Saudi Arabia’s deepening standoff with the US over OPEC+’s decision to cut oil production isn’t deterring Wall Street.
JPMorgan Chase CEO Jamie Dimon and Goldman Sachs CEO David Solomon are among US finance chiefs attending Riyadh’s glittering investment summit this week, a showcase for Saudi Crown Prince Mohammed Bin Salman. Meanwhile, the White House is escalating a war of words, with Joe Biden threatening “consequences” for the kingdom for its role in slashing crude output despite US objections.
US-Saudi relations are at their worst since the assassination of government critic Jamal Khashoggi in October 2018, the last time finance industry leaders shunned the annual jamboree.
This time, Prince Mohammed is sitting on his first budget surplus since coming to power, allowing him to channel billions of dollars into stock markets and assets globally, and plan some of the world’s most ambitious construction projects. In a slowing global economy, all of this makes the kingdom an irresistible draw for financial executives.
This week’s investment summit — the Future Investment Initiative — seeks to attract billions of dollars to the kingdom.
Rothschild has made two leadership appointments for his new office in Saudi Arabia, while JPMorgan is set to add another 20 people to its operation by the end of the year. The kingdom’s plan to use its massive sovereign wealth fund to pursue grand ambitions has helped create a $1.8 billion bonanza for global consulting firms.
Meantime, Saudi Arabia’s Public Investment Fund is in talks with Boeing and Airbus regarding orders for about 80 jets, the first aircraft purchases for a new national airline.