Saudi Arabia Gets Its Timing Right For the Davos of the Desert - Bloomberg
The “Davos in the Desert,” as the annual Future Investment Initiative in Riyadh has come to be known, has often been associated with controversy and crisis. As Saudi Crown Prince Mohammed bin Salman’s showcase event for investors, this year's event may be a chance for a rebound. Investors are anxious to see clear skies and signs of recovery after a difficult 2020.
The inaugural gathering in 2017 was quickly overshadowed by what the government claimed was a crackdown on corruption, in which the venue of the event, Riyadh’s Ritz-Carlton hotel, was turned into a prison for hundreds of rich and powerful Saudis. The detentions of many prominent businesspeople inevitably had a chilling effect on foreign direct investment, which fell to a 14-year low in 2017. The following year, the event was haunted by the recent murder of journalist Jamal Khashoggi: Spooked by the international outcry, global business leaders stayed away.
The 2019 FII was scaled down (along with the size of the initial public offering of the country’s biggest company, Saudi Aramco) as the government tried to refocus efforts on concrete economic reforms. Though foreign direct investment showed a slight pick-up that year, it hasn’t accelerated. And the 2020 edition had to be postponed as the coronavirus pandemic killed off investor interest and stalled progress on major infrastructure and tourism initiatives.
MBS, as the crown prince is commonly known, will be hoping for better as the fourth FII kicks off today. For all the controversies of previous years, his own position as the kingdom’s de facto ruler is unchallenged: He wields complete political authority as well as command of the driving force behind the economy and the country's economic development model, the Public Investment Fund. If there are investment opportunities to be had in Saudi Arabia, they will go through him.
No comments:
Post a Comment