“What has reportedly happened in Turkey around the disappearance of journalist Jamal Khashoggi, if proved true, would clearly change the ability of any of us in the West to do business with the Saudi Government.” – Branson
Intended to showcase the kingdom’s long-term plans, the event is being boycotted over Riyadh’s reported role in the disappearance of Jamal Khashoggi
From Asia Times
More business leaders have pulled out of Saudi Arabia’s flagship investment conference in protest at the reported killing of Jamal Khashoggi, dealing a further blow to a high-profile event tagged as Davos in the Desert.
JPMorgan Chase & Company chief executive officer Jamie Dimon and Ford Motor Company chairman Bill Ford said Monday they would not be going, joining a list that also includes Viacom CEO Bob Bakish, HP executive Joanna Popper and Android’s creator Andy Rubin.
The Future Investment Initiative was supposed to showcase Prince Mohammed bin Salman’s modernization plans for Saudi Arabia, but instead has highlighted its dubious human rights record since the disappearance of Khashoggi, one of the kingdom’s most vocal critics.
A prominent Saudi journalist living in Turkey, Khashoggi has not been seen since he entered the Saudi consulate in Istanbul on October 2. Turkey says it has proof that he was murdered and dismembered.
Daily Sabah, a Turkish newspaper close to the government, has published the names of 15 Saudis who it says entered Turkey that day and flew out following the attack; it also screened surveillance footage. Saudi Arabia insists that Khashoggi left the consulate unharmed but has not allowed Turkish investigators to enter the building.
President Donald Trump, who has pegged his Middle East strategy around Saudi Arabia — and specifically Crown Prince Mohammed bin Salman — has said the incident is being investigated, but ruled out halting his country’s multi-billion dollar arms deals with Riyadh.
Treasury Secretary Steven Mnuchin said in Bali on Saturday he would still attend the conference, which its hosted on October 23-25 by the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, under the theme “A blueprint for the twenty-second century.”
But corporate executives are voting with their feet. Some, like Uber CEO Dara Khosrowshahi, will not attend unless Riyadh responds to demands for clarification on Khashoggi’s fate.
“We are following the situation closely, and unless a substantially different set of fact emerges, I won’t be attending the FII conference in Riyadh,” he said.
American media groups Bloomberg, the New York Times and CNN have also withdrawn their participation, and the London-based Financial Times will no longer partner the event. Los Angeles Times owner Patrick Soon-Shiong confirmed he has also withdrawn.
Sir Richard Branson, who attended the inaugural conference last October and had wanted the fund to invest in two of his space ventures, last week suspended Virgin’s business dealings with the kingdom. These include involvement in two Red Sea tourism projects.
“What has reportedly happened in Turkey around the disappearance of journalist Jamal Khashoggi, if proved true, would clearly change the ability of any of us in the West to do business with the Saudi Government,” he said in a statement posted to Twitter.
Saudi Arabia, meanwhile, insists that the show will go on. The wealthy oil exporter has warned that it will enact harsh measures against any country that dares to implement sanctions over the Khashoggi affair.
“If the kingdom is subject to any action, it will respond with greater action. The kingdom’s economy is influential and vital in the global economy,” it said in a statement attributed to a Saudi official and published by the state news agency on Sunday.
Statement from Richard Branson
“I had high hopes for the current government in the Kingdom of Saudi Arabia and its leader Crown Prince Mohammed bin Salman and it is why I was delighted to accept two directorships in the tourism projects around the Red Sea. I felt that I could give practical development advice and also help protect the precious environment around the coastline and islands.
“What has reportedly happened in Turkey around the disappearance of journalist Jamal Khashoggi, if proved true, would clearly change the ability of any of us in the West to do business with the Saudi Government. We have asked for more information from the authorities in Saudi and to clarify their position in relation to Mr Khashoggi.
“While those investigations are ongoing and Mr Khashoggi’s whereabouts are not known, I will suspend my directorships of the two tourism projects. Virgin will also suspend its discussions with the Public Investment Fund over the proposed investment in our space companies Virgin Galactic and Virgin Orbit.”
Top CEOs Jettison Saudi Conference
From CNN
New York (CNN Business) A growing number of top business leaders are pulling out of a high-profile Saudi investment conference following the disappearance of journalist Jamal Khashoggi.
