Saudi Hosts World’s Business Elite with Eyes on Gigaprojects, AI

AFP/APP

Riyadh: Saudi Arabia is welcoming heads of state and global business leaders at a major investment conference this week as it seeks backing for its vast “gigaprojects” and ambitious artificial intelligence (AI) plans.

Chinese Vice President Han Zheng, several ministers, and more than 150 business leaders — along with Syria’s interim president — are among the high-profile guests attending the Future Investment Initiative (FII) in Riyadh.

Also in attendance are Donald Trump Jr and the chiefs of major US investment firms including Goldman Sachs, JP Morgan, and BlackRock. The event is taking place at the opulent King Abdulaziz International Conference Center, a former royal palace.

The conference opened Monday with closed-door discussions, with public sessions beginning Tuesday.

Dubbed “Davos in the Desert,” FII aims to attract investment to Saudi Arabia as the world’s largest oil exporter pushes to diversify its economy. The ninth edition of the summit — featuring around 20 heads of state — is being held against the backdrop of a Gaza ceasefire and strong Gulf economic growth.

However, questions loom over the kingdom’s high-profile megaprojects, including NEOM, the $500 billion futuristic city seen as the centerpiece of Saudi Vision 2030. Reports of delays, leadership reshuffles, and design overhauls have surfaced amid falling oil revenues and a growing budget deficit.

“FII is an important annual opportunity to drum up foreign investments to help finance the expensive and at times challenging economic transformation agenda,” said Robert Mogielnicki, a senior resident scholar at the Arab Gulf States Institute in Washington.

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“There is clearly a recalibration of spending priorities going on, so investors will be looking for where the money is headed going forward.”

AI in Focus

Karen Young, a Gulf economic policy expert at the Middle East Institute, noted that scaling back some megaprojects may not deter investors.

“On the contrary, it shows fiscal discipline,” she said, highlighting continued opportunities in tourism, entertainment, real estate, and oil infrastructure.

Saudi Arabia also hopes to demonstrate that it is a serious player in the global AI race, competing with other wealthy Gulf nations. Deals are expected involving Humain, an AI company owned by the Public Investment Fund, and several international partners, according to FII organizers.

“Some of Saudi Arabia’s new tech companies are rather nascent, so they’ll be looking to assure audiences that the kingdom’s tech ambitions are very real, feasible, and exciting,” Mogielnicki added.

The conference precedes Crown Prince Mohammed bin Salman’s anticipated visit to the United States — his first since March 2018, months before the killing of journalist Jamal Khashoggi strained ties with Washington.

During the upcoming trip, the crown prince is expected to meet US President Donald Trump, following the latter’s visit to Riyadh earlier this year, which saw Saudi investment pledges worth $600 billion.

“There is a heavy presence of US businesspeople, reflecting the importance of the US-Saudi business corridor,” said Mogielnicki.