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‘Davos in the Desert’ attracts US business leaders despite political concerns: NPR


Attendees watch David Solomon, chief executive officer of Goldman Sachs & Co., on a screen as he speaks during a panel session at the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia Ut, on Tuesday, October 25, 2022.

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Attendees watch David Solomon, chief executive officer of Goldman Sachs & Co., on a screen as he speaks during a panel session at the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia Ut, on Tuesday, October 25, 2022.

Tasneem Alsultan / Bloomberg via Getty Images

Relations between the United States and Saudi Arabia are at their lowest point in decades. But that hasn’t stopped Wall Street executives and some of the world’s wealthiest investors from gathering in Riyadh for a conference nicknamed “Davos in the Desert.”

On Tuesday, Jamie Dimon and David Solomon, CEOs of JP Morgan Chase and Goldman Sachs, shared the stage with billionaires Stephen Schwarzman, of The Blackstone Group, and Ray Dalio, founder of the largest hedge fund. world.

Former President Trump’s son-in-law, Jared Kushner, also appeared at the Future Investment Initiative (FII) conference, and former Treasury Secretary Steven Mnuchin is expected to speak on Wednesday. Both Kushner and Mnuchin now run Saudi-backed private equity funds.

But no cabinet officials or senior staff from the Biden administration were there, because the White House currently re-evaluating its partnership with Saudi Arabia.

Former President Trump’s son-in-law, Jared Kushner, at the Future Investment Initiative conference in Riyadh, Saudi Arabia.

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Former President Trump’s son-in-law, Jared Kushner, at the Future Investment Initiative conference in Riyadh, Saudi Arabia.

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“This is definitely one of the low points in US-Saudi relations,” said Karen Young, a senior research scholar at Columbia University’s Center for Global Energy Policy.

Biden’s frustration over Saudi oil production cuts

President Biden, who raised concerns about the country’s human rights record, was upset Crown Prince Mohammed bin Salman pushes for deep oil production cuts earlier this month, which led to higher energy prices.

At the same time, Saudi Arabia has a government investment fund of $600 billion, and the country is launching ambitions beyond the traditional energy sector.

There are seminars at the conference on artificial intelligence, cryptocurrency, travel and hospitality, and investment. Other speakers included Sam Bankman-Fried, CEO of crypto exchange FTX, and Ben Horowitz, one of the world’s most famous venture capitalists.

The Future Investment Initiative Conference attracts US business leaders, former government officials and investors.

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The Future Investment Initiative Conference attracts US business leaders, former government officials and investors.

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A more assertive and confident Saudi Arabia has emerged

Young says Saudi Arabia is trying to signal to the wider world that it “has changed.”

“It’s a foreign policy assertiveness,” she said. “It’s confidence in the Kingdom’s ability to attract investment and become a player in a much larger field.”

This week, there are many opportunities to broker deals on the sidelines of the conference, but Young says the conference is above all a public relations tool.

“This is more about visuals,” she said. “It’s about a kind of ideology about the future of the Kingdom, and frankly, more of a public relations effort than a place that I think we’ll see. the real commitment of foreign direct investment in building companies in the Kingdom. “

Despite recent reservations about Saudi Arabia, the Biden administration has said it is not advising American companies to stay away from the conference or the country.

“American companies will make their own decisions about their presence and where to invest, taking into account a range of factors including regulatory constraints, business environment and reputation,” said Karine Jean. language. -Pierre, White House press secretary.

President Joe Biden and Saudi Crown Prince Mohammed bin Salman met in Saudi Arabia in July. Since then, the partnership between the two countries has deteriorated further.

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President Joe Biden and Saudi Crown Prince Mohammed bin Salman met in Saudi Arabia in July. Since then, the partnership between the two countries has deteriorated further.

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Davos in the desert has not been smooth sailing

The conference that started in 2017 had aspirations to rival the annual meetings of the World Economic Forum in Davos, Switzerland, which have been convening for more than half a century. They regularly attract global leaders, economists and political scientists, and media personalities.

Saudi Arabia’s FII conference has faced setbacks from the start.

In 2018, Washington Post columnist Jamal Khashoggi was killed three weeks before the conference was scheduled to start, and at the last minute, many executives decided not to attend. Since then, the US intelligence community has determined that the murder was authorized by Crown Prince Mohammed bin Salman.

But in recent years, many executives have returned to Riyadh, attracted by the opportunity to mingle and mingle, and land lucrative contracts with the Saudi government.

One who never shied away was Anthony Scaramucci, who is perhaps best known for tenure of President Trump’s former communications director. He is currently a managing partner at SkyBridge, the investment company he founded.

In an interview before arriving in Saudi Arabia, Scaramucci said the country was “not perfect.” But he thinks its recent modernization efforts under the crown prince are commendable.

“It’s going in the right direction,” he said. “And as business people, I think we have to do our best to help them continue that progress.”

Anthony Scaramucci, a former communications director for President Trump, called the killing of Jamal Khoshogghi “a tragedy”.

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Anthony Scaramucci, a former communications director for President Trump, called the killing of Jamal Khoshogghi “a tragedy”.

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When asked about Khashoggi’s murder, Scaramucci called it “a tragedy.” But then ask: “Do we now have the ability to move that past?”

“It is an event that must be recognized as a tragedy,” he continued. “But I think we have to look at the long-term goals and the longer-term interests of global peace, global prosperity, and frankly global progress.”

The murder did not appear at a roundtable discussion moderated by CNN’s Richard Quest, which included Dimon, Solomon, Schwarzman, Dalio and several other executives. Several participants said they were happy to see them again in person, after years of COVID-related travel restrictions.

When asked about the future of the US-Saudi relationship, Dimon said he was optimistic.

“Saudi Arabia and the United States have been allies for 75 years,” he noted. “I can’t imagine any allies agreeing on everything and not having a problem. They’ll work it out.”

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