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Sunday, January 20, 2019

Red signal on the Saudi Vision 2030: Private sectors wary of the Crown Prince (2)

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Business executives in KSA disgust MbS



Three members of the Binladen family, the largest conglomerate of construction business, were bailed out in a corruption case. But they had to be confiscated the 36.2% of their company stock to the government. Since this incident, domestic business executives left or shunned away from Crown Prince MbS.



For example, in April 2018 the Crown Prince and his delegation visited major cities in the United States for investment promotion for three weeks. His delegation visited not only New York, Washington and Boston on East Coast but also Seattle, Los Angeles, San Francisco and Houston. They held seminars in these cities asking technology transfer and offered investment opportunities in Saudi Arabia. Many influential conglomerates in Saudi Arabia have close relationship with US companies. But there was no names of prominent business owners in the list of delegation. Although they should naturally accompany to the delegation, It looked like that they avoid participating.



Another example was the election of the chairman of Federation of Saudi Chambers of Commerce and Industry (SCCI) in July 2018. It has been customary to elect the chairman of SCCI from one of three main CCIs in Riyadh, Jeddah or Eastern Province (Dammam). However, the chairman of Taif CCI was elected as Chairman of SCCI and the vice chairman was the top of Madinah and Hail CCI respectively. They are obviously minor actors. Prominent businessmen in Saudi Arabia sent a letter of challenge to MbS.



It is obvious that if they confronted the crown prince what would happen to them. So they are maintaining the attitude of obedience. It cannot be expected to activate the Saudi economy at all under such circumstances.



Fears about MbS shared by foreign investors



Intentional impeachment of corruption made Saudi businessmen to be disgusted with MbS. In case of foreign investors, the murder of Mr. Khashoggi made them fears about MbS. The world was surprised when Mr. Khashoggi was murdered lazily at the Saudi Consulate in Istanbul, Turkey. Although MbS denies involvement in the incident, no politicians in the world except US president Trump do not trust the claim of MbS. Foreign investors share the same opinion with politicians (It could be easily to suppose that President Trump awake himself the guilty of MbS as he heard the recording tape at the time of Mr. Khashoggi’s death.)



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Please tell us your comments and opinions on this matter.

By Areha Kazuya






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