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Saudi Arabia has ruled out hosting in-person attendees for its flagship annual investment conference this year, according to a report, as Houthi missile and drone strikes continue to disrupt international travel into the kingdom.
The decision strikes a direct blow to crown prince Mohammed bin Salman’s efforts to attract foreign capital, showcase major diversification projects, and establish Riyadh as the Middle East’s premier business and financial hub.
Organisers are currently deciding whether to hold the tenth edition of the Future Investment Initiative (FII), often dubbed “Davos in the Desert,” virtually or to postpone the event altogether.
A final decision on the format is expected within days, according to people familiar with the internal discussions who spoke to the Financial Times.
The disruption follows a recent series of Houthi attacks that have targeted critical infrastructure within the kingdom.
Last week, a strike on King Khalid International Airport killed 13 people, while another conducted a day later set part of Aramco’s headquarters ablaze.
The security crisis comes amid broader regional turmoil that has elevated threats across the Persian Gulf.
The FII is one of the Gulf region’s highest-profile gatherings and typically attracts heads of state and executives from the world’s largest banks, asset managers and energy majors. It has historically served as the premier stage for Saudi Arabia to sign multi-billion-dollar deals with global corporate executives, tech founders, and Wall Street titans.
This year’s summit had been scheduled to feature speakers including JPMorgan chief executive Jamie Dimon, and BlackRock chief executive Larry Fink.
The crisis presents a broadly different challenge for the summit in comparison to its past trials. In 2018, the second edition of the event was hit by a wave of corporate boycotts following the murder of journalist Jamal Khashoggi inside the Saudi consulate in Istanbul.
Instability triggered by Iranian strikes across the region earlier this year had already bought regional growth to a sluggish pace.
But for Mohammed bin Salman, the Houthis have delivered yet another severe financial blow.
As tensions heighten, Saudi Arabia’s Public Investment Fund (PIF) shows government budget deficits have widened rapidly, and numbers of willing global investors remain stagnant.
Without an in-person FII summit, Riyadh stands to lose another opportunity to pitch international consortia and secure foreign capital.
More to follow…
