Israel-Hamas Conflict Overshadows Saudi's Annual Future Investment Initiative Conference

Growing Security Concerns and Economic Challenges Threaten Saudi Arabia's Efforts to Diversify Economy Amidst Attempts to Boost Foreign Investment

The Israel-Hamas conflict is overshadowing Saudi Arabia's annual Future Investment Initiative (FII) conference, a key part of Crown Prince Mohammad bin Salman's plans to diversify the Kingdom's economy away from oil, with prominent attendees including Goldman Sachs Chief David Soloman, BlackRock Founder Larry Fink, and JPMorgan Chase’s Jamie Dimon.
The conflict has shaken investor confidence in the global economy, sparking fears of a spiralling conflict that could undermine security across the Middle East and affect attitudes towards investment in Saudi Arabia, potentially slowing down the Kingdom’s $1 trillion Vision 2030 plan for economic diversification.
Despite escalating regional tensions, top Wall Street financiers remain interested in the Middle East for its potential for strong economic growth and valuable connections with Saudi Arabia’s $778 billion sovereign wealth fund, demonstrating the draw of the region for international investors.
Efforts to attract overseas investment into Saudi Arabia are yet to meet the Kingdom's goals, with foreign investments coming in at around 1% of Saudi GDP since 2017, compared with a target of 6%.
Saudi Arabia's sovereign Public Investment Fund (PIF) aims to inspire global investors and future-proof societies despite the current global uncertainties, continuing to execute plans such as the development of Neom, a $500 billion futuristic desert city, aiming to attract startups and tourists.