War fears dominate conversations on sidelines but excitement over Saudi Arabia prevails

No sessions at event were dedicated to the Israel-Gaza war or geopolitics, but there was no getting away from it

Among the 6,000 delegates at the annual Future Investment Initiative in Riyadh, there was palpable excitement about the future of Saudi Arabia. EPA

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There could not be a greater contrast between the visuals emerging from the devastation in Gaza and the gathering of the world’s financiers and financial leaders in Riyadh this week. As Saudi Arabia showcased yet more incredible milestones in its Vision 2030, the strikes on Gaza highlighted once again the lack of leadership, internal and global, when it comes to Palestine.

The head of the Saudi Public Investment Fund and chairman of Aramco Yasser Al Rumayan opened the seventh Future Investment Initiative on Tuesday morning with confidence in the economy’s future, despite concerns over inflation.

As he addressed hundreds of attendees about the due diligence his organisation adopts in choosing investment opportunities – following an upbeat show by dancers in futuristic costumes – outside the plenary hall, a large screen in the main pavilion carried a ticker tape of worrying headlines: “Israel-Hamas war rages as Gaza deaths mount” and “these Israeli-Americans are dropping everything to fly into a war zone” were among those beaming across the hall.

No sessions in the three-day long event were dedicated to the Israel-Gaza war or geopolitics, however there was no getting away from it.

International Monetary Fund managing director Kristalina Georgieva directly warned in her session on Wednesday of the fallout of the violence and its spill over, in addition to the tragic loss of life.

“In the neighbouring countries, Egypt, Lebanon, Jordan, there the channels of impact are already visible,” she explained, warning of long-term consequences. “Kids not going to school today means they won’t have the skills for tomorrow”.

Among the 6,000 delegates at the conference, there was palpable excitement about the future of Saudi Arabia, especially as its Minister of Finance Mohammed Al Jidaan announced his expectation for non-oil wealth in the kingdom to be above 6 per cent this year.

However, investment concerns in the wider global economy continue.

One person in attendance told The National: “Capital flows don’t like uncertainty, and at the moment, the world feels uncertain.”

With “The New Compass” as the theme for the FII meeting, there was increasing talk of Saudi Arabia and other Gulf countries being major centres of gravity for prosperity and innovation. And yet, there didn’t appear to be a compass for the world to deal with complex security issues, which chief executive of Citi Jane Fraser said should be at the heart of private sector planning.

“Security can be the new S in ESG”, she said, adding it was “hard not to be pessimistic” over regional tension after Hamas’s attack on Israel on October 7 and the Israeli strikes on Gaza that followed.

Ray Dalio, the founder of Bridgewater Associates, highlighted concerns about the economy beyond security. He said five factors impact the economy and can disrupt it. “Debt, money and interest rates; internal disorder; and geopolitical forces”, in addition to natural disasters and the advance of technology, “all five forces are interacting … and what we see today, we have to be concerned about the world”.

World Bank president Ajay Banga, making his first appearance at the FII in his new role, said that the one factor that would make his job “easier” was “peace and security”. And yet, fears for both peace and security are on the rise.

FII closes on Thursday amid continued uncertainty, as all indicators from Israel, the US and Iranian-backed proxies appeared to show preparation for further escalation in the region and more worrying headlines.