Saudi Arabia has decided not to host its major international investment gathering in person next week due to heightened security concerns following missile strikes by Iran-backed Houthi rebels, as reported.
The Future Investment Initiative, which is set to commence on October 26 in Riyadh, might either be delayed or switched entirely to an online format, according to sources including the Wall Street Journal.
Plans for an in-person event were abandoned on Monday, with a final decision regarding potential postponement expected by Tuesday, the report noted.
Even before the announcement of the change, bankers from JPMorgan Chase and Citigroup were already canceling meetings amid security anxieties. Discussions were taking place among the teams of CEOs Jamie Dimon and Jane Fraser about whether they should attend.
This disruption presents another challenge for Crown Prince Mohammed bin Salman in his efforts to attract foreign investment, especially as the ongoing conflict with the Houthis further strains Saudi Arabia’s finances.
Security concerns deepened after a Houthi assault on Riyadh’s international airport earlier this month resulted in the deaths of at least 13 individuals and left hundreds injured, according to the Journal.
Moreover, Saudi authorities reported that another projectile hit the southern city of Najran on Sunday, resulting in six injuries.
Executives from Wall Street have been consulting with security experts about the risks of traveling to the kingdom, fearing that major hotels and landmarks could be targeted.
Some financial professionals expressed apprehension that missing the conference could jeopardize their relationships with Saudi officials and business partners, the Journal added.
Since its inception in 2017, the conference has become a key venue for announcing multi-billion dollar transactions.
Last year’s event reportedly attracted over 9,000 delegates and led to more than $50 billion in agreements, pledges, and projected deals, though these figures do not necessarily translate into completed investments.
Despite significant investments in Crown Prince bin Salman’s Vision 2030 economic initiative, Saudi Arabia has struggled to achieve its foreign investment targets.
According to reports, foreign direct investment reached around $33 billion last year, which falls short of the kingdom’s aspiration to attract approximately $100 billion annually by 2030.
The conference previously faced substantial backlash in 2018 when high-profile financiers and government officials withdrew following the murder of Washington Post columnist Jamal Khashoggi in the Saudi consulate in Istanbul.
Nevertheless, many Western business leaders returned the following year as Saudi Arabia worked to rebuild its international ties.
Recent attacks have also affected other prominent Saudi events, including Riyadh Fashion Week, the Six Kings Slam tennis tournament, and the PIF Saudi International golf tournament.
A planned summit between European Union and Gulf Arab leaders has also been postponed.
Efforts to reach FII organizers and the Saudi Public Investment Fund for comment have been made.
