US executives flocking to Saudi Davos despite US-Saudi tension: NYT
The US New York Times publishes a report by writer Kate Kelly in which she says that US investors are flocking to the Saudi "Davos in the Desert", while White House officials planned not to attend after tensions between Washington and Riyadh escalated over the latter's stance on the OPEC decision to reduce oil production.
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The Biden administration’s message to corporate America was clear: Consider the reputation of the countries you do business with.
Some senior US business executives are heading to the Saudi business conference, while Biden administration officials decided not to attend following Saudi Arabia's stance on Russia and the cut in oil production, the New York Times reported on Tuesday.
Read: Biden threatens KSA with 'consequences' over OPEC oil output cut
"The Biden administration’s message to corporate America was clear: Consider the reputation of the countries you do business with," writer Kate Kelly says in the report, adding that some top US executives were getting ready to head to the Future Investment Initiative or Davos in the Desert along with thousands of other businesspeople, investors, and politicians despite the ongoing tension between the two countries and Biden's warning that there would be “consequences.”
The meeting is scheduled to start on Tuesday, but "US government officials will be notably absent," the report added, after "an intense and public trading of accusations between the US and Saudi governments over an Oct. 5 production cut by the oil cartel OPEC Plus, co-led by Saudi Arabia and Russia."
Chief executives of Goldman Sachs, JPMorgan Chase, and Wells Fargo are expected to attend the conference, as well as top investors like Bridgewater founder Ray Dalio and the Blackstone Group chief Stephen A. Schwarzman. Others have received commitments to finance their investment firms from the main Saudi sovereign wealth fund. Thus, they are also expected to attend the conference, and according to the report, they are Jared Kushner and Steven Mnuchin, former Trump administration officials.
In her report, Kelly noted that "the Treasury, Commerce and State Departments all said their top officials were not planning to attend" adding that "the White House declined to say whether they were sending anyone."
Democrat Representative Ro Khanna, who is a sponsor of a bill that would temporarily ban US arms sales to Saudi Arabia, said that “This decision to cut production has been such a slap in the face of the U.S., and such an alignment with Putin, that I think it’s going to again generate bipartisan outrage."
However, despite the tension, the report adds, the Biden administration hasn't done much to deter companies from attending this week's forum; some like Blackstone and JPMorgan, have long-established business ties in Saudi Arabia, and other smaller companies hope to attract investments from deep-pocketed funders.
The conference, Kelly explains, is not just a venue for a parade of business deals, but investors know well how important it is to Saudis to show up in person as the kingdom tries to be a global hub for business and tourism.
It is worth noting that the head organizer of the Saudi investment conference, Davos in the Desert, pointed out on October 17, that "no invitations will be sent to US government officials to attend the conference, which will be held at the end of October," adding that it is to prevent the gathering from becoming a "political platform".
The decision not to invite US officials, contrary to previous years, comes as tensions escalated between Washington and Riyadh over the recent decision of the OPEC+ organization to reduce oil production by up to two million barrels per day, starting next November.
In recent days, Saudi Arabia has rejected Washington's accusations that it sided with Russia in the Ukraine war by cutting oil production, stressing that the decision is purely economic.
