Al Jazeera's Rosiland Jordan said the most remarkable part of Kushner's opening presentation was the complete lack of any mention of the Israeli occupation.
Saudi Arabia, which sent its finance minister, in a statement said it supported "all global efforts aiming to achieve prosperity in the region".
"The city is not only important for the parties of the conflict, but also for believers in the three Abrahamic religions, due to its unique religious characteristics, its ancient identity, and its great political symbolism", the monarch said in the letter submitted in January 2018.
"Such inciting campaigns aim at making the people and leadership of Palestine accept the dictations, threats and tyranny of both the U.S. and Israel - and they are doomed to fail", the veteran Palestinian negotiator said in a statement earlier Tuesday.
"CMEP believes a political solution that grants the Palestinian people their full freedom and right to self-determination is a necessary prerequisite to economic prosperity".
In Kuwait, which has the most freewheeling political system in the Gulf, several members of parliament called on officials to boycott the workshop and any attempt to normalize relations with Israel. He added, "It will be somewhere between the Arab Peace Initiative and between the Israeli position".
The potential of the Palestinian people lies in their ability to live in a sovereign and free Palestine, said Saeb Erekat, secretary general of the Executive Committee of the Palestine Liberation Organization (PLO), on the Manama economic workshop and the United States economic plan for the region.
It is not clear whether the Trump team plans to abandon the "two-state solution", which involves creation of an independent Palestinian state living side by side with Israel.
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"The US makes no positive contribution to the solution of the Palestinian issue. If they are going to deprive programs of funding, they can not get away with repackaging them into a brochure and claiming victory", Soifer said.
Kushner's pitch reflected the criticism that Palestinian leaders and others have directed his way in recent days, arguing that an economic plan is not worth discussing without first addressing the political issues at the core of the conflict. In Gaza, stores, public offices and universities shut down after Hamas launched a strike.
"The workshop is being held in Bahrain, home of the US Navy's Fifth Fleet, at a time of heightened tension between Tehran and Washington and its Gulf allies".
Palestinian leaders, who have refused to engage with the Trump administration accusing it of being the most biased towards Israel in USA history, have also been scathing about its prospects of success.
Also in attendance were business people from around the world, including Israelis and Palestinians, although neither side has any official representation.
Trump has already taken landmark steps to support Israel including recognising bitterly contested Jerusalem as Israel s capital, and Kushner is a family friend of Netanyahu.
"The politicians will not bring us anywhere", said conference attendee Shlomi Fogel, an Israeli shipping, finance and real estate entrepreneur.
The Palestinians, the official added, "Will continue to consider the U.S. and Israel as our enemy".