Saudi hosts ‘Davos in desert’

Dozens of global policymakers and tycoons will attend a Saudi investment summit starting Tuesday, helping the kingdom turn the page on a critic’s murder that triggered a mass boycott last year.

A strong turnout at the three-day Future Investment Initiative (FII), nicknamed “Davos in the desert”, would further rehabilitate de facto ruler Crown Prince Mohammed bin Salman’s image, a year on from the killing of journalist Jamal Khashoggi.

The Washington Post columnist’s murder last October at Saudi Arabia’s Istanbul consulate triggered one of the top crude exporter’s worst crises and prompted a wave of business and political leaders to pull out of the glitzy annual conference at the last minute.

But the event, aimed at projecting the insular kingdom as a dynamic investment destination, is set for a reboot this year as global outrage dissipates.

Leading the high-profile attendees are Indian Prime Minister Narendra Modi and Brazil’s President Jair Bolsonaro, guests of honour who are set to address the conference, a Western official told the news agency.

US Treasury Secretary Steven Mnuchin will also lead a high-powered American delegation including Jared Kushner, President Donald Trump’s senior advisor and son-in-law.

“This is the biggest event on the annual business calendar in Saudi Arabia,” said Steffen Hertog, an associate professor at the London School of Economics.

“International businesses have moved on from Khashoggi.”

Blue-chip firms such as Goldman Sachs, JPMorgan Chase and Citigroup are also set to send top executives to this year’s event, according to US media.

“Global companies operating in Saudi Arabia today often want to operate under the radar or avoid talking about their business there,” asset manager BlackRock’s chief executive Larry Fink, who withdrew from last year’s FII, wrote on LinkedIn to justify his return this year.

“I believe just the opposite. Corporate leaders should be having a public dialogue about it. Not because everything in Saudi Arabia is perfect — but precisely because everything is not.”

Global banks and consultants are vying for business around the hotly anticipated initial public offering of state oil giant Aramco, the world’s most profitable company.

The kingdom plans to list as much as five percent of Aramco, which analysts say could be worth between $1.5 trillion and $2 trillion.

“Last year, some international businesses thought it was better to avoid sending top level representation as it was so close in the aftermath of the Khashoggi affair,” said Ghanem Nuseibeh, founder of London-based consultancy Cornerstone Global Associates, who has vigorously defended the kingdom’s stand on the killing.

“This year... the optics are no longer seen as a reason to boycott such an important event. Global businesses want to do business in Saudi and Saudi is inviting (them) with open arms.”

But the organisers are not inviting media scrutiny. The FII website has not listed its speakers, saying only that it will “bring together decision makers, leading investors and global experts”.

The CIA has reportedly concluded that the crown prince, who controls all major levers of power in the Saudi government, likely ordered the gruesome killing.

 

Saudi hosts Davos in desert

Dozens of global policymakers and tycoons will attend a Saudi investment summit starting Tuesday, helping the kingdom turn the page on a critics murder that triggered a mass boycott last year. A strong turnout at the three-day Future Investment Initiative (FII), nicknamed Davos in the desert, would further rehabilitate de facto ruler Crown Prince Mohammed bin Salmans image, a year on from the killing of journalist Jamal Khashoggi. The Washington Post columnists murder last October at Saudi Arabias Istanbul consulate triggered one of the top crude exporters worst crises and prompted a wave of business and political leaders to pull out of the glitzy annual conference at the last minute. But the event, aimed at projecting the insular kingdom as a dynamic investment destination, is set for a reboot this year as global outrage dissipates. Leading the high-profile attendees are Indian Prime Minister Narendra Modi and Brazils President Jair Bolsonaro, guests of honour who are set to address the conference, a Western official told the news agency. US Treasury Secretary Steven Mnuchin will also lead a high-powered American delegation including Jared Kushner, President Donald Trumps senior advisor and son-in-law. This is the biggest event on the annual business calendar in Saudi Arabia, said Steffen Hertog, an associate professor at the London School of Economics. International businesses have moved on from Khashoggi. Blue-chip firms such as Goldman Sachs, JPMorgan Chase and Citigroup are also set to send top executives to this years event, according to US media. Global companies operating in Saudi Arabia today often want to operate under the radar or avoid talking about their business there, asset manager BlackRocks chief executive Larry Fink, who withdrew from last years FII, wrote on LinkedIn to justify his return this year. I believe just the opposite. Corporate leaders should be having a public dialogue about it. Not because everything in Saudi Arabia is perfect but precisely because everything is not. Global banks and consultants are vying for business around the hotly anticipated initial public offering of state oil giant Aramco, the worlds most profitable company. The kingdom plans to list as much as five percent of Aramco, which analysts say could be worth between $1.5 trillion and $2 trillion. Last year, some international businesses thought it was better to avoid sending top level representation as it was so close in the aftermath of the Khashoggi affair, said Ghanem Nuseibeh, founder of London-based consultancy Cornerstone Global Associates, who has vigorously defended the kingdoms stand on the killing. This year... the optics are no longer seen as a reason to boycott such an important event. Global businesses want to do business in Saudi and Saudi is inviting (them) with open arms. But the organisers are not inviting media scrutiny. The FII website has not listed its speakers, saying only that it will bring together decision makers, leading investors and global experts. The CIA has reportedly concluded that the crown prince, who controls all major levers of power in the Saudi government, likely ordered the gruesome killing.