Global business leaders meet in Saudi Arabia on Tuesday for a glitzy investor forum as conflict shakes the region and scepticism mounts over the Gulf kingdom's most ambitious development projects. The Future Investment Initiative (FII) debuted in 2017 as a showcase for de facto ruler Crown Prince Mohammed bin Salman's dream of diversifying the economy of the world's largest crude exporter away from oil. This year's three-day event is expected to draw more than 7,000 delegates including TikTok CEO Shou Zi Chew and the chief executives of Citigroup and Goldman Sachs.
For the second year in a row, conflict in the Middle East is likely to shape panel discussions and side meetings. Last year's FII took place just weeks after Hamas's unprecedented attack on southern Israel triggered the war in Gaza, with high-level speakers warning about economic turmoil should the fighting draw in other countries. A year later those fears have been realised, as Israel presses operations against Hezbollah in Lebanon and carries out tit-for-tat strikes with Iran.
"I suspect attendees will reflect seriously on the grinding nature of the Israel-Gaza war, a new invasion in Lebanon, and ongoing concerns over region-wide conflict escalations," said Robert Mogielnicki of the Arab Gulf States Institute in Washington. "The Saudis have been effective in shielding their country from the worst effects of regional conflict for now, but it's very difficult to find a silver lining in this manner of conflict ragin.