http://ocininitiative.maeda1.jp/0458Ocin201901MbsEnglish.pdf
Fears about MbS shared by foreign investors(cont’d)
At the Investment Initiative Conference held in Riyadh immediately
after the Khashoggi incident, executives of international institute and foreign
big companies who planned to participate continuing from the previous year
stopped attending. If he or she participates in the conference, the image of
institute or company would clearly be scratched. If absent, there would be another
risk of missing business opportunity. But the former risk which would be
resulted in bashing from the media and stakeholders was more serious for them. Among
such circumstances it took notice that how Mr. Masayoshi Son, Chairman of
SoftBank of Japan, dealt with MbS. Mr. Son stood in with MbS and has
established the world's biggest investment fund, so-called SoftBank Vision Fund
with the prince. He has to obey to MbS. He went to Riyadh and met MbS but did
not show up on the investment conference. This was at his best.
Struggling MbS
Being confronted with unfavorable wind, arrogant and irresponsible
MbS was quite impatient. In July 2018, a picture was shown in a newspaper that MbS
pleasantly chatted with Prince Alwaleed who has been caught in a corruption
case. It showed as if they settled their differences[2]. It was
impossible to invite executives in domestic and abroad for Vision 2030 without
the business network of Alwaleed. Although the government confiscated the stocks
of Saudi Binladen Group (SBG), government officials had no capability to manage
construction business. They faced to carry out mega projects like NEOM. Therefore
the government forced to reappoint the Binladen family as the board members[3].
MbS raised the flag of populistic policies such as license for women's
driving, opening a movie theater and giving cost-of-living bonus. So far MbS
have caught the heart of young generation. However, the economy is unable to
turn into better condition only by populism. Needless to say, cooperation with
private sectors is indispensable for raising the economy. But both of domestic
and foreign business executives are keeping a distance from MbS. Saudi Arabian
economy in 2019 will get slump.
End
Please tell us your comments and opinions on this matter.
By Areha Kazuya
E-mail: Arehakazuya1@gmail.com
[2] ‘Crown Prince Mohammed bin Salman meets
with Prince Alwaleed, discuss role of private sector under Vision 2030
[3] ‘Saudi corruption settlements will net “not significantly less”
than $13 bln in 2019 – minister’ on Arab News, 2018/12/19
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