A JPMorgan Chase (JPM) spokesperson said late Sunday that the bank’s CEO, Jamie Dimon, won’t attend the conference later this month as previously planned. The spokesperson declined to comment further.
Ford (F) Executive Chairman Bill Ford is no longer attending because of “scheduling,” the company said, declining to provide further details about the change of plans. A spokeperson for MasterCard confirmed that CEO Ajay Banga had also dropped out. It was not immediately clear if the company had canceled its partnership with the event.
Blackrock (BLK) CEO Larry Fink and Stephen Schwarzman, the CEO of investment firm Blackstone, have also withdrawn, sources familiar with the situation said Monday.
Saudi Arabia invested $20 billion last year in a new Blackstone fund aimed at helping improve America’s crumbling infrastructure.
The Saudi conference, dubbed “Davos in the desert,” has become a focal point for the outcry over the unexplained disappearance of Khashoggi, a former Saudi government adviser turned critic. International executives and media sponsors, including CNN, have withdrawn from the event as concerns have mounted about Khashoggi’s fate.
Turkey claims to have evidence that Khashoggi, a US resident and columnist for the Washington Post, was murdered inside the Saudi consulate in Istanbul earlier this month — an accusation the Saudi government strenuously denies.
The Saudi business conference, officially titled the Future Investment Initiative, is part of Saudi Crown Prince Mohammed bin Salman’s efforts to modernize the country’s economy and wean it off its dependence on oil.
“Whilst it is disappointing that some speakers and partners have pulled out, we are looking forward to welcoming thousands of speakers, moderators and guests from all over the world to Riyadh from October 23 to 25,” a spokesperson for the Future Investment Initiative said.
Business backlash over Khashoggi threatens Saudi Arabia’s economic dreams
Speakers and sponsors have been abandoning the event in growing numbers since last week.
Kai-Fu Lee, a former Google (GOOGL) executive who was on the list of speakers, will no longer participate, a spokesperson for his investment fund, Sinovation Ventures, told CNN on Monday.
Other top business leaders who have pulled out of the Saudi event in the past week include Uber’s Dara Khosrowshahi. Saudi Arabia has invested billions in Uber.
Some speakers are sticking with the conference for the time being, while other companies — including Japanese tech giant SoftBank (SFTBF) — are refusing to discuss their executives’ plans.
SoftBank CEO Masayoshi Son has used Saudi Arabia’s oil riches to help him become one of the most powerful tech investors in the world. The kingdom provided nearly half the money for SoftBank’s $93 billion tech-focused Vision Fund, which has made big investments in startups such as WeWork and Slack.
SoftBank has also committed to help the Saudi crown prince in his efforts to shift the country’s oil-dependent economy into areas such as technology and renewable energy.
It’s involved in Saudi projects to build a new mega city and the world’s largest solar farm.
U.S. Treasury Secretary Steven Mnuchin still plans to attend the conference. A US Treasury spokesperson said Sunday that officials “will be evaluating the information that comes out this week” about Khashoggi’s fate.
Who’s coming, who’s not?
These are the high-profile participants who have pulled out of the Saudi conference:
- JPMorgan Chase CEO Jamie Dimon
- Ford Executive Chairman Bill Ford
- Uber CEO Dara Khosrowshahi
- Blackstone CEO Stephen Schwarzman
- Blackrock CEO Larry Fink
- MasterCard CEO Ajay Banga
- Viacom CEO Bob Bakish
- Thrive CEO Ariana Huffington
- Sinovation Ventures CEO Kai-Fu Lee
- World Bank President Jim Yong Kim
- Los Angeles Times owner Patrick Soon-Shiong
- Economist Editor-in-Chief Zanny Minton Beddoes
- New York Times columnist Andrew Ross Sorkin
These public figures are still planning to participate:
- US Treasury Secretary Steven Mnuchin
- Siemens CEO Joe Kaeser
- Credit Suisse CEO Tidjane Thiam
- IMF Managing Director Christine Lagarde
- EDF CEO Jean-Bernard Lévy
- These executives have not yet commented on whether they still plan to attend:
- SoftBank CEO Masayoshi Son
- HSBC CEO John Flint
- Glencore Chairman Tony Hayward
- London Stock Exchange CEO David Schwimmer
- Societe Generale CEO Frédéric Oudéa
- BNP Paribas Chairman Jean Lemierre
- Standard Chartered CEO William Winters
- Accor CEO Sébastien Bazin