Saudi Arabia is set to host leading figures in finance and technology next week, aiming to test investor interest in its goal of becoming a global hub, despite ongoing regional conflicts. This event, the Future Investment Initiative, commonly referred to as “Davos in the desert,” will convene international executives amidst heightened geopolitical tensions, particularly the potential for military escalations between Israel and Iran. Attendees will also face the reality of Saudi Arabia’s limited oil wealth.
Participants in the Future Investment Initiative will have the chance to engage with Crown Prince Mohammed bin Salman’s ambitious Vision 2030 plan, despite concerns about the region’s stability. Regular attendees such as Goldman Sachs Group Inc.’s David Solomon, Citigroup Inc.’s Jane Fraser, and BlackRock Inc.’s Larry Fink are set to return to the Riyadh summit. Among the newcomers are Alphabet Inc. President Ruth Porat and TikTok Inc. CEO Shou Chew, as well as Benjamin Horowitz of Andreessen Horowitz, indicating the summit’s emphasis on technology and artificial intelligence.
Saudi Arabia has been attracting Wall Street and Silicon Valley attention due to its vast financial resources, while seeking to curb overseas investments in favor of bolstering domestic projects. There are plans to announce over $28 billion in deals, showcasing a commitment to advancing sectors such as artificial intelligence and hydrogen production, with a potential new fund with Andreessen Horowitz valued up to $40 billion.
The summit’s backdrop, however, remains uncertain. Saudi foreign policy has focused on reducing regional tensions to attract foreign capital, though recent events highlight persistent instability. According to Gregory Gause, a professor at Texas A&M University, regional instability negatively impacts foreign investment, except for sectors like defense.
The Saudi government continues to pursue ambitious development plans despite financial constraints, with some projects facing delays due to budget forecasts predicting deficits until at least 2027. The powerful Public Investment Fund (PIF) is increasingly prioritizing domestic projects, which may affect its international investment capacity.
The Future Investment Initiative remains a popular event, with approximately 7,000 registrants this year, surpassing last year’s numbers. Despite the geopolitical situation, FII Institute’s CEO Richard Attias expressed confidence in the event’s continued relevance, emphasizing the sustained global interest in Saudi investment opportunities.
