiasm shown for the US proposal.

The US already has a deal with Jordan. Mr Zoellick says that Jordanian exports have increased nearly 13-fold as a consequence, since the agreement was signed in 2000.

One of the those Arab officials at the meeting, the Egyptian Finance Minister Medhat Hassanein, said afterwards in a BBC interview that a Middle East and US free trade area, even one including Israel, is a eventually a possibility, but only if there is first what he called a just peace in the region.

It would be an extraordinary change. Egypt does recognise Israel. But most Arab states do not.

There are certainly plenty of businesspeople at this conference from around the region who would relish more economic integration.

Intifada and occupation

But they too need to see an improvement in the security situation.

Take Stef Wertheimer, an Israeli businessman who has established a number of industrial parks.

He wanted to set up a new one in the Gaza Strip.

He was, he says, very close, but then came the intifada in September 2000.

Now, there is no question of him investing in the area, not until the security situation improves. Instead he has turned his attention to developing an industrial park in Jordan.

Munib Masri, Chairman of the Palestine Development & Investment Company, agrees that peace is what's needed for business to thrive - an end to what he calls the Israeli occupation.

In a BBC discussion he and Stef Wertheimer had no difficulty agreeing that peace and stability are what the economy needs.

Conflicting

Mr Masri says he wishes there were more Israelis like Mr Wertheimer. Indeed he joked that Wertheimer should be Israeli prime minister.

The two of them have not done business together. But it seemed very clear they could easily do so if the right opportunity arose.

But when the discussion veers towards who to blame for the present security situation, the consensus evaporates faster than the Dead Sea amid two conflicting interpretations of recent history.

Those issues have an uncomfortable habit of intruding into many other areas in this troubled region.