The Scoop
Saudi Arabia is set to make a final decision on whether to postpone its flagship investment conference in Riyadh as soon as Monday, after Wall Street executives privately relayed safety concerns to organizers, including the boss of the kingdom’s sovereign wealth fund, people familiar with the matter said.
Big banks and private-equity firms have privately relayed safety concerns about attending the Future Investment Initiative to Yasir Al-Rumayyan, these people said, adding that CEOs feel pressure to attend the four-day event that is scheduled to begin next week in person.
Ultimately, it’s just a “recommendation to pass on to the only guy who matters,” one person said, referring to Crown Prince Mohammed bin Salman, who will make the final decision.
PIF, which is the main backer of FII and is the majority shareholder of the firm that organizes it, is expected to make a decision on how to proceed as soon as today.
A spokesperson for FII didn’t respond to requests for comment.
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Multiple signals suggest FII could be postponed: Rooms at the Ritz Carlton in Riyadh, which is usually blocked for the event, have been available for public booking in the past 24 hours. Other scheduled events such as an exhibition tennis tournament, a charity event linked to the crown prince, and Riyadh Fashion Week have all been postponed after the Houthis escalated attacks on the kingdom.
Delaying the conference when the main gateway to the city is under attack wouldn’t be surprising, but it runs counter to Riyadh’s narrative that the metastasizing war in the region isn’t disrupting business. The kingdom, and its neighbors like the UAE and Qatar, have pitched themselves as not just sources of capital, but as a safe home for trillions in financial assets, data centers, and new industries.
Speculation has swirled in recent weeks over whether Saudi Arabia would go forward with the event, given high-profile attacks on the Riyadh airport. Organizers have held discussions around allowing overseas executives to participate virtually, Reuters reported last week, and The Wall Street Journal said that some executives are already canceling meetings.
The US, along with most other Western governments, recommends against all but essential travel to Saudi Arabia. That has knock-on effects on travel insurance costs and advice from internal security and risk teams.
Still, Saudi Arabia has viewed attendance at the event, and general support for the Gulf during turbulent times, as a loyalty test for global business leaders. Those who show up in tough times are rewarded, while fair-weather friends are often excluded from lucrative deals.
Notable
- Repeated attacks on Saudi Arabian civilian facilities have dented confidence in the kingdom’s ability to remain relatively immune to the US-Iran war, Semafor reported.