Saudi Arabia focuses on economic transformation amid regional turmoil

As tensions in the Middle East rise once again, Saudi Arabia is attempting to reshape its image on the global stage amid ongoing conflicts.

At a lavish investment summit held last week, discussions largely avoided the ongoing conflicts in the Middle East. Instead, the event featured promotions for robot-powered megacities, conversations about flying taxis, and Western business leaders encouraging attendees to “rethink what is possible”, Caliber.Az reports via foreign media. 

For Saudi Arabia, this summit, known as the Future Investment Initiative, aimed to highlight its ambitious plans to transform its economy, presenting itself to global investors as a center for artificial intelligence, finance, and tourism, despite its history of using technology for repression and surveillance of dissenters.  

However, behind the scenes, some fund managers expressed that concerns regarding Saudi Arabia's human rights record deterred certain clients from pursuing investments linked to the kingdom.

Officials also recognized Saudi Arabia's susceptibility to escalating violence in the region, noting that the conflict in Gaza had already disrupted Riyadh’s efforts to establish normalized relations with Israel, while Houthi attacks in the Red Sea had targeted shipping routes along the kingdom’s coast. 

“Further escalation is dangerous. It’s risky for all parties,” Saudi Foreign Minister Prince Faisal bin Farhan al-Saud stated at the summit. 

He emphasized that Saudi Arabia has focused on engaging with Iran to foster “regional stability.” However, as tensions regarding a broader conflict in the Middle East heightened last week following Israeli strikes on Iranian military targets, Saudi officials chose to concentrate on different matters. The agenda included ambitious promises of economic growth, attractive investment opportunities, and technological advancements. Officials asserted that Saudi Arabia was uniquely positioned to emerge as a global investment powerhouse.  

“In a world marked by uncertainty, countries that can mobilize capital and bridge gaps between east and west, north and south, are essential,” remarked Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), the largest sovereign wealth fund in the world. 

“Saudi Arabia stands as a super connector, with its unique resources and strategic geographic location,” he added.

At the heart of Saudi Arabia’s promotional strategy is Vision 2030, an ambitious development plan led by the crown prince and de facto ruler, Mohammed bin Salman. Commonly referred to as MBS, the prince aims for Saudi Arabia—home to the world’s second-largest proven oil reserves—to decrease its dependence on hydrocarbon exports and diversify its sources of income. 

By Naila Huseynova